One of the biggest factors detrimental to Ethereum’s reliable neutrality is the use of MEV relay censorship by the crypto ecosystem and exchanges.
For most crypto ecosystems, compliance with federal restrictions has a negative impact on its global reach. But when it comes to Ethereum, investors have considerable power to determine the degree of compliance of the ecosystem.
Approximately 60% of post-merger Ethereum blocks comply with United States restrictions imposed by the Office of Foreign Assets Control (OFAC). While the crypto community stands against this change, many fail to realize their contribution in helping Ethereum achieve full OFAC compliance.
One of the biggest factors damaging Ethereum’s trustworthy neutrality is the use of censoring minor extractable value (MEV) relays by the crypto ecosystem and the exchange MEV relay acts as an intermediary between block producers and block creators, whose use is major Crypto players, such as Binance, are done by Celsius Network , Coinbase, . Kraken and Cream Finesse, to name a few
Leaderboard of top Ethereum censorship offenders. Source: MEV Watch
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Platforms (as shown above) that run censoring MEV relays on their authenticators are directly contributing to the censorship of Ethereum. Crypto platforms can help remedy the situation by adopting non-censoring MEV-boost relays.
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Some popular MEV boost relays for verifiers and relay operators that do not promote censorship include Ultra Sound Money, Agnostic Boost, Estus, BloxRoot Max Profit, BloxRoot Ethical, Manifold and Releooor
OFAC compliance data for the last 100 Ethereum blocks. Source: MEV Watch
At the time of writing, 67 of the last 100 Ethereum blocks were found to be triggering OFAC compliance.
As investors, it is important to understand that protocol-level censorship is a deterrent to crypto’s goal of freeing up open and inclusive finance. Therefore, it becomes important for investors and service providers to opt for non-sensorable MEV boost relays.
Related: Developers Say BnB Chain Now Has More Unique Addresses Than Ethereum
In the Ethereum ecosystem, two sleeping addresses recently woke up after four years with 22,982 ETH transferred.
#PeckShieldAlert moved $22,982 (~27.2M) from 2 dormant addresses to 2 fresh addresses, with last movement October 2018 (1,535 days ago).
This $ETH originated from Genesis and Poloniex pic.twitter.com/MXKpLnypif
— PeckShieldAlert (@PeckShieldAlert) Dec. 19, 2022
The ETH transfer in question can be traced to Genesis and Polonex on the trading platform, where the unidentified whale transferred 13,103.99 ETH and 9,878 ETH respectively
