Marinade Finance Releases New Proposal to Solve MEV Issues

BlockBeats news, December 11, Marinade Finance, one of the largest staking platforms on Solana, is currently discussing a new governance plan to deal with malicious validators and solve the problem of maximum extractable value (MEV) on the current network.

Marinade Finance believes that MEV is both a challenge and an opportunity because it can help improve network efficiency by optimizing liquidity and rewarding validators. On the other hand, uncontrolled MEV may lead to negative user experience, such as front-running, mezzanine attacks, and centralized control, thereby undermining decentralization. The democratization of MEV will involve creating systems and practices to ensure a fairer distribution of the opportunities and rewards provided by MEV. The goal is to prevent power from being concentrated in the hands of a few participants and to ensure that a wider range of stakeholders can benefit from activities related to transaction sorting.

To address the mezzanine problem and other side effects of MEV, Marinade's proposal proposes a "balanced" approach that focuses on reducing harmful MEV while redistributing it as fairly as possible through an open market. Additionally, the proposal advocates for funding MEV research by allocating MNDE DAO treasury funds to dedicated research initiatives to increase transparency and data.