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Maximal Extractable Value (MEV) Meaning

The maximum value that a block producer (a validator in Proof of Stake or a miner in Proof of Work) can extract from the network by strategically reordering, inserting, or censoring transactions within a block they are producing. Think of it as the invisible tax of the decentralized world.

MEV often occurs through front-running or sandwich attacks. For example, if a bot sees a large buy order for a token, it can jump the line, buy the token first, let the large order push the price up, and then immediately sell for a profit.

This all happens within a single block.

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