The Effects of MEV Burn on Ethers

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The net effect of MEV burn will actually be a transfer of wealth from ether stakers to ether holders. So there will be a lesser incentive to stake ether because the yields to e-staking will go down. In an inefficient market, the rewards for staking will tend to the cost of money. Because the burn increases the scarcity of ETH, it fuels this value in the price of ETH.

Ethereum is getting yet another economic upgrade! The scarcity engine is getting a massive level up with the advent of the MEV Burn.

With Justin Drake and Domothy, they walk us through the research and reasoning behind this next upgrade

Just when we thought we couldn’t get any more bullish…

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------ Topics Covered

0:00 Intro 7:00 What is MEV? 13:30 MEV is Subjective 17:15 The Oil Analogy 21:15 The Benefits of Smoothing 28:35 Builders and Proposers 38:45 Forced Centralization 44:35 Rug Pool Protection 48:30 Distribution 58:20 Pros of Burning 1:05:15 Burning on Overdrive 1:09:30 Does this Hurt Stakers? 1:13:55 Too Deflationary? 1:23:30 Monetary Premium 1:28:15 EIP-4844 1:31:00 The Engine 1:35:50 Wen?

——— Resources:

Justin Drake: https://twitter.com/drakefjustin?s=20

Dom: https://twitter.com/domothy?s=20

Hildobby's Dune Board: https://dune.com/hildobby/eth2-staking

Ultrasound.Money: https://ultrasound.money/

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