On The Brink with Castle Island cover image

Matt Cutler (Blocknative) on block building and the economics of MEV (EP.401)

On The Brink with Castle Island

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Block Builders Subsidizing Blocks

In the early days of the network, certain builders would subsidize or to increase their win rate. What's emerged recently are our builders who are subsidizing blocks at hundreds of eat, like very serious amounts of value. And I think this has a lot of people sort of scratching their head. But what it does is it makes it pretty hard to compete. It creates disincentives for participation and it creates sort of the underlying conditions for centralizing forces.

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