TL;DR
- Marinade Finance has proposed a governance plan to address malicious validators and democratize maximum extractable value (MEV) on the Solana blockchain.
- The proposal aims to prevent the concentration of MEV power among a few participants, promoting equitable distribution and enhancing network efficiency and decentralization.
- Marinade seeks to mitigate sandwich attacks by implementing measures to reduce exploitative behavior, ensuring a more inclusive and decentralized ecosystem on Solana.
Marinade Finance, a leading liquid staking platform on the Solana blockchain, has put forward a governance proposal aimed at addressing the issue of malicious validators and democratizing maximum extractable value (MEV) on the network. The proposal comes in response to growing concerns about the negative impact of MEV on user experience and network decentralization.
While MEV can optimize network efficiency by enhancing liquidity and rewarding validators, it can also lead to harmful practices such as front-running and sandwich attacks if left unchecked. Marinade’s proposal seeks to strike a balance by mitigating harmful MEV while promoting the equitable distribution of MEV opportunities and rewards.
Democratizing MEV
The proposal emphasizes the need to democratize MEV to prevent the concentration of power among a few participants. Marinade suggests creating systems and practices that ensure a broader set of stakeholders can benefit from MEV activities.
This approach aims to enhance network efficiency and decentralization by distributing MEV rewards more equitably. Marinade’s proposal highlights the challenges posed by the closure of public mempools by MEV protocol Jito Labs earlier this year.
The rise of private mempools controlled by a few entities has exacerbated the centralization of MEV, making it more difficult for smaller participants to compete. By democratizing MEV, Marinade aims to create a more inclusive and decentralized ecosystem on Solana.
Tackling Sandwich Attacks
A key concern addressed in the proposal is the prevalence of sandwich attacks on Solana. In a sandwich attack, an attacker places their own transactions before and after a victim’s transaction, manipulating the price of the asset being traded and profiting at the victim’s expense.
Marinade’s proposal seeks to mitigate these attacks by implementing measures that reduce the opportunities for such exploitative behavior.
Marinade’s governance proposal represents a proactive approach to tackling the challenges associated with MEV on Solana. By addressing malicious validators and promoting the democratization of MEV, Marinade aims to enhance the overall user experience and ensure a more decentralized and equitable network.
