When a validator is using MEV-boost with relays, how would the extracted value credited to their balance? Does it happen through the protocol itself or included as a transaction to fee recipient address of the validator with the extracted amount in the proposed block? Thanks, in advance.
1 Answer
When a validator is using MEV-Boost with relays, the extracted value (MEV) is credited to their balance through a transaction included in the proposed block, not directly through the protocol itself.
For example, consider a validator named Alice. When it's her turn to propose a block, she uses MEV-Boost to source a block from relays that maximize MEV. The relay constructs a block containing transactions that generate additional profit, say 0.1 ETH, and offers this block to Alice. Alice selects this block, which includes a transaction that transfers the 0.1 ETH to her specified fee recipient address, ABC. Once the block is included in the blockchain, this transaction is executed, and the 0.1 ETH is credited to Alice's address. Thus, the MEV is credited through the inclusion of a specific transaction in the block, rather than being directly handled by the consensus protocol.
