64% of Ethereum transaction blocks are now OFAC compliant

According to MEV Watch, 64% of all transaction blocks on the Ethereum blockchain are compliant with OFAC sanctions, in line with regulatory guidelines.

The most influential factor is the widespread adoption of maximum value mined relays, which reshuffle transaction blocks to maximize rewards. Nevertheless, it is almost certain that this statistic will continue to spark debates regarding the use of MEV relays and the possibility of filtering transactions on the publicly visible Ethereum network.

The most popular of these relays, accounting for around 49% of the total MEV block market, is Flashbots, which said it will not consider transactions from transaction mixing provider Tornado Cash, which has been banned by the US government. earlier this year.

Status of OFAC compliant blocks: MEV Watch

Since The Merge, many Proof-of-Stake participants have opted to engage service providers to acquire validation incentives. The consolidation of this trend, coupled with the dominance of Flashbots, has led to an increase in the number of OFAC-compliant blocks.

The number of blocks offered through the Flashbots relay doubled in the past month, from 2,210 on September 25 to nearly 4,000 on October 25, according to The Block Research.

Flashbots does not neglect the problem. The company provided solutions to mitigate transaction filtering and revealed an upcoming protocol that aims to open source and gradually decentralize MEV technology development.

These statements followed the departure of co-founder Stéphane Gosselin, who resigned over differences with the team over network restrictions.

While many network users see Flashbots as a source of censorship, chief strategist Hasu recently said that the lack of unbiased relays and reliance on vertical relays that function as builders and can favor their blocks over to others constitute an ecosystem failure.

Although the team’s remaining founder, Phil Daian, does not foresee a scenario where Flashbots establishes a fully controlled Ethereum network by offering 100% of Ethereum blocks, Flashbots adoption continues to grow.

According to the Flashbots Transparency Dashboard, the percentage of blocks offered by Flashbots MEV-Boost Relay has increased from 12% on October 1 to 56% at the time of writing.

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