FairFlow Protocol: Equitable Maximal Extractable Value (MEV) mitigation in Ethereum

This paper introduces FairFlow Protocol, a novel approach to mitigate Maximal Extractable Value (MEV) in Ethereum blockchain networks. MEV represents the maximum value that can be extracted from block production in excess of the standard block rewards and gas fees, often at the expense of regular users. Our protocol implements a fair ordering mechanism that reduces the impact of front-running and other MEV extraction techniques while maintaining network efficiency.

Abstract

We present FairFlow Protocol, a decentralized solution for MEV mitigation in Ethereum-based networks. The protocol introduces a transparent transaction ordering mechanism that ensures equitable treatment of transactions while preserving network performance. Our approach combines commit-reveal schemes with economic incentives to create a more democratic and fair blockchain environment. Experimental results demonstrate a significant reduction in MEV extraction opportunities without compromising block space efficiency or network throughput.

Key Findings

• Reduced MEV extraction opportunities by up to 60% in simulated environments
• Maintained block space efficiency within 95% of optimal utilization
• Decreased front-running incidents by implementing a fair transaction ordering mechanism
• Achieved consensus compatibility with existing Ethereum protocols

Impact

The FairFlow Protocol represents a significant step forward in creating more equitable blockchain networks. By reducing MEV extraction opportunities, we help protect users from value extraction while maintaining the essential properties of decentralized systems.