Ethereum Proposal Aims to Decentralize Block Building, Reduce MEV

An Ethereum researcher has proposed a novel block proposal mechanism aimed at decentralizing Ethereum’s block-building process. The proposal, dubbed the “Decentralized Random Block Proposal,” suggests implementing a shared random algorithm to eliminate Maximal Extractable Value (MEV) at the block level and distribute block construction more equitably across the network.

The pseudonymous researcher Malik672 detailed the concept in a March 1 post, explaining that while Ethereum’s proof-of-stake (PoS) model and the proposer-builder separation (PBS) system have mitigated MEV concentration to some extent, block-building remains highly centralized. Ethereum Foundation researcher Toni Wahrstätter previously highlighted that two block builders, Beaverbuild and Titan Builder, were responsible for constructing 88.7% of Ethereum blocks in the first half of October 2024. Though this concentration has since dropped to around 80%, Malik672 argues that this level of centralization remains a significant concern.

Under the new proposal, block construction would no longer be controlled by a handful of builders. Instead, all Ethereum clients would participate using a cryptographically random selection process. This approach, Malik672 claims, would prevent manipulation and create a more trustless and decentralized Ethereum network. Additionally, the proposal aligns with Ethereum’s Danksharding roadmap, ensuring compatibility with layer-2 scaling solutions. Malik672 also suggested that the mechanism could reduce slot times from the current 12 seconds to 6–8 seconds, improving transaction finality.

The proposal comes amid broader discussions within the Ethereum community on expediting Ethereum upgrades. On Feb. 13, Ethereum developers agreed to accelerate the rollout of technical improvements, signaling a commitment to refining the blockchain’s infrastructure at a faster pace. The Pectra upgrade, a significant enhancement to the Ethereum network, was activated on the Holesky testnet on February 25. Activated at epoch 115,968, the upgrade aims to stress-test new features in a controlled environment.

As reported, a significant on-chain metric supporting ETH’s long-term bullish case is its rapidly declining exchange supply. As of now, only 6.38% of Ethereum’s total supply remains on centralized exchanges, marking the lowest level since its inception. Meanwhile, Ethereum’s transaction fees have also plummeted to their lowest level