One of the largest factors that are harming Ethereum’s credible neutrality is the use of censoring MEV relays by crypto exchanges and ecosystems.
For a majority of the Crypto ecosystems, being compliant with federal sanctions have a negative effect on its global reach. Nevertheless, when it comes to Ethereum, investors have considerable power to determine the degree of compliance the ecosystem obeys.
Almost 60% of all post-Merge Ethereum blocks seem to comply with the United States sanctions that were put forth by the Office of Foreign Assets Control (OFAC). While the crypto space stands against the transformation, most fail to realize that their contribution to helping Ethereum attain total OFAC compliance.
One of the largest factors now harming Ethereum’s credible neutrality is the use of censoring MEV relays by crypto ecosystems and exchanges. Miner extractable value (MEV) relays operate as a mediator between block producers and block builders, which are mostly used by prominent crypto operators, like Coinbase, Binance, Cream Finance, Celsius Network, and Kraken, to name a few.
Users staking Ether (ETH) on various platforms that run censoring MEV relays on their validators are directly contributing to the censorship of Ethereum. Crypto platforms can help in remediating the situation by adopting a non-censoring MEV-boost relay.
For the validators and relay operators, some of the popular MEV-boost relays that do not promote censorship include Aestus, BloXroute Max Profit, Relayooor, Ultra Sound Money, Agnostic Boost, BloxRoute Ethical, and Manifold.
At the time of publication, 67 of the last 100 Ethereum blocks were found to be enforcing OFAC compliance.
As investors, it is crucial to understand that protocol-level censorship is deterrent to crypto’s goal of unleashing open and inclusive finance. Thus, it becomes crucial for both investors and Service providers to opt for non-censoring MEV-boost relays.
The Ethereum ecosystem recently saw two dormant addresses activate after four years to transfer 22,982 ETH.
#PeckShieldAlert 2 Dormant addresses transferred 22,982 $ETH (~27.2M) to 2 fresh addresses, their last movement was October 2018 (1,535 days ago).
These $ETH originated from Genesis and Poloniex pic.twitter.com/MXKpLnypif
— PeckShieldAlert (@PeckShieldAlert) December 19, 2022
The ETH transfers in question can be traced back to Genesis and Poloniex trading platforms where the unknown whales transferred 9,878 ETH and 13,103.99 ETH respectively.