The Ethereum Merge is one of the most anticipated events in crypto history.
The transition, meant to take Ethereum from its current Proof-of-Work consensus mechanism to a Proof-of-Stake model, has been in the works since Ethereum’s inception. However, it took its first step in December 2020, when the Beacon Chain was successfully launched. And now, with the consensus mechanism running unimpeded for a year and a half and over 13 million staked ETH, developers feel confident enough to move to the second step. This requires joining the consensus layer of the Beacon Chain with the execution state of the main Ethereum chain, the process known as “the Merge”.
This new era to the Ethereum protocol brings better security, greater energy efficiency, and sets the stage for future scaling efforts meant to take Ethereum to the moon.
Chorus One has been closely following the development efforts to bring Proof-of-Stake Ethereum to reality. As a trusted staking provider in the ecosystem, we are participating in testing the Merge at this critical point with our Prater/Goerli nodes ready for transition. We are particularly aware of the risks associated with such a significant change of operations in a blockchain that has captured a major part of the economic activity in the crypto ecosystem. For that reason, our goal remains to support decentralised networks to promote the security and availability of our services, and to increase the rewards of our clients under such a standard.
As we think of the future for both our operations in the Ethereum ecosystem and the existential threats that can compromise the integrity and stability of the network, we have devoted a lot of effort into understanding MEV and clarifying our position towards it.
On our path to support a more decentralised, democratic and fair distribution of MEV rewards for our stakers, we would like to announce our support for MEV-Boost.
Although MEV continues to be a controversial and cutting-edge space for research, we believe that this can be an interim solution as we wait for more sophisticated in-protocol upgrades. On a high level, MEV-Boost is an implementation of proposer-builder separation (PBS) built by the Flashbots team for Proof-of-Stake Ethereum. As a free, open-source and neutral software, we believe it embraces the values of the Ethereum community and can be a valuable asset for all validators, big or small.
By participating in the fair extraction of MEV, we believe we are unlocking the real value of the networks we support, as well as increasing the value of staking to promote higher rates of participation, and an increase in the security of the PoS protocol.
As staking providers, running MEV-Boost allows us to maximize the staking rewards of our clients while protecting Ethereum decentralization, with an estimated increase of 60% in the rewards we can share.
Unlike previous Flashbots’ offerings, this software is compatible with all client implementations of the Ethereum protocol, making it a big step towards further client diversity, a topic that has been the subject of research at Chorus One in the past year.
Finally, we are committed to evaluate and continue to monitor different approaches to our MEV implementations, and to the risks of single-relay and single-block producers, working with different teams to find the most balanced system. Fair MEV extraction continues to be something we iterate on going forward.
In the coming days we will be getting ready to test MEV-Boost on our Goerli infrastructure to best prepare in time for the mainnet Merge. We have been working closely with Flashbots and collaborating with other node operators to ensure that the product is ready and tested by the time it goes live.
MEV is an inevitable part of participating, not only on blockchains, but in all ordered economic systems. Our intent is to be responsible participants of Ethereum and beyond, with MEV research spanning Solana and Cosmos, there is more to come. For the time being, follow our node readiness for MEV-Boost here.
Chorus One is one of the largest staking providers globally. We provide node infrastructure and closely work with over 30 Proof-of-Stake networks.