Maximum Extractable Value

There is a debate/controversy going on in the ETH community right now regarding MEV - or maximum extractable value. This basically centers on the idea that Ethereum miners are able to structure blocks and transactions in such a way that they are able to extract value. Not a new phenomenon, but the appearance of publicly available bots that do this has caused quite a stir in the ETH community.

It made me wonder however to what extent this could be a problem for Terra, and assuming that to a certain extent it will be, what can be done to mitigate this.

One possible countermeasure is of course the delegation, and the fact that generally validators rely on them to be included in the validator set, and thus have a chance at being selected to propose blocks (which they could then MEV).

One counter measure would simply be to run independent nodes, that could compare the ordering of transactions from their perspective, with how they are ordered by different validators, which would allow delegators to identify exploitative validators and act accordingly.

Anyway, thought it would be interesting to hear the thoughts and perspectives of the much more knowledgeable crowd here :wink:

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