Discussion on the Current Status and Future Development of MEV on Sui

MEV( has become a hot topic in the blockchain industry, as it involves transaction ordering and arbitrage opportunities. To ensure transparency, protect transactions, maintain network health, and reward participants, Sui has been strategically implementing improvement proposals and other mechanisms to guide the development of MEV on the network.

In the future, Sui plans to establish more mechanisms to ensure that high-level principles guide the evolution of MEV on the network.

![Understanding the Current Status and Future of MEV on Sui])https://img-cdn.gateio.im/webp-social/moments-75b9ec7f9e0935e241986e4bd6723347.webp(

Design Principles and Considerations

Every transaction on Sui introduces new information, bringing potential profit opportunities. The MEV ecosystem of Sui is formed through several mechanisms:

• The mechanism for submitting MEV transactions
• Mechanism for releasing MEV opportunities
• Mechanism for distributing MEV income
• Mechanisms to protect user transactions

The overall priorities are as follows:

• User trading protection is more important than the quantity of extracted value.
• Network transparency is superior to offline transactions with verification nodes or relays.
• Promote competition through prioritized gas auctions to curb inefficient garbage behaviors.
• Encourage the distribution of rewards to participants aligned with the ecosystem

Transaction Submission

Due to the sequential execution of transactions modifying the same object, clients compete to increase their chances of execution order. From a system perspective, priority gas auctions )PGA( are an effective resource allocation method that can prevent spam while redistributing gas fees among participants.

The key driving factor of PGA is quantitative execution:

• Transactions sorted by consensus are processed in the block.
• Traders compete for priority through gas auctions.
• Higher consensus submission rate reduces PGA window
• The PGA of non-congested objects is most important to the fastest seekers.
• Congestion objects may delay transaction execution, further amplifying the importance of PGA.

There are two mechanisms to direct transactions to specific upcoming Sui submissions:

1. Submit a batch of transactions through soft bundling )SIP-19(
2. Amplify priority transactions through consensus )SIP-45(

These mechanisms allow for off-chain auctions of the original transaction and subsequent transactions, and address potential jitter issues in consensus submission.

Choose the appropriate trading gas price

The client should consider the following main factors to determine the gas price for submitting a transaction:

1. Priority gas auction
2. Consensus Submission Amplification
3. Avoid congestion delays and cancellations

The gas price for full nodes tracking the execution and cancellation of transactions, especially those involving modifications to congestion objects. By utilizing this information, clients can determine the required gas price to avoid transaction delays with a high probability.

Release Trading Information

Every transaction on Sui introduces potential profit opportunities. The lifecycle of shared object transactions includes multiple stages such as client submission, RPC node broadcasting, validator node submission, transaction execution, effect certificate return, and checkpoint generation and propagation.

) Information dissemination before submitting a transaction

Sui has an off-chain auction system for submitting soft bundling. These auctions intercept transaction submissions through an off-chain protocol between the application and the auction system.

Consensus Block Streaming

To achieve low-latency user transaction access, Sui is designing a system for directly streaming consensus blocks. Full nodes will be able to directly subscribe to consensus blocks, proactively notifying of transactions that are highly likely to be submitted.

Protecting User Transactions

User transactions need protection from front-running, backrunning, and involuntary submission delays.

External member drive

Sui transaction submissions require external members to drive them, usually executed by full nodes. This provides a natural layer of protection, assuming trust in the full nodes responsible for submitting transactions.

Mysticeti Quick Path

Sui is working on a project to change transaction submissions to a fast path protocol. This greatly enhances system efficiency but also provides an opportunity for validation nodes to access user transactions through pre-trades.

The Evolution of MEV in Sui

The MEV ecosystem of Sui is still in formation, and new mechanisms will be introduced in the future. Currently, priority gas auctions and consensus amplification define the current system, while upcoming innovations, such as time-locked encryption and fast paths, will reshape transaction execution and security. As these mechanisms go live, MEV on Sui will continue to evolve, creating a more dynamic and transparent ecosystem.

![A Comprehensive Understanding of the Current Status and Future of MEV on Sui]###https://img-cdn.gateio.im/webp-social/moments-6dae0c442b5d72296728a401858cf5ea.webp(