Lesson 5

Regulation, Technical Innovation & Cross-chain Ordering—the Future Trajectory of MEV

As MEV shifts from fringe phenomenon to core economic force within blockchain—the ecosystem's evolution follows suit.Today's ordering markets aren't just single-chain—they're moving toward cross-chain/protocol-native/globalized infrastructure scale.With PBS maturing/L2 expansion accelerating/regulators eyeing transparency/fairness—the future of MEV isn't just about capturing value—but managing it sustainably/distributed/user-friendly ways.This lesson explores long-term trends in technology/markets/regulation—and discusses how this force will reshape DeFi & on-chain applications going forward.

Technical Trends: Toward Cross-chain Coordination Beyond Single-chain Ordering

MEV technology is evolving beyond single-chain optimization toward complex cross-chain coordination.

With Ethereum rollups scaling up/Layer 2 ecosystems maturing—ordering now spans multiple chains’ info sync/value coordination.

For example—as assets flow between L1/OP Stack/ZK Rollup—asynchronous state updates/price delays create new cross-chain arbitrage/liquidation opportunities; these require deep understanding of various chains’ execution environments/timing/liquidity structure.

Meanwhile—PBS advances are changing ordering models; more public chains plan protocol-level PBS integration—to make sequencing native/reduce relayer centralization/black-box risk.

Trusted hardware/zero knowledge simulation/verifiable ordering all boost transparency/security.

Overall—MEV tech trends point toward cross-chain collaboration/higher transparency/more validation mechanisms—the future sequencing system resembles networked infrastructure across chains—not just an intra-chain competition tool.

Market Trends: From Rivalry Toward Early Formation of Sequencing Networks

As builder/relayer/searcher roles become more distinct—the ordering market itself begins industrializing.

Clear trends include:

1. Builder specialization & scale intensifying competition

Major institutions are entering sequencing markets—with fast nodes/special hardware/custom simulation setups making it hard for small searchers to stay competitive in certain areas.

2. Marketization of MEV value

Some ecosystems (like Solana/some L2s) use bidding/auction mechanisms so sequencing rights become open market commodities.

3. Shift from intra-chain rivalry toward inter-chain competition

Chains with transparent sequencing/mature tooling attract more institutional liquidity—strengthening infrastructure as competitive edge.

We may see global sequencing service providers emerge—offering cross-chain coordination for multiple public chains.

Regulatory Trends: Transparency, Anti-manipulation & Fair Execution in Focus

With MEV increasingly affecting user experience/pricing/market orderliness—regulators worldwide now see it as potential financial infrastructure concern—not mere technical matter.

Regulators focus most on whether sequencing leads to market manipulation—sandwich attacks/front-running/price distortion/unfair execution.

With greater data transparency these actions become more visible in public databases—pushing regulation toward formal discussion stages.

Future regulation likely starts with increased sequencing transparency—such as requiring disclosure of sequencing logic/whether private transaction channels are used/offering users “protected routing” options.

For builder concentration risks regulators may adopt anti-monopoly approaches like those in traditional finance—to prevent absolute control by few large sequencers.

Aggressive protocol-level MEV (especially sandwich attacks) may be weakened or banned under joint technical/regulatory pressure.

Overall regulation is moving MEV from an “unregulated technical arbitrage zone” into “financial infrastructure requiring transparency/fairness/anti-manipulation.”

Long-term Impact for Users & Protocols: From Passive Exposure to Active Management

In the long run—MEV will push users/protocols into greater maturity.

Impact on Users:

  • Wallets will default-integrate MEV protection routes (private RPC/delay protection).
  • Users won’t need deep understanding of MEV yet still enjoy fair execution.

Impact on Protocols:

  • AMMs/lending protocols will natively include anti-sandwich mechanisms/dynamic slippage protection/verifiable liquidation models.
  • Oracles/cross-chain bridges will strengthen sync/manipulation resistance under cross-chain MEV pressures.

Most importantly—protocols will begin treating MEV as a design variable—not just a side effect.

Ultimately—MEV will shift from external arbitrage space into an internally managed value flow within protocols themselves.

Disclaimer
* Crypto investment involves significant risks. Please proceed with caution. The course is not intended as investment advice.
* The course is created by the author who has joined Gate Learn. Any opinion shared by the author does not represent Gate Learn.