The Development and Future Outlook of MEV in the Sui Network

In the blockchain industry, MEV( (Maximum Extractable Value) has become a topic of great concern due to its involvement in transaction ordering and arbitrage opportunities. To maintain the healthy development of the network, protect user transactions, and ensure transparency, the Sui network has been actively implementing various improvement proposals and mechanisms to regulate the development of its MEV ecosystem.

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Every transaction on the Sui network may bring new information and potential profit opportunities. Currently, Sui's MEV ecosystem is mainly shaped by the following aspects:

1. MEV Transaction Submission Mechanism
2. MEV Opportunity Release Mechanism
3. MEV Revenue Distribution Mechanism
4. User Trading Protection Mechanism

When designing these mechanisms, the Sui network adheres to the following principles:

• Prioritize user trading protection over maximizing extraction value.
• Network transparency takes precedence over private transactions with validators or relayers.
• Promote fair competition and curb junk trading activities through priority gas auction )PGA(.
• Encourage the distribution of rewards to participants aligned with the interests of the ecosystem

In terms of transaction submission, Sui adopts a priority gas auction mechanism. This mechanism determines the execution order of transactions based on gas prices, effectively preventing spam transactions while redistributing gas fees among participants. Currently, the Sui network can handle 15 transaction submissions per second, which means that the 70-millisecond transaction submission speed advantage may determine whether a transaction can be successfully executed.

To further optimize the transaction submission mechanism, Sui has introduced two important improvements:

1. SIP-19: Submit a batch of transactions through soft bundling to increase the probability of transactions being included in the same consensus submission.
2. SIP-45: Amplifying priority transactions through consensus to address potential jitter issues in consensus submissions.

When selecting the appropriate trading gas price, the client needs to consider factors such as priority gas auctions, consensus submission amplification, and avoiding congestion delays and cancellations.

To publish transaction information, the Sui network follows a series of steps, from the client submitting the transaction to its effects being observed by third parties. This process involves several components including RPC full nodes, validator nodes, consensus mechanisms, and checkpoint generation.

In addition, Sui is also designing a system for directly streaming consensus blocks to achieve low-latency user transaction access. This project is currently in the design phase and is expected to release relevant proposals within the next 1-2 months.

In terms of protecting user transactions, Sui adopts an externally member-driven transaction submission mechanism to provide users with natural front protection. At the same time, the developing Mysticeti fast path project will further enhance system efficiency, but it is also necessary to be aware of the potential front-running transaction risks.

Overall, the MEV ecosystem on Sui is still evolving. With the introduction of new mechanisms such as time-lock encryption and Mysticeti fast paths, MEV on Sui will continue to evolve, creating a more dynamic and transparent ecosystem. These innovations will reshape trade execution and security, bringing new opportunities and challenges to the Sui network.

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