Bitcoin
MEVpool, The Best Bandaid We Have For MEV
Published
2 weeks agoon
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admin
Miner Extractable Value. That phrase is essentially one of the biggest fundamental risk spaces that exist for blockchain based systems. The original conception of a blockchain included incentives for miners (or other consensus participants deciding transaction ordering) to earn revenue based on whatever initial block subsidy is entered into circulation each block in addition to fees paid by users to have their transactions confirmed.
These two things are no longer the only sources of revenues that incentivize the actions of miners. More complicated contracts and protocols now exist to facilitate the creation of, and exchange between, different assets hosted on a blockchain. These contracts, by design, allow open access to anyone. If you have a required asset, and can fulfill the exchange conditions specified, any user can unilaterally interact with the contract or protocol to exchange assets.
Given that miners ultimately decide what transactions are accepted into blocks, this gives miners preferential access to “jump the line” in interacting with such contracts and protocols. This presents a serious problem, depending on the degree of complexity involved in successfully extracting value from different contracts or protocols.
This creates a huge centralization pressure on mining the more complicated these contracts and protocols become. Miners have the ability to collect all of this value, but in order to do so they actually need to analyze the current state of these contracts. The more complex the contract, the more complex and costly the analysis, and the more centralization pressure it creates for miners.
This is horrible for censorship resistance.
Proposer Builder Separation
Ethereum is the poster child of MEV gone wrong. Due to the high complexity of contracts deployed on Ethereum, the amount of MEV created on that chain has been very large. Naturally they have come up with attempted solutions in response to the issue.
Proposer Builder Separation sought to mitigate the centralization risks of MEV by creating separation between the two roles involved in moving the blockchain forward. Builders (block template creators) handle the role of actually assembling transactions into blocks, and Proposers (miners/stakers) choose between the available block templates to select the most profitable one. The idea behind the proposal is that we can let the centralization affect template producers, but safeguard miners/stakers from it. As long as there is a competitive market for template production, things should still be secure.
In practice this isn’t what has happened. The reality is that only a few competitive Builders exist, and when the most profitable template producers decide to censor something, it is effectively censored by every miner/staker that chooses to use those profitable block templates. Given that it is economically irrational to not choose the most profitable template, this doesn’t truly solve the risk of censorship.
MEVpool
The MEVpool proposal by Matt Corallo and 7d5x9 is an attempt to modify the PBS proposal for Bitcoin in a way that actually does provide mitigation for the risk of censorship.
The main difference between PBS and MEVpool is the outsourcing of template construction isn’t total, in MEVpool miners still ultimately construct the end block template themselves. They simply outsource the process of selecting the subset of transactions that optimize MEV extraction, including those in block templates they construct themselves. This aims to allow miners to maximize their cut of MEV while still maintaining the freedom to include whatever transactions they want, as opposed to the binary choice of accepting censorship for maximal profit or forgoing profit to prevent censorship under PBS.
The proposal requires setting up marketplace relays to host orderbooks where MEV extractors can post their proposed transactions and the fees they will pay to miners for including them in a block. They would allow the extractor to define conditions under which they will pay for transaction conclusion, i.e. only if they are the first transaction to interact with a specific contract in the block. Marketplaces would also support sealed or unsealed orders, i.e. sealed requests are orders where the transaction proposed isn’t actually revealed to the miner until they mine the block.
How does that work? All miners need is the hash of a transaction to include in the merkle tree to start mining, they don’t need the full transaction until they find a valid block and go to broadcast it. But they do need to know that the transaction is valid. This is the role the marketplace relays have to fill.
There are two ways they can go about doing this. First, the simplest way is for them to be a purely trusted third party. Extractors of MEV would submit their transactions to relay operators, and miners would connect to these relays. Afterwards they would request the list of Sealed and Unsealed bids from the marketplace operator, including the hashes necessary to include Sealed bids, and have a custom piece of software construct the block template. Once they successfully find a valid blockheader, they would send the block minus the missing data to the relay.
The relay would then include the full Sealed transactions, broadcast the block themselves, and then send the miner the full Sealed transactions so they could broadcast the block as well. During this entire process the MEV extractor’s fee would be held in escrow by the marketplace relay, and released to the miner after they find a valid block.
This requires putting a lot of trust in the relay, both on the part of miners as well as the MEV extractors paying them.
The second option is the use of a Trusted Execution Environment (TEE) to handle the construction of block templates on the part of miners, as well as handling the encrypted Sealed bids. Miners would run the custom template software and a Bitcoin node inside the TEE. After miners have received the Sealed and Unsealed bids and constructed their block, the TEE would sign an attestation of the block and provide the marketplace relay with a session key.
The marketplace would encrypt the Sealed transactions and a transaction paying the miner its fee to the session key. After the miner finds a valid blockhash meeting the difficulty target, the TEE would decrypt the Sealed transactions and allow them to broadcast the full block and collect their fee from MEV extractors. In this scenario everyone involved has to trust the TEE to remain secure.
The End Result
The end result of this is very likely in my opinion to be similar to PBS on Ethereum. There are only a handful of large Builders constructing MEV optimized templates for miners, and they all have transactions directly submitted to them out of band from the mempool. MEVpool marketplace relays, both variations, are trusted to publicly broadcast fee information about orders submitted to them to allow normal users to make proper fee estimation. If large marketplaces were able to attract transaction submissions not sent elsewhere and withheld that fee data, this could affect users at large.
Also, while it does allow miners the freedom to select their own transactions outside of the MEV optimized subgroup, it still leaves room for large marketplaces receiving private transaction submissions to leverage that position. Such marketplaces could coerce miners into censoring other transactions by withholding their orderbook data from them if no competitor existed with access to the same information.
Ultimately I do not see this as a solution to the issue of MEV, more of a bandaid or mitigation of the worst possible effects of it. It does not completely remove the centralization risks and pressures, but it does ameliorate them in certain areas.
This is a guest post by Shinobi. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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Bitcoin
Michael Saylor’s MSTR Purchases 130 Additional BTC
Published
3 hours agoon
March 17, 2025By
admin

Strategy (MSTR) marginally added to its massive bitcoin (BTC) holdings, selling a modest amount of its preferred stock (STRK) to fund the acquisition.
The company last week purchased 130 bitcoin for roughly $10.7 million, or an average price of $82,981 each, according to a Monday morning filing. The so-called “BTC yield” is 6.9% year-to-date, according to Strategy.
Company holdings are now 499,226 bitcoin acquired for a total of $33.1 billion, or an average cost of $66,360 per token.
This latest purchase was funded by the sale of 123,000 shares of STRK, which generated about $10.7 million of net proceeds. Strategy last week announced a mammoth $21 billion at-the-market offering of that preferred stock.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
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Bitcoin
Bitcoin To $10 Million? Experts Predict Explosive Growth By 2035
Published
5 hours agoon
March 17, 2025By
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In a new publication titled The Mustard Seed, Joe Burnett—Director of Market Research at Unchained—outlines a thesis that envisions Bitcoin reaching $10 million per coin by 2035. This inaugural quarterly letter takes the long view, focusing on “time arbitrage” as it surveys where Bitcoin, technology, and human civilization could stand a decade from now.
Burnett’s argument revolves around two principal transformations that, he contends, are setting the stage for an unprecedented migration of global capital into Bitcoin: (1) the “Great Flow of Capital” into an asset with absolute scarcity, and (2) the “Acceleration of Deflationary Technology” as AI and robotics reshape entire industries.
A Long-Term Perspective On Bitcoin
Most economic commentary zooms in on the next earnings report or the immediate price volatility. In contrast, The Mustard Seed announces its mission clearly: “Unlike most financial commentary that fixates on the next quarter or next year, this letter takes the long view—identifying profound shifts before they become consensus.”
At the core of Burnett’s outlook is the observation that the global financial system—comprising roughly $900 trillion in total assets—faces ongoing risks of “dilution or devaluation.” Bonds, currencies, equities, gold, and real estate each have expansionary or inflationary components that erode their store-of-value function:
- Gold ($20 trillion): Mined at approximately 2% annually, increasing supply and slowly diluting its scarcity.
- Real Estate ($300 trillion): Expands at around 2.4% per year due to new development.
- Equities ($110 trillion): Company profits are constantly eroded by competition and market saturation, contributing to devaluation risk.
- Fixed Income & Fiat ($230 trillion): Structurally subject to inflation, which reduces purchasing power over time.
Burnett describes this phenomenon as capital “searching for a lower potential energy state,” likening the process to water cascading down a waterfall. In his view, all pre-Bitcoin asset classes were effectively “open bounties” for dilution or devaluation. Wealth managers could distribute capital among real estate, bonds, gold, or stocks, but each category carried a mechanism by which its real value could erode.
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Enter Bitcoin, with its 21-million-coin hard cap. Burnett sees this digital asset as the first monetary instrument incapable of being diluted or devalued from within. Supply is fixed; demand, if it grows, can directly translate into price appreciation. He cites Michael Saylor’s “waterfall analogy”: “Capital naturally seeks the lowest potential energy state—just as water flows downhill. Before bitcoin, wealth had no true escape from dilution or devaluation. Wealth stored in every asset class acted as a market bounty, incentivizing dilution or devaluation.”
As soon as Bitcoin became widely recognized, says Burnett, the game changed for capital allocation. Much like discovering an untapped reservoir far below existing water basins, the global wealth supply found a new outlet—one that cannot be augmented or diluted.
To illustrate Bitcoin’s unique supply dynamics, The Mustard Seed draws a parallel with the halving cycle. In 2009, miners received 50 BTC per block—akin to Niagara Falls at full force. As of today, the reward dropped to 3.125 BTC, reminiscent of halving the Falls’ flow repeatedly until it is significantly reduced. In 2065, Bitcoin’s newly minted supply will be negligible compared to its total volume, mirroring a waterfall reduced to a trickle.
Though Burnett concedes that attempts to quantify Bitcoin’s global adoption rely on uncertain assumptions, he references two models: the Power Law Model which projects $1.8 million per BTC by 2035 and Michael Saylor’s Bitcoin model which suggests $2.1 million per BTC by 2035.
He counters that these projections might be “too conservative” because they often assume diminishing returns. In a world of accelerating technological adoption—and a growing realization of Bitcoin’s properties—price targets could overshoot these models significantly.
The Acceleration Of Deflationary Technology
A second major catalyst for Bitcoin’s upside potential, per The Mustard Seed, is the deflationary wave brought on by AI, automation, and robotics. These innovations rapidly increase productivity, lower costs, and make goods and services more abundant. By 2035, Burnett believes global costs in several key sectors could undergo dramatic reductions.
Adidas’ “Speedfactories” cut sneaker production from months to days. The scaling of 3D printing and AI-driven assembly lines could slash manufacturing costs by 10x. 3D-printed homes already go up 50x faster at far lower costs. Advanced supply-chain automation, combined with AI logistics, could make quality housing 10x cheaper. Autonomous ride-hailing can potentially reduce fares by 90% by removing labor costs and improving efficiency.
Burnett underscores that, under a fiat system, natural deflation is often “artificially suppressed.” Monetary policies—like persistent inflation and stimulus—inflate prices, masking technology’s real impact on lowering costs.
Bitcoin, on the other hand, would let deflation “run its course,” increasing purchasing power for holders as goods become more affordable. In his words: “A person holding 0.1 BTC today (~$10,000) could see its purchasing power increase 100x or more by 2035 as goods and services become exponentially cheaper.”
To illustrate how supply growth erodes a store of value over time, Burnett revisits gold’s performance since 1970. Gold’s nominal price from $36 per ounce to roughly $2,900 per ounce in 2025 appears substantial, but that price gain was continuously diluted by the annual 2% increase in gold’s overall supply. Over five decades, the global stock of gold almost tripled.
If gold’s supply had been static, its price would have hit $8,618 per ounce by 2025, according to Burnett’s calculations. This supply constraint would have bolstered gold’s scarcity, possibly pushing demand and price even higher than $8,618.
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Bitcoin, by contrast, incorporates precisely the fixed supply condition that gold never had. Any new demand will not spur additional coin issuance and thus should drive the price upward more directly.
Burnett’s forecast for a $10 million Bitcoin by 2035 would imply a total market cap of $200 trillion. While that figure sounds colossal, he points out that it represents only about 11% of global wealth—assuming global wealth continues to expand at a ~7% annual rate. From this vantage point, allocating around 11% of the world’s assets into what The Mustard Seed calls “the best long-term store of value asset” might not be far-fetched. “Every past store of value has perpetually expanded in supply to meet demand. Bitcoin is the first that cannot.”
A key piece of the puzzle is the security budget for Bitcoin: miner revenue. By 2035, Bitcoin’s block subsidy will be down to 0.78125 BTC per block. At $10 million per coin, miners could earn $411 billion in aggregate revenue each year. Since miners sell the Bitcoin they earn to cover costs, the market would have to absorb $411 billion of newly mined BTC annually.
Burnett draws a parallel with the global wine market, which was valued at $385 billion in 2023 and is projected to reach $528 billion by 2030. If a “mundane” sector like wine can sustain that level of consumer demand, an industry securing the world’s leading digital store of value reaching similar scale, he argues, is well within reason.
Despite public perception that Bitcoin is becoming mainstream, Burnett highlights an underreported metric: “The number of people worldwide with $100,000 or more in bitcoin is only 400,000… that’s 0.005% of the global population—just 5 in 100,000 people.”
Meanwhile, studies might show around 39% of Americans have some level of “direct or indirect” Bitcoin exposure, but this figure includes any fractional ownership—such as holding shares of Bitcoin-related equities or ETFs through mutual funds and pension plans. Real, substantial adoption remains niche. “If Bitcoin is the best long-term savings technology, we would expect anyone with substantial savings to hold a substantial amount of bitcoin. Yet today, virtually no one does.”
Burnett emphasizes that the road to $10 million does not require Bitcoin to supplant all money worldwide—only to “absorb a meaningful percentage of global wealth.” The strategy for forward-looking investors, he contends, is simple but non-trivial: ignore short-term noise, focus on the multi-year horizon, and act before global awareness of Bitcoin’s properties becomes universal. “Those who can see past the short-term volatility and focus on the bigger picture will recognize bitcoin as the most asymmetric and overlooked bet in global markets.”
In other words, it is about “front-running the capital migration” while Bitcoin’s user base is still comparatively minuscule and the vast majority of traditional wealth remains in legacy assets.
At press time, BTC traded at $83,388.

Featured image created with DALL.E, chart from TradingView.com
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Bitcoin
Dormant whale sends 300 BTC to FalconX as Bitcoin nears $84k CME gap
Published
6 hours agoon
March 17, 2025By
admin
A whale that has been dormant for 1.5 years has deposited 300 BTC to crypto brokerage FalconX alongside 1,050 BTC to two other wallets.
According to data on SpotOnChain, an anonymous whale with $85.7 million in Bitcoin (BTC) holdings just sent 300 BTC through digital asset broker FalconX. At current market prices, the transaction is worth around $25.1 million in BTC.
In addition to FalconX, the whale also sent 1,050 BTC, equal to around $87.2 million, to two fairly new wallets. At press time, the address still holds around $12.55 million worth of Bitcoin, or equal to 150,000 BTC.
The last transaction recorded on-chain from the whale occurred on Aug. 18, 2023 when it received 1,500 BTC from market marker Cumberland at a price of $26,353, worth $39.5 million at the time. This means that the address has been dormant for nearly two years.
According to data from crypto.news, Bitcoin has gone down by 0.44%. BTC is currently trading hands at $83,613. Bitcoin has been on a turbulent path in the past month, going down by more than 14%.

In the past day, Bitcoin reached a peak price of $84,693 before falling further to a $82,061 low and maintaining its value at around $83,000. In fact, BTC’s dive to the $84,000 threshold fills the CME price gap, which sets the stage for another potential price climb.
A CME gap is the disparity between the closing price of Bitcoin on the Chicago Mercantile Exchange or CME and its opening price when trading resumes. It is often used as an indicator for corrections after a sharp drop in the market. The CME gap is often referred as a “magnet” for Bitcoin prices.
Bitcoin’s recent price drop filling the CME gap and the notable BTC whale movements could suggest increased market activity is on the horizon. Traders are already anticipating the next market moves that could very well influence Bitcoin’s price trajectory and overall market sentiment.
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