Ethereum validators can earn extra “MEV revenue” when proposing a block. Where does this money come from?
Definition: Before signing the block header, validators cannot access the specific transactions in the block. This prevents them from seeing the contents and stealing MEV opportunities from builders.
Why this works: Building the most profitable block requires specialized computing and access to transaction sources. PBS allows ordinary validators to earn returns close to those of professional players without needing these capabilities.
For blocks produced through MEV-Boost, builders must use $ETH to pay a bid to the validator proposing the block.
Be cautious when you come across projects claiming to offer high returns.