Institutions want their own rules inside $ETH blocks.

Normal txs on Ethereum are visible to everyone before inclusion. This pushed many institutions onto private chains with trash liquidity.

@ETHGasOfficial lets them book blockspace ahead of time. Txs skip the public mempool and get screened against their own sanctions rules first. Each institution stays in control without leaving Ethereum.

Being seen early is expensive for funds moving size. MEV bots watch the mempool, spot the trade, frontrun it, and pump the price you pay. With reserved blockspace, the fund buys a whole block and decides what goes ahead of their trade.

Institutions don't have to leave Ethereum for a private chain to set their own rules anymore.

This is how TradFi capital enters DeFi without getting rekt by MEV.