What is MEV and How Miners Earn More Than You Think
Mining is not just about block rewards and transaction fees. In reality, experienced network participants earn more than commonly assumed. One of the key sources of this ‘extra income’ is MEV. The term may be new to many, but it has long been a crucial part of blockchain economics, especially in Ethereum and other networks with active DeFi ecosystems.
In this article, we’ll explain what MEV is, how it works, why it’s not always good for regular users, and how it can be a significant source of income for miners, validators, and advanced participants.
What is MEV?
MEV stands for Miner Extractable Value, or, after Ethereum transitions to Proof-of-Stake, Maximal Extractable Value. It refers to additional profit that miners or validators can earn by managing the order of transactions within a block.
Simply put, miners don’t just randomly pack transactions into a block — they can:
- reorder transactions
- insert their transaction at the top
- exclude someone else’s transaction
This is especially important when there’s arbitrage, DeFi liquidations, or front-running opportunities (executing a transaction just before someone else to profit from a price change).
MEV in Action: Real Examples
1. Arbitrage Between DEXes
Suppose a token costs 100 USDC on Uniswap and 102 USDC on Sushiswap. A bot spots this, buys on Uniswap, and sells on Sushiswap. If a validator places their transaction at the top of the block, they profit more than from just transaction fees.
2. Front-Running
A user submits a large buy order. A miner sees it in the mempool and preemptively places their order first, betting the price will rise and they can resell immediately after.
3. Liquidations
In DeFi protocols, borrowers are liquidated when their collateral falls below requirements. Being first to execute a liquidation transaction guarantees a reward. Miners and validators who control transaction ordering benefit the most.
Who Profits from MEV?
- Miners and Validators — They control block ordering and can extract MEV or sell block space to specialized bots.
- Flashbots — Bots that scan the mempool for profitable strategies and send bundled transactions via specialized channels like Flashbots RPC.
- Arbitrageurs and Liquidators — Market participants optimizing their strategies using MEV extraction.
Why MEV Matters for Miners
MEV offers miners additional income beyond base block rewards. At peak times on Ethereum, MEV accounted for up to 20–30% of validator revenue. If you’re only collecting block rewards, you’re leaving money on the table.
With proper infrastructure, MEV can significantly increase mining (or staking) profitability without additional hardware investments.
The Dark Side of MEV
MEV is not just a profit opportunity but also a source of criticism. It can lead to:
- transaction delays and failures
- unpredictable DEX pricing
- increased mining centralization, favoring those integrated with Flashbots infrastructure
However, in most networks, MEV is a permanent feature, not a temporary glitch. The rational approach is to understand and leverage it wisely.
How Miners and Validators Can Earn MEV
Technically, you need to:
- use clients supporting MEV integrations (e.g., via Flashbots or MEV-Boost)
- join a mining pool optimized for MEV
- secure high block production performance with minimal downtime
If you’re mining or choosing a pool, connecting to EMCD with MEV support is an easy way to boost your earnings without extra costs.
Conclusion
MEV is not theoretical — it’s a real revenue stream already shaping blockchain economics. Ignoring MEV means missing out on income, especially in high-activity networks.
That’s why reliable infrastructure and partners matter. EMCD offers not just a stable mining pool, but an ecosystem that helps maximize revenue without unnecessary complexity.
