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51% of Ethereum blocks are now OFAC compliant, raising censorship concerns




One month after the merger, 51% of Ethereum blocks were OFAC compliant. according to For Labrys blockchain development data, such as MEV-Boost relays capture market share.

On Twitter, users highlighted how the numbers are a milestone toward censorship, as more blocks come under scrutiny:

OFAC stands for Office of Foreign Assets Control, which is the entity responsible for imposing US economic sanctions, while MEV-Boost relays are central entities that act as trusted intermediaries between block producers and block builders. This way, all Ethereum proof of stake (PoS) validators can outsource their block production to other builders.

This metric tracks the number of blocks generated by OFAC-compliant MEV-Boost relays since the merger. As Ethereum upgraded to PoS consensus, MEV-Boost enabled a more representative distribution of block providers, rather than a small pool of miners under Proof of Work (PoW).

Speaking to Cointelegraph in September, Labrys CEO Lachan Feeney noted that in a state of strict oversight, this means that “no matter how long you waited, and no matter how much you paid, you never got to the point.” Those transactions are approved It will be included in the blockchain. “

Under the strict censorship scenario, “the nodes will be forced by regulation to discard any blocks that have any of these transactions in them.”


He also noted that even with soft oversight, when sanctioned transactions are eventually validated, it can potentially lead to long waiting times and high priority fees, making the user experience substandard.

According to Labrys’ page, there are currently seven major MEV-oost relays including Flashbots, BloXroute Max Profit, BloXroute Ethical, BloXroute Regulated, BlockNative, Manifold, and Eden. “Out of the 7 available master relays, only 3 are not controlled under OFAC compliance requirements. OFAC compliant relays will not include any transactions that interact with the Tornado Cash smart contract or other wallet addresses as defined by OFAC.” , the company said.