Conforming to federal sanctions is a burden for most crypto ecosystems, limiting their potential impact. Investors in Ethereum, on the other hand, have a great deal of sway over how strictly the ecosystem follows the rules.
Sixty percent of all post-Merge Ethereum blocks are in accordance with OFAC sanctions imposed by the United States (OFAC). While many in the crypto community speak out against this change, they may be unaware of how they have contributed to Ethereum becoming fully OFAC compliant.
Cryptographic ecosystems and exchanges' reliance on censoring Miner extractable value (MEV) relays is a major threat to the credibility of Ethereum's neutrality. Many of the largest cryptocurrency exchanges and wallet providers use MEV relays to facilitate communication between block producers and block builders. These include Binance, Celsius Network, Coinbase, Kraken, and Cream Finance, among others. Staking users on Etheron platforms (illustrated above) that host MEV relays that censor Ethereum are complicit in this censorship. By switching to a MEV-boost relay that does not rely on censorship, crypto platforms can help fix the problem.
As of this writing, 67 of the most recent 100 blocks of Ethereum were found to be in compliance with OFAC regulations.
Investors should be aware that protocol-level censorship undermines crypto's promise of democratizing access to financial services. Investors and service providers should therefore prioritize MEV-boost relays that do not engage in censorship. Four years after going dormant, two addresses in the Ethereum ecosystem woke up to send 22,982 ETH.
Unknown "whales" sent 13,103.99 ETH to Genesis and 9,878 ETH to Poloniex, two cryptocurrency exchanges.
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