Definition
MEV (Maximal Extractable Value) is a concept describing the maximum value that can be captured by parties with control over transaction ordering, inclusion, or exclusion within a block. It encompasses all forms of value extraction enabled by privileged positioning in the block production or sequencing process, beyond the standard protocol-defined rewards and fees paid directly by transacting users.
In Simple Terms
MEV is the extra value that block producers or other privileged actors can capture by choosing how to arrange, include, or leave out transactions in a block. It represents profit opportunities that exist purely because of control over transaction ordering on a blockchain.
Context and Usage
MEV is primarily discussed in the context of public blockchains where transaction ordering is economically significant. It appears in research on consensus design, transaction fee markets, and protocol incentives, and is frequently referenced in debates about fairness, censorship, and economic centralization among block producers and related actors operating on-chain.