How exactly is the winner of a bribe to miners determined?

The Flashbots Ship
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Hi! Can you guide me please about Flashbots MEV auction - how exactly is the winner of a bribe to miners determined?

I heard that it’s just blind - who gave more and that’s it, although the vast majority of auctions use the second price principle. Not just the highest bid wins, but taking into account the second bid. Example: I bid 100e and someone bid 27e. I win, but I pay 28e instead of 100e. Like this.

Also I have a question about the overall number of winners.
For example, the first winner pays 100e for 1 place but I’m satisfied with the price up to 10th place. What kind of mechanism is there for me to win 10th place for 10e (for example)? In case I don’t want to pay 100e for 1 place. I send a bribe to the miner, but I intentionally initially want not to be first, but second. And we’re talking about one block, of course.

It would be very much grateful if anyone could reply :black_heart:

1 Like
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It depends on the block builder and on its algorithm, some will just order txs by bribe and take the next non-conflicting highest bribe tx, others have a “value-over-gas” ranking, etc. Some block builders run multiple algorithms at the same time as well and take the highest value block in the end.

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Currently it works like this, generally speaking:

  1. Block builders submit bids (blocks) to relays, which compete on value for the proposer.
  2. When a proposer requests the top bid from a relay, the relay sends whatever is the bid with the highest proposer value it knows about at that time.