Questions regarding the builder

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A few people have reached out with questions regarding how our new builder’s algorithm works. Let’s post them here so others can see the questions and answers in the open.

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Will tx cancellations be respected post Merge? You can probably make a more profitable block by intentionally ignoring same-nonce replacements and keeping the failing transaction.

It’s fairly standard practice at this point (even enshrined in Metamask), would be pretty jarring to suddenly remove this ability.

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Is effective gas price completely out the window?

For example if I backrun a swap and bribe 2 Eth using 1M gas, and an opponent bribes 1 Eth using 0.1M gas, who wins?

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  1. Does having nonce + EOA in the mempool of a transaction of a bundle affects scoring in anyways ?
    I’m asking because currently, the effective gas price formula will ignore all bribes paid through priority fees of a transaction if the nonce+EOA was seen in the mempool.

  2. Will the builder continue to accept private transactions ?

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Will tx cancellations be respected post Merge?

Yes, mempool logic is not changed. If tx replacement gets to the mempool in time it’s going to work, and I don’t see it changing at any point because it looks like a small optimization that’s relatively hard to implement.

Is effective gas price completely out the window
Effective gas price is never going to be completely out of the window.

There is a chance that it’s not going to be respected when there is a possibility to include alternative bundle with lower eff. gp. but with bigger overall profit (because of the higher gas usage at this eff.g.p. compared to the rest of the block). We run different builders and only one may do this kind of optimization and its not going to be on at the time of the merge.

Even if one builder will implement this optimization, it’s not going to be 100% perfect. Consider this to be a second order iteration on top of eff.g.p. ordering. Effective gas price is still the best bet to be included first.

Does having nonce + EOA in the mempool of a transaction of a bundle affects scoring in anyways ?

We run different builders. One will produce the same result as miners produce today (multiple merged bundles on top of the block) so it will use the same old scoring that does not count mempool txs. But other builder that can include bundles anywhere in the block will not consider it.

Will the builder continue to accept private transactions ?

Yes.

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