In this engaging episode of WGMI, we delve into the intricate world of Miner Extractable Value (MEV). We begin by demystifying the concept of MEV and the issues surrounding it, explaining its relevance to blockchain technology and cryptocurrencies. We then transition into the mechanisms of MEV extraction, using practical examples from Decentralized Exchanges (DEXs) to paint a clear picture of how arbitrage, front-running, and back-running operate in this ecosystem.

Our exploration continues with an analysis of the applicability of MEV to Bitcoin mining before shifting focus to the concept of 'searchers' and their role within the MEV landscape. We highlight various forms of MEV attacks, including NFT MEV, liquidations, Uncle-Bandit, and Time-Bandit attacks, elucidating how they operate and the potential impact they can have on the blockchain network.

After a comprehensive discussion on the potential pros and cons of MEV, we discuss ways DeFi users can protect themselves from the invisible tax of MEV, illustrating how the reorganization of transactions can be rendered moot.

We then take a deep dive into the latest developments in Ethereum, focusing on the proposed MEV-burn upgrade. We discuss how this upgrade aims to address the MEV issue and its potential impact on the Ethereum network, particularly with regard to chain instability, reduced security, and inflated gas prices.

Finally, we discuss the proposed proposer-builder separation (PBS) upgrade, providing insight into how it aims to tackle transaction discrimination and the extraction of MEV.

Tune in to this comprehensive episode of WGMI for a detailed understanding of MEV, its implications on the blockchain ecosystem, and the proactive measures being undertaken to address it.