[TEMP CHECK] Should the SSV DAO Explore Public Goods Funding via Shared MEV from Based Rollups?

Governance Funding
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Quick Summary

As more L2 rollups adopt based sequencing, a bigger chunk of MEV (Maximal Extractable Value) will end up being captured on Ethereum L1, not by centralized rollup sequencers but by Ethereum validators.

That opens up a pretty interesting opportunity!

Could we redirect a small piece of that shared L1 MEV to fund Ethereum public goods like the SSV Network?

This Temp Check is just to get a sense of where the community stands on this idea. Just an open conversation.

Some Context

Today, most Ethereum validators use MEV-Boost to outsource block building to external builders. These builders order transactions to maximize MEV and offer bids to validators. Validators pick the best-paying block and include it. But this whole thing is based on off-chain trust between proposer and builder.

Now there’s a proposal, EIP-7732 to bring this system into Ethereum natively by enshrining Proposer-Builder Separation (PBS) directly into the protocol. This would remove the need for external tools like MEV-Boost and eliminate the trust assumptions between validators and builders, making block building more secure, fair and decentralized.

What is EIP-7732 All About?

Ethereum blocks have two sides:

Consensus: who made the block, and when.
Execution: what actually happened in the block (txs, etc.)

Right now, the proposer and builder do a “trust me” handshake. EIP-7732 (still in draft) proposes to change that and make it all trustless and built into the protocol.

Instead of sending the full block, the builder sends a receipt that says:

“I will reveal the block shortly and I have locked up X ETH to prove I’m serious.”

There is a small group of validators (called the Payload-Timeliness Committee, or PTC) that checks if the builder follows through. If not, the block is invalid and the builder gets slashed.

This change:

  • Makes things more secure and trustless
  • Speeds up block propagation
  • Helps avoid chain reorganizations
  • And most importantly, sets the stage for future upgrades like redirecting some MEV to public goods like SSV Network.

What Based Rollups Have to Do With that?

Based rollups let Ethereum L1 handle the sequencing of their transactions. That means MEV from rollups will also be captured on L1 by Ethereum validators and builders.

A few L2 rollups like Taiko and UniFi have already implemented based sequencing on Ethereum L1 and several development frameworks (Spire, Fabric, Gattaca) are working to enable more rollups to join soon.

Since that MEV will be part of Ethereum’s native block-building process (and not trapped in L2 silos), it gives us a unique chance to propose something like a small automatic MEV cut for public goods built right into the protocol or builder flow.

Why This Matters for SSV?

SSV Network powers Distributed Validator Technology (DVT), basically it makes Ethereum staking more decentralized and fault-tolerant.

Many see it as critical infrastructure for Ethereum’s validator layer. It’s increasingly recognized as a public good for the Ethereum ecosystem because it is open source, permissionless and beneficial to all validators and stakers.

If Ethereum’s core infrastructure like SSV could get funded directly from MEV that’s already being extracted, it would:

  • Help keep staking decentralized and healthy.
  • Support solo/community stakers in staying competitive.
  • Reinforce Ethereum’s validator layer (which benefits everyone).

Can We Start Sooner?

While enshrined PBS and based rollups are still in development, MEV-Boost is already used by most Ethereum validators today. It might be possible to work with the MEV-Boost ecosystem, builders, relays, or searchers to experiment with a voluntary or opt-in small MEV fee directed toward Ethereum public goods like SSV Network.

This could act as a stepping stone, helping us test the idea and build support for a future protocol-native version.

Why This Temp Check?

I’m not proposing a concrete system or fee mechanism here. This is just to ask:

  • Should SSV DAO explore this kind of MEV-based public goods funding, especially with enshrined PBS and based rollups on the horizon?

  • Should we get involved in Ethereum governance conversations and try to have SSV considered as a candidate for MEV-funded infrastructure support?

  • Should we team up with other public-good-focused projects to push for something broader?

What Do You Think? (Non-binding vote ideas)

  • Yes, I support exploring this idea and think SSV DAO should join the discussion.
  • I like the idea but think we should wait until PBS or based rollups are more mature.
  • I don’t think MEV should be redistributed to public goods this way.
  • I prefer the status quo, SSV DAO shouldn’t get involved.
0 voters
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SSV is not really “public goods” given that it was founded by a private company and has its own token underneath. Now, if it were to strip out the token from the DVT component and perhaps pursue tokenomics only from the bApp chain, then maybe it could be considered public goods.

And my above comment is not meant in any way to detract from the great piece of software that SSV is. It just isin’t public goods as I understand them.

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Hi @celticwarrior, I’m happy you bring that up. It’s a super valid point and one that comes up often when we talk about public goods in crypto.

If we look at the definition of public good from the Merriam-Webster Dictionary of Economics:

Public good: “A product that one individual can consume without reducing its availability to others and from which no one is excluded.”

SSV Network is accessible to all and benefit the wider ecosystem.

The way I see it, SSV Network fits the broader definition of a public good because it’s open-source, permissionless and benefits the whole Ethereum ecosystem.

Anyone can use the protocol and it doesn’t take anything away from others. Actually if more people use it, the stronger the network gets for everyone.

It started with a core team and there’s a token involved but that doesn’t automatically disqualify it from being a public good.

The DVT tech itself is freely available to any validator because the code is published on GitHub under a permissive open-source license, meaning anyone can view, use, fork or contribute to it.

By Vitalik’s own standard, SSV qualifies as a public-good protocol.

“A project can absolutely be a public good while things around it are private goods.”

“Open source projects seem to be by default public goods… the act of open-sourcing (as opposed to keeping it private) is certainly a public good with very diffuse benefit.”