# PERCH Proposal: Request for validators to run and test Proposer MEV-Protect **URL:** \ **Category:** Proposals\ **Created:** [July 17, 2025, 11:20pm UTC](https://research.lido.fi/t/perch-proposal-request-for-validators-to-run-and-test-proposer-mev-protect/10372 "2025-07-17T23:20:26Z")\ **Posts on this page:** 5\ **Page:** 1

**Author:** ![jessenia](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/jessenia/32/5534_2.png) [@jessenia](https://research.lido.fi/u/jessenia)\ **Post date:** [July 17, 2025, 11:20pm UTC](https://research.lido.fi/t/perch-proposal-request-for-validators-to-run-and-test-proposer-mev-protect/10372/1 "2025-07-17T23:20:27Z")

## Summary This proposal seeks whitelist approval for Lido validators to integrate the proposer MEV-Protect feature from bloXroute and Ultrasound relays: Proposer MEV-Protect: A relay-side mechanism that ensures validators receive a fair share of block value. It enforces a minimum return of 90% of the block value to the proposer. If a block pays less, it must include an additional fee to be accepted. This model rejects underpaying blocks and introduces a fair revenue-sharing structure for blocks that fall below the threshold. The system encourages builder-proposer alignment, improves fairness in MEV distribution, and is projected to increase Execution Layer rewards by 10%. * * * ## Technical Specification ### Proposer MEV-Protect Proposer MEV-Protect is a relay-level safeguard that enforces a minimum value return of 90% from builders to proposers, or requires the inclusion of an additional fee. Activation – Validators must connect only to relays that support the Proposer MEV Protect feature (currently limited to bloXroute and Ultrasound relays, with others expected to follow). This is enabled by appending `?proposer_mev_protect=true` to the relay URL. Policy – - Blocks paying ≥ 90% of value are accepted with no fee. - Blocks returning \< 90% are automatically rejected unless an additional fee is included. - When accepted, the additional fee is distributed as follows: - ⅓ of the builder profit goes to the validator - ⅓ goes to the relay - ⅓ remains with the builder * * * ## Operational Transparency & Incident Handling bloXroute maintains a transparent policy around incident handling. In the event of a missed proposal caused by its infrastructure, bloXroute: - Proactively investigates the root cause. - If found to be at fault, deploys a fix and issues a refund of up to 10 ETH and. - Publishes a post-mortem summary for any confirmed incidents. - If the cause is shared with a third party (e.g., a builder), bloXroute coordinates directly to resolve the issue and ensure fair compensation. * * * ## Testing and Reliability bloXroute’s relay has been thoroughly tested in both testnet and mainnet environments. Testnet Availability: - Holesky: [http://holesky-proxy.blxrbdn.com:18552/](http://holesky-proxy.blxrbdn.com:18552/) - Hoodi: [http://hoodi-proxy.blxrbdn.com:18552](http://hoodi-proxy.blxrbdn.com:18552) * * * ## Proposer MEV-Protect Pilot We request that Lido allocate a subset of validator keys to participate in a pilot program evaluating the impact of Proposer MEV-Protect. Most large Lido node operators intend to participate in the pilot using their own non-Lido public keys. It is expected to be straightforward for them to additionally assign a portion of their Lido-operated keys to the trial. This will enable a representative evaluation of performance and value outcomes within Lido’s validator set. * * * ## Revenue and Governance Model There is no additional cost to use the Proposer MEV-Protect feature. The system enforces fee-sharing for blocks below the 90% threshold (for the pilot, we will support a list of whitelisted builders). In those cases: - 33% of retained builder value is sent to the validator - 33% is sent to the relay - 33% remains with the builder * * * Impact Analysis: Lido Validator Rewards Date Range Analyzed: April 16, 2025 – May 29, 2025 Total Blocks Analyzed: 279,000 Lido-Specific Metrics: - Total Lido Blocks: 71,742 - Original Rewards: 3,577 ETH - Protected Rewards: 3,939 ETH - Projected Increase: +10% in proposer payments This suggests Lido would have received an additional 10% in ETH rewards with MEV-Protect enforcement during the observed period. The graph below illustrates the additional rewards Lido could have earned across the top blocks in the specified time range: ![Screenshot 2025-07-04 at 11.55.42 AM](https://europe1.discourse-cdn.com/flex013/uploads/lido/original/2X/2/2361b85e31950aaf4d9d730da1e5f77c69373bcf.png) * * * ## Proposed Integration & Implementation To enable Proposer MEV-Protect, Lido node operators must connect only to relays that support the feature and add the query parameter `?proposer_mev_protect=true`. For example, to enable it on the bloXroute relay: ```auto -relays \ http://0x8b5d2e73e2a3a55c6c87b8b6eb92e0149a125c852751db1422fa951e42a09b82c142c3ea98d0d9930b056a3bc9896b8f@bloxroute.max-profit.blxrbdn.com?proposer_mev_protect=true&id=validator-name,\ http://0x8b5d2e73e2a3a55c6c87b8b6eb92e0149a125c852751db1422fa951e42a09b82c142c3ea98d0d9930b056a3bc9896b8f@bloxroute.regulated.blxrbdn.com?proposer_mev_protect=true&id=validator-name \ ``` - No hardware upgrades or local software changes are required. - Integration takes effect immediately, with performance benefits visible shortly after activation. * * * ## Ethics and Values bloXroute’s infrastructure is built to support validators of all sizes—ranging from individual operators to institutional node runners. Proposer MEV-Protect is designed to enhance performance, transparency, and ecosystem alignment without adding operational burden. bloXroute’s relays are publicly accessible, open to third-party builders, and maintained with a strong commitment to transparency. The codebase is open-source and integrates seamlessly into standard validator workflows, promoting decentralization and builder diversity. Proposer MEV-Protect was developed to foster alignment between builders and validators—not to penalize. By introducing transparent thresholds and value-sharing expectations, it encourages collaborative participation in the Ethereum MEV ecosystem. * * * ## Call to Action We invite the Lido DAO to approve and enable participation in Proposer MEV-Protect. This feature strengthens validator infrastructure and establishes clear standards for value distribution—without introducing operational complexity. The feature is non-invasive and requires only a configuration update to the MEV-Boost sidecar (e.g., MEV-Boost, Vouch, or Commit-Boost). Validators simply append bloXroute’s relay URL—along with a query parameter to enable MEV-Protect—to the relay arguments. It is designed to work seamlessly with Lido’s validator set across all clients and geographies. bloXroute is committed to supporting Lido’s mission of secure, decentralized, and high-performing Ethereum staking. We welcome the opportunity to collaborate further, share trial metrics, and tailor the rollout to Lido’s validator footprint and governance processes. * * * ## Additional Resources - Documentation: [Proposer MEV Protect](https://docs.bloxroute.com/bsc-and-eth/block-builders-and-validators/proposer-mev-protect) - GitHub: [bloXroute-Labs/mev-relay](https://github.com/bloXroute-Labs/mev-relay) - Email: [hello@bloxroute.com](mailto:hello@bloxroute.com) ---

**Author:** ![alextes](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/alextes/32/4205_2.png) [@alextes](https://research.lido.fi/u/alextes)\ **Post date:** [July 18, 2025, 3:41pm UTC](https://research.lido.fi/t/perch-proposal-request-for-validators-to-run-and-test-proposer-mev-protect/10372/2 "2025-07-18T15:41:04Z")

great to see proposal submitted and ditto on wanting to represent proposer interests and put some power in their hands. we’re working to support the experiment 👷 exciting! ---

**Author:** ![jessenia](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/jessenia/32/5534_2.png) [@jessenia](https://research.lido.fi/u/jessenia)\ **Post date:** [July 23, 2025, 2:52pm UTC](https://research.lido.fi/t/perch-proposal-request-for-validators-to-run-and-test-proposer-mev-protect/10372/3 "2025-07-23T14:52:08Z")

**Clarification on Impact** : The estimated +10% increase in proposer payments refers specifically to a 10% uplift on the proposer rewards portion of total staking rewards. Given proposer rewards typically represent ~12.5% of total rewards, this translates to an overall increase of approximately 1.25% in total rewards. At a 3% APY baseline, this corresponds to an incremental cost of roughly 3.75 basis points of total rewards (or APY). ---

**Author:** ![sergey](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/sergey/32/5620_2.png) [@sergey](https://research.lido.fi/u/sergey)\ **Post date:** [July 24, 2025, 11:57am UTC](https://research.lido.fi/t/perch-proposal-request-for-validators-to-run-and-test-proposer-mev-protect/10372/4 "2025-07-24T11:57:34Z")

We ([P2P.org](http://P2P.org)) would like to participate on testing that! ---

**Author:** ![mxs](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/mxs/32/3977_2.png) [@mxs](https://research.lido.fi/u/mxs)\ **Post date:** [August 14, 2025, 9:20pm UTC](https://research.lido.fi/t/perch-proposal-request-for-validators-to-run-and-test-proposer-mev-protect/10372/5 "2025-08-14T21:20:28Z")

Kiln is interested in participating in the pilot.