Ethereum OPAC Compliant blocks in decline after touching 80%

Hull Invest

according to Recent Data for MEV Watchover the 24-hour timeframe, 64.44% of Ethereum blocks conformed to the OFAC standard.

However, Ethereum educator and investor sassal.eth reported OFAC compliance surpassed 80% on Dec. 9 before dropping to 65%.

The Office of Foreign Assets Control (OFAC) is responsible for enforcing economic sanctions imposed by the United States, and the MEV-Boost relay acts as a trusted intermediary between block producers and block builders.

Since Merge, this metric tracks the number of blocks built by OFAC-compliant MEV-Boost relays.

Through OFAC compliance, the agency can enforce economic and trade sanctions in accordance with its foreign policy and national security objectives. For example, this institution has authorized Tornado Cash and several Ethereum addresses in the past.

Sanctioning your network can result in high latency, high priority charges, and a poor user experience.

Reasons for high OFAC compliance

Among the reasons sassal.eth has highlighted the high number of OFAC-compliant blocks are Ethereum’s heavy reliance on flashbots, the growing number of uncensored relays coming online, and the increasing number of Delays in accepting submissions.

according to mevboost.orgthere are 10 active relays, among which 75.83% of all relay blocks are built exclusively with Flashbot.

Flashbots is a research and development organization that seeks to mitigate the potential harm associated with maximum extractable value (MEV).

Additionally, the MEV Watch censorship leaderboard includes Stakehound, Ether Capital, the Celsius network, and even Binance.

MEV Watch says that if users bet on top offenders on this list, they will directly contribute to Ethereum’s censorship.

Despite the threat of outright censorship, some Twitter users believe Ethereum will never be 100% OFAC compliant.

Posted in: Ethereum, Web3

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