Concerns on SUAVE’s effect on Ethereum security and total value extracted

Economics
1

Am curious to hear people’s thoughts on these two tweets:

https://twitter.com/eljhfx/status/1614877411211886593?s=20&t=MdfMrtaEvYn2X9114KvdrQ

https://twitter.com/eljhfx/status/1614873952760877056?s=20&t=MdfMrtaEvYn2X9114KvdrQ

To summarize, three of my concerns with SUAVE are:

  1. Value accrual will move upstream since SUAVE block builders are the point of entry and reduce Ethereum security
  2. Validators are expensive to run and you probably need an expectation of profit (or breakeven) to have security which would add additional costs on the “MEV supply chain”
  3. Depending on how consensus works, it won’t actually resolve censorship concerns past some notion of “plausible deniability” since bids can be encrypted before inclusion (but my guess is this can be circumvented by an off-chain mechanism pretty easily)

My guess is I’m probably wrong to have most if not all of these concerns, but wasn’t getting any answers on the Flahbots forums or twitter, so wanted to bring the conversation here.

Flashbots forum post: SUAVE's effect on Ethereum security and total value extracted - Research - The Flashbots Collective

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