# Panel I Based Rollups and the MEV Gambit | Pragma Istanbul 2023

- Channel: [ETHGlobal](https://streameth.org/ethglobal)
- Date: 2024-10-09
- Duration: 41:34
- Topics: Ethereum, MEV, shared sequencer, rollups, based rollups, Taiko, Optimism, Astria, Nethermind, Justin Drake, Pragma Istanbul, decentralized sequencing, encrypted mempool, delay encryption, MEV minimization, cross-domain MEV, modular Ethereum, sequencing layers, L2 infrastructure, cross-chain liquidity, chain abstraction, suave, MEV rebates, governance, composability, crypto UX, Ethereum scaling, L1-L2 bridges, crypto game theory
- Watch: https://streameth.org/watch/yt-nwOKxw7WicE
- YouTube: https://www.youtube.com/watch?v=nwOKxw7WicE

## Description

What happens when rollups sacrifice MEV for decentralization? In this fireside chat at Pragma Istanbul 2023, Ethereum Foundation’s Justin Drake moderates a deep dive into shared sequencing, based rollups, and the future of MEV between Tomasz Stanczak (Nethermind), Josh Bowen (Astria), Daniel Wang (Taiko), and Mark Tyneway (Optimism).

This panel explores the emerging design space of shared sequencing, cross-domain MEV, the trade-offs of based rollups, and how sequencing layers and cryptographic tools like encrypted mempools will shape Ethereum’s scaling and UX. Topics include network effects, MEV minimization, cross-rollup composability, decentralized sequencing, liquidity flows, and game-theoretic governance between rollups and sequencers.

Whether you're building a rollup, researching sequencing architecture, or trying to understand MEV economics, this conversation is an essential guide to the rapidly evolving world of modular Ethereum and shared infrastructure.

00:00 Intro: Key takeaways from previous panel
00:44 Homogeneous vs heterogeneous shared sequencing
01:57 Long-term consolidation vs short-term experimentation
02:43 External vs based sequencers explained
04:13 Panelist intros and extra takeaways
05:46 Challenges in open collaboration across L2s
08:14 Rethinking L1-L2 relationships for cross-chain
09:30 Taiko's minimalist approach and booster rollups
10:11 What is a based rollup and the MEV Gambit?
11:25 How to split cross-domain MEV fairly?
13:05 Governance complexity with many rollups
14:54 Power dynamics in sequencer-rollup negotiations
15:51 Simple calculations, complex MEV splits
17:32 Lack of global price reference in MEV splits
19:07 Social scalability limits for shared sequencers
20:20 Business logic vs technical MEV distribution
22:08 When giving up MEV makes sense
23:38 Data limitations and oracle manipulation
24:19 Can MEV go to zero over time?
26:16 DeFi on-chain reduces arbitrage MEV
28:03 MEV shifts from proposers to other actors
29:59 Unsophisticated flow and persistent MEV
31:04 Do encrypted mempools just shift MEV operators?
32:57 Delay encryption and decentralized mempools
34:04 Injection MEV still survives encryption
35:15 Sandwich protection in decentralized sequencing
36:44 Suave and trusted RPCs for user flow
38:10 What decentralized sequencing really means
39:13 Permissionless vs permissioned sequencer sets
40:29 Using governance and reputation in sequencing
41:05 Wrap-up and closing remarks

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _  

🇹🇷 *Pragma Istanbul*
The sixth edition of Pragma took place in Istanbul in November 2023 with a curated series of high-quality talks that sparked thought and discussion. Pragma Istanbul 2023 was an opportunity discuss the future of web3 and reflect on the past. Watch the full Pragma Istanbul 2023 playlist here: https://youtube.com/playlist?list=PLXzKMXK2aHh4rHV1H4J7y0wDok4bIS17t&si=lb8ttkU1HS2tpnUP

ETHGlobal's Pragma series takes place in cities around the world, and is designed to be a different kind of event. Pragma is a one-stage conference with founders-only on stage, bringing together a small group of curated attendees and speakers to discuss the future of web3 and reflect on the past. 

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _  

✅ Follow *ETHGlobal*
X: https://x.com/ETHGlobal​
Warpcast: https://warpcast.com/ethglobal
Website: https://ethglobal.com
YouTube: https://www.youtube.com/c/ETHGlobal

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _  

_Are you interested in Ethereum development and entrepreneurship?_
👉 Sign up for the next ETHGlobal event: https://ethglobal.com/events
🎁 Get exclusive access and perks with ETHGlobal Plus! https://ethglobal.com/plus
📣 Want us to throw an event in your city? Tell us where! https://ethglobal.com/city

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _