Ethereum Decentralization Boosted by $1M PBS Foundation Grant

The PBS Foundation has announced the opening of applications for a substantial $1 million in grants. These grants are specifically aimed at fostering research and development in the area of proposer-builder separation (PBS) on Ethereum, marking a notable step in the evolution of the blockchain.

The initiative has received backing from a cadre of influential supporters in the blockchain space. Among them are Coinbase, Consensys, Fenbushi Capital, Flashbots, Paradigm, the Uniswap Foundation, and notably, Ethereum co-founder Vitalik Buterin. Their support underscores the importance of the PBS concept in the ongoing evolution of Ethereum.

The disbursement of these grants will be overseen by a council comprising representatives from various organizations deeply embedded in the blockchain ecosystem, including Blocknative, Consensys, the Ethereum Foundation, and Flashbots. At the helm of the foundation’s grant distribution is Eugene Leventhal, a member of the research group Metagov, whose expertise will guide the allocation of funds.

PBS, a concept first brought to light by Ethereum’s founder Vitalik Buterin, revolves around the idea of separating two key functions in the blockchain’s operation: the proposers, who submit transaction bundles to validators, and the builders, responsible for organizing these transactions. This separation is seen as a critical measure in promoting decentralization, as it diminishes the competitive edge that large, centralized mining pools currently hold.

The need for such an initiative became more pronounced following Ethereum’s transition to a proof-of-stake model, known as the Merge. However, this transition also brought to light new challenges, particularly the centralization of MEV-boost relays. These relays, which operate between block builders and validators, have been increasingly dominated by a handful of players, raising concerns about the equitable distribution and access within the network.

In response, the PBS Foundation is not only funding relayers with innovative approaches but also investing in community and educational outreach, enhancing data transparency on Ethereum’s mempool and blocks, and supporting research on how PBS can be further improved. This includes exploration into how these principles can be integrated not just on Ethereum’s primary network but also on its layer-2 networks.