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Eden

Eden

Eden is a typical blockchain network.

Introduction

In a typical blockchain network, a series of transactions which alter the global state of the network

are bundled into groups (“blocks”) which are then appended to the consensus chain (thus, a chain

of blocks). The specific mechanism for selecting who has the right to create the block varies from

network to network. In a proof-of-work system there is a competitive game to produce some

computationally expensive result. In proof-of-stake, the producer of the block is probabilistically

selected from a set of economically staked participants.

In both systems, the producers of blocks typically have various freedoms allowed by the network.

Two common freedoms are the choice of selecting which transactions are included in the block, and

the order that their state transitions take effect. Miner Extractable Value [DGK+19] refers to any

benefit the block producer can realize for themselves by exercising these freedoms.

The particular type of MEV that can be realized varies from the fairly benign, e.g. taking

advantage of a freely available arbitrage opportunity, to the extremely aggressive, e.g. frontrunning and sandwich attacks [ZQT+20] or malicious chain reorganizations, e.g. time bandit attacks.

Ultimately, all MEV can be interpreted as a tax on network participants.

MEV Ecosystem

Under EIP-1559’s base fee burn mechanism, Ethereum block producer profits may become much

smaller and harder to predict. While historically block producers have realized MEV passively via

transaction fees earned from bots outbidding each other for priority inclusion in the next block

(so-called Priority Gas Auctions or “PGAs”), mining pools have implemented solutions to more

directly extract MEV.

1

Services such as Flashbots, MiningDAO, and CowSwap are examples of products within the

Ethereum ecosystem that either funnel MEV towards or away from block producers. In particular,

as of July 21, 2021 a majority of Ethereum network hashrate has migrated to MEV-Geth, a fork

of the reference go-ethereum client (a.k.a “geth”) created by Flashbots. MEV-Geth allows third

parties to engage in a sealed-bid auction to order mempool/privately submitted transactions with

the goal of increasing the Ether balance transferred to the block producer’s address, i.e. directly

extracting MEV.

The four key stakeholders in the MEV ecosystem are block producers, bots, applications, and

general network users. Existing approaches to MEV skew incentives in favor of some subset of

these stakeholders, and as a result, there is competition among network participants around the

redistribution of value extracted through on-chain ordering opportunities.

Eden Network takes a user-focused approach to the MEV problem, and includes stronger incentives for all stakeholders driven by a protocol token. It comprises a novel transaction ordering

mechanism and a private relayer that any user, application, or bot can leverage in order to obtain state guarantees around submitted transactions. Honest block producers are rewarded in the

protocol token for mining as per the ordering mechanism.

Eden Network

Network Objectives

The broad aims of the network are to:

1. Protect users from malicious MEV (frontrunning, sandwich attacks, etc.) and reduce the

negative externalities MEV has on Ethereum

2. Improve earnings for block producers and increase consensus-level security against block

reorganization

3. Tokenize access to MEV, and redistribute value to network stakeholders

Block Construction

The primary coordination unit among block producers, users, and bots will be the EDEN token,

which is a migration of the existing ARCH token. The basic hierarchy of a transaction is as follows,

and is illustrated in Figure 1:

1. Create a new class of transactions that get priority above all other transactions in Eden

Network block producers’ blocks

(a) There are a set number (3

1

) of “slots”, each with a unique index (i.e. slot 0, slot 1, etc.)

that indicates their position within blocks

i. At any time, each slot is owned by exactly one account (the “slot tenant”), who has

the right to set a “delegate address” for that slot

ii. Transactions to (Ethereum transaction field to) the delegate address will be included

in the slot

iii. The delegate address may be either an EOA (a regular account) or a smart contract

address

2

iv. Transactions submitted directly to the Eden Network relay that revert (fail) have

the option of not being included in the block, saving the sender gas fees

(b) Each slot has a maximum gas limit (1.5M1

)

i. Transactions to the delegate address that do not fit in the slot due to the gas limit

will be treated according to the regular transaction inclusion criteria

ii. In the event that a slot’s gas limit is not reached, the remainder of the gas space is

usable by the rest of the block

(c) Users reserve these slots via a continuous auction mechanism known as a Harberger tax

i. Slot tenants are taxed on a linear basis at some tax rate (3.3%1

) per day on the

initial principal of their stake. The taxed amount is burned, and the tenant loses

their claim on the slot once their entire balance is depleted (301 days as per proposed

tax rate)

ii. Any user may become a slot tenant by staking a minimum of 110%1

the EDEN

staked by the existing slot tenant at the time the existing slot tenant bid for their

slot

iii. In the event that another user outbids the current slot tenant, the original slot tenant

is immediately eligible to claim any untaxed balance they have in the smart contract

(or increase their stake to reclaim the slot). Being outbid is the only mechanism to

recover an untaxed balance

iv. Once a slot tenant is outbid, they simply lose the slot instead of being pushed to the

following slot

2. Block producers are also allowed to accept transaction bundles. Bundles are be included after

any priority queue transactions, but before transactions from regular Ethereum/Eden users.

There is an overall gas limit for bundles (4M1

)

3. Regular users will also be able to stake EDEN in exchange for transaction ordering priority

and extra transaction handling options

(a) Regular transactions (whether from the Eden network or public mempool) will be ordered

first by staked EDEN balance then by ETH tip, and they will come after the priority

queue transactions + transaction bundles

(b) Users must stake a minimum of 1001 EDEN in order to gain the benefit of special

transaction handling options

i. Transactions submitted directly to the Eden Network relay by users with at least the

minimum stake will not be gossiped to other nodes to provide for enhanced privacy

and attack protection

(c) In future releases of the protocol, an unbonding period will be applied to the EDEN

tokens staked by any given address in this portion of the block

Timeline

September 8, 2021
Eden raises a $17,400,000 seed round from Alameda Research, Andre Cronje, Defiance Capital, GSR, Jump Capital and Multicoin Capital.

Funding rounds

Patents

Further reading

Title
Author
Link
Type
Date

2022 Proof of Stake Expansion - Eden Network - Medium

Luke Lichtenstein

Web

February 8, 2022

So You've Been Sandwiched - Eden Network - Medium

Luke Lichtenstein

Web

February 4, 2022

Documentaries, videos and podcasts

Title
Date
Link

Hong Kong's Animoca Brands Fully Acquires Lyon-Based Eden Games

April 13, 2022

Need for Speed gets Hong Kong's Animoca in driver's seat

April 12, 2022

Tackling Miner Extractable Value w/ Caleb Sheridan, Core Developer of the Eden Network

January 7, 2022

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