Disintegrating searchers and builders

In this talk Quintus Kilbourn (Flashbots) presents new research on implementing refunds as part of blockspace auctions. These refunds change blockspace auctions from a first price mechanism towards a VCG-like mechanism where searchers get some of their bid back if their bundles are critical towards winning the auction between builders. This in turn incentivizes searchers to submit bundles through the refund mechanism rather than through other builders that run standard first price mechanisms, fighting against the natural incentives for builders and searchers to verticalize. Quintus describes the current status of this work and areas for future research.

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