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Significant Drop in OFAC-Compliant Ethereum Blocks Reveals Reduction in Protocol-Level Censorship

The percentage of Ethereum blocks that comply with OFAC regulations has decreased significantly, with only 27% of blocks created using compliant relays on a daily basis compared to 80% in November 2022. This drop indicates a reduction in protocol-level censorship by Ethereum validators who rely on the MEV Boost mechanism to extract maximum value from block production. MEV Boost software is used by validators to increase their earnings and works alongside relay software, which creates transaction bundles for dispatch to validators. The shift towards non-censoring relay operators such as Ultra Sound Money and Agnostic has resulted in a decline in adoption rate among validators for Flashbots' relay operators.

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