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Eden Network Announces Closure Amidst Competitive Pressures
Eden Network, a protocol designed to address the detrimental impacts of maximum extractable value (MEV), has officially announced that it will cease all operations. The decision comes as a response to mounting competition and escalating operational costs within the MEV-Boost relay and block-building sectors, leading the team to deem it unfeasible to continue.
Key Developments
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Immediate Shutdown: Following the announcement, all of Eden Network’s primary services—including Eden RPC, Eden Bundles, Mempool Stream, and Tx Explain—were taken offline.
- Token Distribution: As part of the closure strategy, the remaining treasury of 2,000 ETH will be distributed among EDEN token holders. In addition, all unvested tokens allocated to contributors have been burned.
Background and Transition
Launched in 2021, Eden Network’s mission was to provide Ethereum miners with a mechanism for optimising MEV capture, thereby offering them an additional revenue stream. The protocol aimed to balance miner incentives while ensuring fairer outcomes for Ethereum users by operating as a neutral intermediary to minimise harmful MEV practices.
In the aftermath of Ethereum’s transition to a proof-of-stake model in September 2022, Eden shifted its focus to become an MEV-Boost relay, facilitating transactions for validators and promoting equitable execution in decentralised finance (DeFi) markets. Despite a brief uptick in relevance, the changing economic landscape quickly proved detrimental for smaller players like Eden, as profitability increasingly favoured a few dominant entities, making it hard for Eden to sustain its operations.
Eden Network shared its decision process, stating, “After careful consideration and consultation with community members, a difficult decision has been made to retire Eden Network. There is consensus among those consulted that this is the right course of action given the circumstances.”
Token Retirement Program
In conjunction with the protocol’s discontinuation, a complete token retirement program will be instituted. Each EDEN token holder will receive a fixed distribution rate of 0.00001506 ETH per token from the remaining treasury, effectively winding down the project’s financial obligations. Moreover, all EDEN tokens and unvested contributions have been formally burned as part of the protocol’s conclusion.
As the events surrounding Eden Network unfold, stakeholders in the cryptocurrency and blockchain space are observing the broader implications for smaller protocols amid intense competitive dynamics.
Conclusion
Eden Network’s winding down serves as a cautionary tale in the rapidly evolving landscape of blockchain technology, illustrating the difficulties faced by smaller entities in a sector dominated by larger players. As the enduring volatility of cryptocurrencies remains apparent, market participants are encouraged to remain attuned to ongoing developments that could reshape the ecosystem in the future.
