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Route auction rewards via ShMonad - #8

Merged
marshabl merged 4 commits into
yes-shmonadfrom
mev-via-shmonad
Jan 13, 2026
Merged

marshabl merged 4 commits into
yes-shmonadfrom
mev-via-shmonad

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@0x1NotMe

@0x1NotMe 0x1NotMe commented Jan 12, 2026 •

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Summary

  • Route full bid amount through ShMonad sendValidatorRewards
  • Apply ShMonad protocol fee (10%) via PROTOCOL_FEE_RATE
  • Remove direct MEV split/coinbase tip in auctioneer

Example 10% ShMonad fee (feeRate = 10%)

Assume:

  • MEV amount = M
  • ShMonad feeRate = f = 10%
  • Coinbase mevCommissionRate = c

Flow:

Auctioneer
  └─ sendValidatorRewards(M, f=10%)
       ├─ Protocol fee (ShMonad revenue): M * f
       └─ Validator payable (escrowed):   M * (1 - f)

On validator crank:
  └─ handleMEVPayable(value = M*(1-f))
       ├─ Coinbase commission: M*(1-f)*c
       └─ Coinbase rewards:    M*(1-f)*(1-c)

Example with M=100, f=10%, c=20%:

  • ShMonad fee: 10
  • Validator payable: 90
  • Coinbase commission: 18
  • Coinbase rewards: 72

@0x1NotMe
0x1NotMe requested a review from marshabl January 12, 2026 09:28
@marshabl
marshabl merged commit e09c5dc into yes-shmonad Jan 13, 2026
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2 participants