Does Bitcoin Collect Secret Agent Fees Like DeFi?
Does Bitcoin Collect Secret Agent Fees Like DeFi?
So, let’s chat about MEV. You know, the snazzy term that sounds like a character from a sci-fi movie. In the wild world of crypto, MEV (Miner Extractable Value, if you’re wondering) typically refers to those sneaky little bots running around on chains like Ethereum. These bots love to meddle with transaction orders during DEX trades and liquidations, essentially squeezing extra value out of unsuspecting users. Yikes!
But wait! Did you know that Bitcoin has its own version of this sneaky behavior? Yep! It’s chilling in the mempool and policy layer, just doing its own thing. Think of it as Bitcoin’s quieter cousin to the rambunctious MEV antics happening in DeFi. While Ethereum’s bots are zooming around front-running trades, Bitcoin miners and pools are playing a more strategic game of chess, using fee signals and mempool policies to decide which transactions get a VIP pass first.
Now, here’s a juicy tidbit: Bitcoin Core v28 switched on full replace-by-fee (RBF) mempool policy by default! The nerdy talk means that if you want, you can totally swap in a higher-fee version of your transaction over an older one. Miners using that shiny Core or similar software are stuck with this default, but they’re free to put their own spin on things too.
However, the public mempool is just one piece of this transaction puzzle. There are secret paths and wallet controls that also decide which lucky transactions take the stage. In the land of Bitcoin, miners and pools are like the judges of a talent show, deciding who makes it into the next performance – also known as a block!
Bottom line: Bitcoin has its own low-key version of MEV. Just like a stealthy ninja, minor fee changes, clever package construction, and secretive pathways can make your transaction leapfrog over others, even if they were sent first.
When miners assemble their block templates, it’s akin to a well-timed dance-off. Here’s how it goes down:
Compared to Ethereum’s loud and proud MEV dance party, where searchers flex their skills to extract value through bots and smart contracts, Bitcoin keeps it cool and composed. There’s no front-running; instead, miners and pools tinker with translation orders, all thanks to fee incentives and occasional off-chain sweeteners. This subtlety makes Bitcoin’s MEV much less noticeable to the average Joe.
Now, let’s sprinkle some recent stats on top! According to YCharts, the average on-chain fee has dipped to around $0.68 – a steal compared to last year! In October, the mempool showed wild swings, with brief bursts and empty spots. You see, during those quiet times, a slight fee adjustment can kick your transaction to the front of the line!
Remember some headlines? Fees were a mere 0.96% of block rewards in June 2025 – the lowest since early 2022. And check it out, the hashrate is hanging steady around 1.1 zettahash per second, which means there’s still a good ol’ competition for incremental advantages in this game!
With ancestor-feerate mining and package relay, fee auctions are getting cleverer. Nowadays, it’s not just every transaction for itself – it’s more of a package deal! Thanks to Bitcoin Core’s updates, those block templates are considering the whole family – parent and child packages – when deciding what gets included.
Oh, and if you’ve ever found yourself stuck in the mempool traffic, you might have heard of CPFP – Child Pays for Parent. It’s a neat trick that helps rescue those stuck parents by allowing children (transactions) to pay their way into blocks!
Bitcoin’s full-RBF game means you could swap a low-fee transaction for a higher fee one to jump ahead of others. Those small, cheeky tweaks can sometimes come in handy!
Your wallet might look like a party planner trying to squeeze every guest into the next block. With fee boosts and package maneuvers, savvy users can nudge their transactions ahead in a subtle but powerful way! Direct-to-pool accelerators can even be your secret weapon in a crowded mempool.
Picture this: Alice sends her transaction first but at a low fee, while Bob, the clever fox, boosts his fee just a smidge. Thanks to BIP125, Bob’s faster fee swap can leapfrog ahead and boom – he’s in the next block before Alice knows it!
What about that stuck parent? Slap on a high-fee child transaction, and voilà! You just gave your transaction a golden ticket into the block party.
As template visibility sneaks in, it’s easier to spot these cheeky ordering games. Bitcoin Optech has been putting in work to detect feerate fluctuations in block templates, letting us keep an eye on those sneaky tactics used by miners.
In summary, while the Bitcoin show might not be as flashy as Ethereum’s, it definitely has its own set of secretive moves. Miners and pools aren’t out to front-run your swaps, but they are quietly choosing winners from your mempool using clever fee structures, package selections, and sometimes even side routes.
By the way, Liam Wright, a.k.a. “Akiba”, is pouring the tea on all things crypto. As Editor-in-Chief at CryptoSlate, he’s on a mission to keep you in the know about decentralized tech and its ability to spark change. To stay updated on the latest from the crypto world, make sure you follow our daily updates on X!