• Flashbots warns that MEV threatens long-term scalability, calling for PBS.

• Validator activity and client diversity signal growing network strength.

• Ethereum outpaces Solana in fees, stablecoin flows, and ETF inflows.

• L2s and ZK infrastructure accelerate real-world adoption and developer access.

Flashbots released a landmark thesis arguing that MEV imposes a structural limit on Ethereum’s scalability—where added throughput simply enables greater extraction. Their preferred mitigation, proposer-builder separation (PBS), offers a roadmap to preserve decentralization and reduce economic centralization. This thesis re-centers PBS as a crucial protocol goal ahead of future hard forks.

Following discussions at Berlinterop, Potuz observed that most client teams now favor enshrined PBS (ePBS) over other block-building alternatives. He urges wallet teams, relay providers, and staking pools to voice their needs before design choices become irreversible—advocating for more inclusive governance across ecosystem layers.

@terencechain analyzed recent validator trends, noting over 82,000 new deposits using the modern EIP-6110 pathway, compared to only 541 legacy deposits via Eth1. The validator entry queue has grown steadily since late May, suggesting sustained confidence in Ethereum’s long-term staking rewards and security model.

Erigon v3.0.6—codenamed “Otterly Odyssey”—is now live, with mandatory updates for the Amoy testnet. This release introduces support for the Bhilai fork, optimizes block search indexing, and improves code signing flows. It exemplifies the importance of client diversity and the ecosystem’s ongoing investment in performance improvements.

@daddysether highlights that L2s like Arbitrum, Base, zkSync, and Polygon are leading the tokenization of real-world assets (RWAs), from treasuries to invoices. Polygon’s PoS chain is even transitioning to a validium model to reduce costs. Ethereum L2s are rapidly becoming the dominant venue for institutional asset issuance.

zkVerify launched a new incentivized testnet that challenges developers to bypass traditional ZK burdens and optimize verification throughput. By simplifying on-chain verification, this effort expands access to zero-knowledge tooling, making it easier to build scalable privacy-preserving applications across the Ethereum stack.

ERC-0 v2.5 introduces improvements to a novel contract pattern that stores zero bytecode until activation. This release refines deployment mechanics and resolves calldata replay bugs, furthering Ethereum’s efforts to reduce L1 gas costs and support efficient contract instantiation strategies across L2s and modular appchains.

Luganodes explains how institutional validators are analyzing PBS economics, MEV spread management, and relay optimization strategies. Their transparent approach supports smaller operators in navigating the evolving block-construction market, reinforcing decentralization while boosting block rewards.

@ripdoteth reports that ETH ETFs grew 339% faster than BTC ETFs last week, relative to each asset’s market cap. The ETF boom is partly fueled by Ethereum’s staking narrative, offering yield and utility. This shift in institutional preference may signal a broader rebalancing toward Ethereum in crypto-native and traditional portfolios.

@UncleRewards notes a striking divergence in capital flows: Ethereum gained $1 billion in stablecoin inflows last week, while Solana lost $50 million. This shift reaffirms Ethereum’s dominance in stablecoin liquidity and its position as the backbone of the on-chain economy.

@Ethprofit aggregates wallet and DeFi analytics to show more than $2.5B in stablecoin inflows into Ethereum in just two weeks—outpacing entire quarterly flows from 2024. These capital surges are driving new lending, DEX volume, and staking opportunities across the ecosystem.

A new EIP proposes paginating block receipts to address sync lag and bandwidth issues caused by rising calldata volumes. By chunking receipts into smaller parts, light clients and mobile wallets can sync more efficiently—critical for scaling Ethereum’s accessibility and decentralization.

@caitlinxyz announces the 3rd Annual Paradigm Fellowship, a three-day research retreat on the Northern California coast. Targeted at early-stage builders, this gathering emphasizes open-ended exploration, protocol R&D, and founder matchmaking—helping cultivate the next wave of Ethereum-native innovation.

• 📰 Subscribe to receive Ethereum Daily

• 🔁 Share this post with fellow builders