BNB Smart Chain Proposes BEP 341 to Boost Transaction Throughput with Consecutive Block Production

BNB Smart Chain has introduced BEP 341, a new proposal aimed at significantly enhancing the transaction processing capacity. This proposal marks a shift from the current single-slot priority system to a model where validators can produce consecutive blocks.

Key Details of BEP 341

The primary objective of BEP 341 is to optimize block production efficiency and substantially increase transaction throughput on BSC. By allowing validators to produce consecutive blocks, the blockchain can better meet the increasing demands of its active ecosystem. However, this approach also introduces potential risks such as Maximal Extractable Value (MEV) abuse, which necessitates careful governance and monitoring.

Essential Parameters of BEP 341

The block production process under BEP 341 revolves around two critical parameters:

- Number of Consecutive Blocks (n): This parameter defines the number of consecutive blocks each validator can produce within an epoch.
- AntiMEV Ratio: To counteract potential MEV abuses, this parameter adjusts the split of transaction fees to the SystemRewardContract. As the consecutive block priority of a validator increases, the transaction fees split to the SystemRewardContract also rise linearly, capped by the systemRewardAntiMEVRatio. Initially set at 0, any adjustments to this parameter will require governance approval.

Impact of Consecutive Block Production

Currently, validators on BSC have priority block-producing rights for a single slot, rotating in a fixed order. This existing system results in a split transaction processing limit. BEP 341 proposes that validators receive priority block-producing rights for a continuous series of \( n \) slots per round, thus optimizing transaction processing efficiency. This could significantly boost Transactions Per Second (TPS), especially when the number of consecutive blocks is between 3 to 5.

Implementation Specifications

- Priority block-producing rights allocation will be pre-defined for each epoch to ensure fairness.
- Validator sets will rotate each epoch to maintain network security and decentralization.
- Block producers must produce fewer than \( n \) blocks within the previous \(((validatorN/2+1)*n-1)\) historical blocks to prevent control by less than half of the nodes.

Mitigating MEV Abuse with AntiMEV Ratio

BEP 341 introduces measures to prevent MEV extraction during consecutive block production. By increasing the transaction fees' split to the SystemRewardContract in proportion to the block number, and capping it with the systemRewardAntiMEVRatio, BEP 341 ensures prompt transaction packaging and mitigates MEV risks. The effectiveness of the systemRewardAntiMEVRatio will grow as more validators adopt Proposal Builder Separation (PBS).

Benefits of BEP 341

- Enhanced Block Production Efficiency: Consecutive block production allows for significant improvements in transaction throughput to support BSC's expanding ecosystem.
- Promoted Decentralization: Community-driven governance ensures any changes are made with the consensus of BNB delegators, fostering a decentralized and resilient network.
- Fair Revenue Distribution: The AntiMEV mechanism ensures equitable revenue distribution among validators and delegators, promoting fairness within the network.

BNB Smart Chain emphasizes that changes to the number of consecutive blocks and the AntiMEV ratio will require community approval, reflecting its commitment to involving users in decision-making processes.