Ethereum inches even closer to total censorship due to OFAC compliance

Given that protocol-level censorship hampers the crypto ecosystems goal of a highly open and accessible finance, the community has taken Ethereums compliance with the standards set by the Office of Foreign Assets Control (OFAC). has followed the rise of In the last 24 hours, the Ethereum network found he enforced OFAC compliance on over 73% of its blocks.

In October 2022, Cointelegraph reported that censorship concerns have increased after 51% of Ethereum blocks were found to comply with OFAC standards. but, data mevWatch observed that daily OFAC-compliant block creation increased to 73% as of November 3rd.

Some OFAC-regulated MEV-Boost relays censor certain transactions. As a result, networks should employ uncensored MEV-Boost relays to ensure Ethereum (ETH) neutrality.

Ethereum validators can reduce OFAC compliance by dropping MEV-Boost configured relays that censor transactions, such as BloXroute Max Profit, BloxRoute Ethical, Manifold, and Relayooor.

Compliance with OFAC allows US government agencies to enforce economic and trade sanctions. Previously, the agency authorized Tornado Cash and some Ethereum addresses.

Currently, 45% of all Ethereum blocks are considered OFAC compliant.

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