Priority Gas Auction Cadence and Searcher Competition: Evidence from Flashblocks on Base
In briefShorter Auction Windows and Arbitrage Competition: Base Flashblocks Evidence
SummaryThe paper studies how Base's July 2025 switch from one 2-second priority gas auction to ten 200 ms auctions changed bidding by automated arbitrageurs (searchers). Using on-chain data and a difference-in-differences design, it estimates a 0.187 gwei fall in the effective priority fee, which it identifies as the causal effect. The revert-rate response is reported only descriptively.
WhyUses Base's switch from one 2s auction to ten 200ms auctions as a natural experiment, with difference-in-differences identifying fee compression and a new auction model.