Crypto Gloom

Realized value (Rev)

What does Rev mean?

Realized extraction value (Rev) The total value of the user actually paid is paid to include transactions in the blockchain. It’s not about the opportunity to make money. It is about how many actually Payment and acquisition actually.

REVs look at the actual values ​​obtained from the MAXIMAL EXTRACTABLE VALUE (MEV) strategy. ~ Later Actual consideration Blockchain Same conditions:

  • Network congestion
  • Gas bill
  • Effective Tester or miner fee
  • Transaction cost
  • First fee

The simple way to think about this is:
If MEV is a potential reward, the rev is actually left after all the costs are paid.

Rev operation method (with simple examples)

Let’s take it Sandwich attack For example.

  1. The searcher is A transaction They can benefit.
  2. They make a deal at once after that transaction.
  3. This is a MEV opportunity.

But here is the twist.
Many bots can see the same opportunity. To win, you have to face each other. It means payment Additional To the valid tester to include transactions first.

So the searcher pays as follows:

  • Gas bill (To run a deal)
  • Priority (“Tips” for the validation insurer to get a choice)

that rotation Profit is profit Addicted Pay to get a chance.

Rev VS. MEV: What is the difference?

side

MEV

rotation

meaning

Maximum

Real value has been realized

Concentrate

Theoretical interest

Actual results

include

Strategic design

Strategy + Execution Cost

use

Developer, search person

Analyst, economist

MEV is like seeing an open treasure chest.
REV is the amount of money that actually takes home after tax and tolls.

Some people say that REV is important

Rev supporters show how many real economic activities are happening in the blockchain. In other words, it is a Cash Metric.

They say Rev to us:

  • How many people are there to pay for the block space?
  • Demand for execution of high value -added transactions
  • Actual profits are supplied to the validation tester. mine worker

It sounds loudly the sound of rev Discounted cash flow (DCF) In traditional finance.

But there is a push bag

Many people in Crypto World are not sold using REVs as serious evaluation indicators.

Here is the main criticism:

  • Speculative bubbles: When memes coins or volatile assets are popular, Revs tend to surge.
  • It does not reflect all efforts. Searches often run several failed attempts to win MEV. These losses do not appear in the rev.
  • Some chains do not support MEV at all. Bitcoin Rev is 0. But it still has a strong value.
  • REVs can reflect non -efficiency. High rotation can mean that the network is not thriving and is not optimized.

Rev has limitations

Let’s explain in more detail:

limitation

influence

Failed transactions are not included

Ignore the actual cost of the user

Internal MEV (internal app) is not calculated.

That report can be done

Rev does not guarantee value to token holders

It is not always connected to the token performance.

MEV compression through a better tool

You can reduce future rev levels

Should I evaluate the blockchain using REV?

Maybe -but not by itself. Rev is a part of the larger picture.

Here is Can help:

  • When comparing L1 blockchain There are similar cases of use.
  • When trying to measure the validation or miner revenue.
  • When analyzing how much demand for complex trading strategies.

But always use it context.

If you do not understand the calculation method, Rev can misunderstand or misuse. In particular, if the MEV is processed in a different way, it does not show the entire economic footprint of the blockchain.

Revs are useful metrics.right. It tells us how much value is flowing through the MEV strategy and how many people should pay. But there are limitations and should not be used alone.

To fully assess the blockchain project, combine the Revine Rev with the following:

  • Trading volume
  • TVL (total value lock)
  • Validation
  • User growth
  • Data by app

Other block chains provide value in different ways. REVs are just a tool to help you understand where the value is going.