Rated recently released a new methodology “Exclusive Order Flow” which is determined by : Exclusive_order_flow == exclusive_txs / total_txs_packed_in_blocks
But i believe this takes into account transactions that also see the public mempool. There are wallets/addresses which may only transact once in a blue moon. So with this methodology they would be “exclusive” but they were in the public mempool. Therefore being non-exclusive order flow.
I would recommend only counting private transactions/addresses. That are being submitted to only 1 builder, which would no longer look at transactions included by the public mempool.
Hi @mc2ez! Thank you for opening up the discussion for this and sharing your recommendation.
There are wallets/addresses which may only transact once in a blue moon.
Maybe I’m being too pedantic here but we do try to solve for this by only taking addresses that appear in more than one block for a specific builder; so trying to exclude one-off addresses as much as possible.
But I believe your overall point is that we should look at the public mempool and only consider transactions that end up onchain but never appeared in the public mempool as exclusive order flow. Is my understanding correct?
Yes this is correct, because transactions that appear in the public mempool are fair game to ALL builders. Transactions that never appear in the public mempool are transactions which can be private/exclusive.