Ethereum Builders Debate Payment Methods in ePBS Upgrade
Builders Weigh Costs in Enshrined Proposer-Builder Separation
Ethereum builders are debating how to handle payments in the proposed enshrined proposer-builder separation (ePBS) system, which formally separates block proposing from block building to improve efficiency. A recent discussion focuses on whether protocol-backed payments require too much locked capital, making trusted arrangements more competitive.
In the ePBS design, validators propose blocks while builders assemble transactions. The system includes two payment forms: collateral-backed payments using deposited Ethereum, and trusted payments relying on the builder's promise through another route.
Key Points from the Lido Discussion
- Collateral-backed payments demand builders maintain idle Ethereum reserves, which can be costly if blocks fail or offers are canceled.
- Trusted payments may reduce these burdens by relying on the builder's reputation and alternative payment methods.
- Relay connections, which organize block auctions, could remain central despite open bidding options.
- Glamsterdam, an Ethereum upgrade, is expected on mainnet in the fourth quarter of 2026 after testing on devnets.
Lido Contributors Highlight Builder Costs
In a Lido discussion from September 8-11, contributor Jason Vranek argued that builders face three potential costs with protocol-backed payments. They must hold Ethereum reserves to fund payments, cover unusually valuable blocks, and potentially pay for failed deliveries. These costs could affect how much builders are willing to pay for block-building opportunities.
Vranek suggested that trusted arrangements might lower these costs, leaving more room to pay proposers. However, whether this results in higher payments depends on available amounts and the counterparty's performance.
How ePayments Function in the Proposed System
The EIP-7732 design, currently under review, specifies that proposers include a builder's signed commitment in consensus blocks, with transaction payloads following separately. For collateral-backed payments, the protocol checks the builder's balance and records pending payments. Trusted payments depend on the builder honoring a promise, which can include an ordinary on-chain Ethereum transfer.
This design protects proposers if builders fail to deliver blocks, but builders take on exposure to paying without successful delivery.
Market Dynamics and Relay Usage
Titan Builder stated that it expects validators to continue using relays, which organize auctions and handle publication. This suggests relay connections may persist even with open bidding options. Mike Neuder's analysis indicates that established trust between proposers, builders, and relays will likely remain, but he labeled this expectation as speculation.
The Ethereum Foundation's September 7 priorities identify fork-choice enforced inclusion lists (FOCIL) as a key mechanism for another part of the roadmap, allowing validators to impose inclusion requirements on builders' blocks.
Confirmed Facts and Uncertainties
What is confirmed: The ePBS proposal includes two payment types. Lido contributors are discussing payment options ahead of a DAO vote. Glamsterdam is testing on devnets, with mainnet expected in Q4 2026. Relay connections are used by builders like Titan Builder.
What is still unclear: The exact impact of payment methods on proposer earnings remains uncertain. Market outcomes and whether trusted payments will consistently yield higher payments are not confirmed. Operator behavior and final payment limits are subject to further discussion.
Why This Matters for Ethereum's Block Market
This debate affects the efficiency and fairness of Ethereum's transaction processing. If trusted payments prove less costly, they could change how builders compete and pay proposers. However, reliance on trusted arrangements introduces counterparty risk compared to protocol-backed guarantees.
The choice between payment methods influences capital allocation, builder participation, and the overall health of the block-building market.
What Happens Next in the ePBS Timeline
Lido's discussion is part of a process leading to a future DAO vote on payment policies. Glamsterdam's mainnet launch is anticipated in the fourth quarter of 2026, but no confirmed date has been set. The EIP-7732 design remains under review, with further development expected.