On the Limits of Encrypted Mempools – A Response to a16z Crypto’s Analysts

Shutter responds to a16z Crypto's critique of encrypted mempools, arguing that such systems need not be perfect to deliver substantial value against malicious MEV. The response says Shutter's threshold-encrypted mempool has been live on Gnosis Chain since July 2024, and that encrypted mempools can reduce sandwich attacks and front-running while distributing transaction-ordering power. It addresses eight objections from a16z Crypto, including collusion in committees, metadata leakage, and censorship, and cites measures such as traitor-tracing schemes, batched decryption and Flashbots' FRP-18 proposal as responses. It also says BEAT-MEV benchmarks show decryption of a full Ethereum-sized block in about 3 seconds, well within the 12-second slot time.