Priority Gas Auction (PGA) is a mechanism used to determine the order in which transactions are included in a block and executed.

In some blockchain networks, miners have the discretion to choose the order of transactions within a block. This discretion creates an opportunity for miners to prioritize transactions that offer higher transaction fees (gas fees) in exchange for including those transactions first or in a specific order.

Miners can exploit this by reordering transactions to their advantage, potentially extracting more MEV from the transaction process. For example, miners can front-run transactions by placing their own transactions ahead of others to profit from price changes or arbitrage opportunities. PGA is a concept closely related to MEV because it represents the mechanism by which miners can maximize their extraction of value from transaction ordering.

« Back to Glossary Index