Ethereum arbitrage study shows builders earn $5 for each $1 burned

Blockchain data provider Bitquery analyzed a 30‑day window of Ethereum activity and found that for every US$1 of ETH base‑fee burned, builders received roughly US$5.24 in arbitrage‑related receipts.

Allocation of surplus

The study broke down the measured surplus as follows:

• 49.3% to block‑assembly (builder receipts)
• 9.4% to burned fees (base‑fee destruction)
• 41.3% to trading operators

How builder payments work

In the Flashbots model, builders collect transactions, construct blocks and bid for validator blockspace through relays. The builder designates a fee‑recipient address, includes a payment to the validator’s chosen recipient, and may forward part of the receipt onward. The study counts only the initial builder receipt, not the portion passed to validators, so the final profit distribution remains unclear.

Implications for ETH holders

EIP‑1559 separates the base fee (which is burned) from the priority fee (paid to validators). While burning reduces ETH supply, it does not directly benefit passive holders. The study highlights that a larger inclusion payment can increase participant earnings without a proportional increase in burned ETH.

Limitations of the analysis

The figures represent a sampled surplus, not total network revenue, and cover a period ending August 31, 2026. The allocation does not account for onward transfers from builders to proposers, nor does it include operating costs. A consistent, longer‑term comparison would be needed to assess trends in profits or supply impact.