Front-running and mempool sniping have become important topics in the Magic Eden Bitcoin community. In this comprehensive guide, we aim to empower users with a deeper understanding of these challenges and provide insights into the measures being taken to address them.

Front-running occurs when the mempool prioritizes transactions with higher fees, leading to unexpected delays. Typically rare, this phenomenon is more likely to happen when a transaction lingers in the mempool for an extended period. Importantly, neither the buyer nor the seller is adversely affected, as funds remain secure.

Recent instances of mempool sniping were noted during popular Launchpad mints, raising concerns about the integrity of Ordinal trades. Mempool sniping, or front-running in the context of Ordinals, occurs when sophisticated actors replace broadcast transactions intended for purchases, manipulating the inscription process.

Most Ordinals marketplaces utilize PSBTs for trades. The seller signs a partially signed Bitcoin transaction, awaiting completion by the buyer before the marketplace broadcasts the complete transaction. The vulnerability arises as the seller's partially signed transaction can be signed by any buyer, allowing manipulation by replacing the buyer's details with their own, leveraging higher fees for priority confirmation.

In response to these challenges, we're taking immediate steps to address them:

For our launchpad, we are deploying a solution to prevent mempool sniping on future drops. Mint transactions will now be signed on demand, enhancing security.

Mempool sniping is a crucial consideration for marketplace trading. We're actively exploring solutions and invite a collaborative conversation with builders, marketplaces, and users to strengthen the ecosystem.

If a purchase is sniped from the mempool, the original buyer will be refunded the BTC paid, but the inscription won't be received. We acknowledge the need for clearer communication to users about the status of their transactions to mitigate confusion.

As Magic Eden Bitcoin evolves, the community's collective awareness and sophistication in dealing with front-running and mempool dynamics are crucial. We commit to transparency, ongoing improvements, and collaborative efforts to enhance the overall transaction experience.

Stay tuned for updates as we implement features to further safeguard your transactions on Magic Eden Bitcoin. If you have any questions or concerns feel free to reach out to our support team via the chat widget on our website.