Summary

Sub-slot execution (TOOL, by NuConstruct) divides each 12-second Ethereum slot into sub-slots of ~200ms–1 second. After each sub-slot, a partial state transition is shared, giving users early execution confirmation and enabling subsequent participants to build on updated state. Proposers opt in via a one-line MEV-Boost config change; no protocol fork is required. The primary benefit is increased trading volume (reduced forecast variance → more willing traders → more fees), not necessarily higher per-trade profit.

Problem

Ethereum’s 12-second slot time means traders must forecast price movements 12 seconds into the future. High variance across a 12-second window discourages participation:

  • LP providers face 12 seconds of adverse price exposure per block
  • Limit order traders must set wide tolerance bands to handle 12 seconds of uncertainty
  • DeFi protocols with oracle dependencies are stale for up to 12 seconds

TOOL Architecture

TOOL (Trustless Orderflow Operations Layer) by NuConstruct:

  1. Proposers opt in by adding one line to their MEV-Boost config.
  2. The proposer’s slot is divided into sub-slots (~200ms to ~1s each).
  3. After each sub-slot, a partial state transition is computed and shared:
    • Transactions executed in the sub-slot are committed
    • The resulting state diff is broadcast
  4. Users receive “early execution confirmations”: their transaction executed in this sub-slot.
  5. Subsequent sub-slot participants (traders, searchers) build on the updated state.

Distinction from Pre-Confirmations

Sub-slot confirmations are:

  • Backward-looking (“your tx just executed in this sub-slot”)
  • Based on real execution — the state transition has happened
  • Not a forward-looking guarantee (“your tx will be included”)

Pre-confirmations (like mev-commit) are:

  • Forward-looking (“your tx will be in a future block”)
  • Commitment from the proposer/relay before execution
  • Require collateral/slashing if the commitment is violated

Research on CEX-DEX Arbitrage

Supporting research presented at the Cannes workshop:

Finding: Shorter sub-slots don’t necessarily increase individual trader profit per trade — the delta stays roughly the same. But trading volume increases significantly because shorter forecast windows reduce variance.

  • Traders are more willing to participate when forecasting 1 second vs. 12 seconds
  • Reduced uncertainty → more trades per block
  • More trades → more total fees, even if per-trade profit is flat
  • Simulation: multiple competing agents across different sub-slot configurations → aggregate block value increases with shorter sub-slots, primarily driven by volume

Implication: sub-slot execution benefits the network (more fees, more efficient markets) even though individual MEV per trade is unchanged.

Proposer Game Theory: Blinding

A creative design choice: proposers don’t see the real block value from sub-slotted blocks.

Why: if proposers could compare the sub-slot block value against a competing PBS block at the last moment, they could cherry-pick — accept the sub-slot blocks only when they’re more valuable, otherwise switch to PBS.

Blinding prevents this: proposers make a longer-term decision (opt in or out based on historical average rewards) rather than per-slot decisions. This makes last-minute switching unprofitable.

Interaction with PBS

The hardest unresolved question: how do sub-slots interact with the traditional PBS pipeline?

Four scenarios discussed at the workshop:

  1. Head-to-head competition: sub-slotted blocks compete against PBS blocks at slot end — winner takes all
  2. Reorg-able sub-slots: sub-slots can be “reorged” if total sub-slot value < a competing PBS block
  3. Merging: non-contentious transactions merged onto sub-slot execution (combining both approaches)
  4. Proposer constraint: proposers set a global rule that all blocks for their slot must be sub-slotted

No consensus emerged. This is an open design problem.

The Contentious/Non-Contentious Split

State typeSub-slot execution benefitRelay merging applicability
Contentious (DEX arb, liquidations)High (composability across sub-slots matters)Low (contentious txs can’t be merged)
Non-contentious (transfers, independent calls)Low (no composability benefit)High (can be appended to winning block)

Sub-slots and relay merging are complementary: sub-slots for contentious state, merging for non-contentious. Getting both to coexist in one pipeline is the central design challenge.

Deployment

  • Opt-in for proposers via MEV-Boost config (one-line change)
  • No Ethereum protocol change required
  • NuConstruct is developing and testing the system
  • Timeline: testnet phase in 2026; mainnet deployment dependent on validation

Key Sources

  • What Emerged from the Blockspace Forum Workshop in Cannes (Apr 2026) — primary; sub-slot design; proposer blinding; CEX-DEX arb research; open questions on PBS interaction