AG-214

Transaction Inclusion, Censorship and Liveness Governance

Crypto / Web3 Governance & Hostile Financial Environments ~19 min read AGS v2.1 · April 2026
EU AI Act FCA NIST ISO 42001

2. Summary

Transaction Inclusion, Censorship and Liveness Governance requires that every AI agent submitting transactions to public or permissioned blockchains implements structural controls to detect, mitigate, and respond to transaction censorship, delayed inclusion, selective ordering (MEV extraction), and liveness failures that prevent the agent's transactions from being included in blocks within operationally required timeframes. The dimension addresses the reality that transaction inclusion on blockchain networks is not guaranteed — it is contingent on the behaviour of block proposers, sequencers, relay operators, and the MEV supply chain (builders, searchers, relayers). An AI agent that assumes its submitted transactions will be included promptly and fairly is operating with an incorrect model of the network. On Ethereum mainnet post-Merge, approximately 90% of blocks are built through MEV-Boost relays, which introduce builder-level transaction selection that can exclude, delay, or reorder transactions for economic advantage. On L2 rollups, a centralised sequencer has absolute discretion over transaction inclusion. For AI agents executing time-sensitive operations — liquidations, oracle updates, governance votes, collateral adjustments, approval revocations (AG-212), or emergency pause transactions — censorship or delayed inclusion is not a theoretical risk but an operational reality that can result in millions of dollars in losses.

3. Example

Scenario A — Liquidation Transaction Censored by MEV Builder: An AI liquidation agent on Ethereum mainnet detects a lending position that has become undercollateralised: 500 ETH of collateral backing a 400 ETH debt, with the liquidation threshold at 80% LTV. The agent submits a liquidation transaction via the public mempool with a 50 gwei priority fee. An MEV searcher detects the liquidation opportunity, front-runs the agent's transaction with a higher priority fee (200 gwei), and captures the liquidation bonus (typically 5-10% of the collateral). The agent's transaction either fails (if the position is already liquidated) or is excluded from the block entirely because the builder preferentially includes the searcher's transaction. Over a 30-day period, the agent attempts 1,200 liquidations and is front-run on 847 of them, losing approximately USD 2.1 million in liquidation bonuses that it was entitled to earn.

What went wrong: The agent submitted transactions to the public mempool, exposing its intent to MEV searchers. It used a fixed priority fee rather than a dynamic strategy. No private transaction submission (e.g., Flashbots Protect, MEV Blocker) was employed. No analysis of block-builder behaviour informed the submission strategy. Consequence: USD 2.1 million in lost liquidation revenue, degraded protocol health (delayed liquidations during periods of high MEV competition), competitive disadvantage.

Scenario B — Governance Vote Censored During Critical Proposal: An AI governance agent is instructed to cast a vote against a malicious governance proposal that would transfer USD 45 million from the protocol treasury to an attacker-controlled address. The proposal is in its final 4-hour voting window. The agent submits the vote transaction via the public mempool. The attacker, who controls a significant share of MEV builder infrastructure, instructs their builders to exclude any transactions that call the castVote() function on the governance contract with a "No" vote. The agent's transaction is not included in any block for 3 hours and 47 minutes. With 13 minutes remaining, the agent detects the censorship and attempts to submit via Flashbots Protect, but the remaining time is insufficient to accumulate enough votes to defeat the proposal. The malicious proposal passes. USD 45 million is transferred from the treasury.

What went wrong: The agent had no censorship detection mechanism — it waited for block inclusion without monitoring whether its transaction was being systematically excluded. It had no alternative submission channels pre-configured. It did not detect the censorship pattern (all "No" votes being excluded) and alert operators. No fallback mechanism (e.g., direct validator submission, cross-chain governance relay) existed. Consequence: USD 45 million treasury loss, governance failure, protocol trust destroyed.

Scenario C — Emergency Pause Transaction Delayed by Network Congestion: An AI security agent detects an ongoing exploit draining USD 8 million from a DeFi protocol at a rate of USD 200,000 per minute. The agent submits an emergency pause() transaction to halt the protocol. However, the exploit itself is generating extreme network congestion: the attacker is submitting hundreds of transactions per block to extract funds, driving gas prices to 800 gwei (from a baseline of 30 gwei). The agent's pause transaction, submitted at 100 gwei, is not competitive. The agent increases to 500 gwei — still not competitive. By the time the agent's gas price exceeds the attacker's (at 1,000 gwei), 12 minutes have passed and USD 2.4 million has been drained. The pause transaction finally executes, halting further loss, but the delayed inclusion cost USD 2.4 million.

What went wrong: The agent used an incremental gas price escalation strategy rather than an immediate maximum-priority submission for emergency transactions. No pre-signed emergency pause transaction with maximum gas was maintained in a hot standby. No Flashbots bundle was used to guarantee inclusion in the next block (Flashbots bundles bypass gas price competition by paying the builder directly). Consequence: USD 2.4 million additional loss due to delayed pause, incident response failure, regulatory scrutiny.

4. Requirement Statement

Scope: This dimension applies to any AI agent that submits transactions to a public or permissioned blockchain where transaction inclusion depends on the behaviour of block proposers, sequencers, builders, or relay operators. This includes Ethereum mainnet (where block builders select transactions), L2 rollups (where sequencers order transactions), and any chain where the agent's transaction may be censored, delayed, reordered, or excluded by the entity responsible for block production. The scope includes agents submitting user-facing transactions, governance votes, oracle updates, liquidations, emergency responses, approval revocations, and any other on-chain action. An agent that only reads on-chain state without submitting transactions is excluded.

The key words "MUST", "MUST NOT", "REQUIRED", "SHALL", "SHALL NOT", "SHOULD", "SHOULD NOT", "RECOMMENDED", "MAY", and "OPTIONAL" in this document are to be interpreted as described in RFC 2119.

4.1. A conforming system MUST implement censorship detection that identifies when an agent's transaction has not been included within a configurable number of blocks after submission (default: 5 blocks on Ethereum mainnet; 30 seconds on L2s), triggering an escalation procedure.

4.2. A conforming system MUST maintain at least two independent transaction submission channels (e.g., public mempool plus Flashbots Protect, or multiple builder-direct APIs) and automatically failover to an alternative channel when the primary channel fails to achieve inclusion within the configured threshold.

4.3. A conforming system MUST implement a priority fee strategy that dynamically adjusts based on network conditions, with the ability to immediately escalate to maximum priority for emergency transactions (emergency pause, exploit response, critical approval revocations).

4.4. A conforming system MUST pre-sign and maintain in hot standby any emergency transactions (pause, shutdown, emergency withdrawal) at maximum gas price, ready for immediate submission via multiple channels simultaneously.

4.5. A conforming system MUST log every transaction submission attempt, including: submission channel, gas price, priority fee, block number at submission, block number at inclusion (or failure), and any censorship detection events.

4.6. A conforming system MUST NOT submit transactions containing sensitive operational intent (liquidation targets, large trade parameters, governance vote direction) to the public mempool without MEV protection (private transaction submission, commit-reveal schemes, or encrypted mempools).

4.7. A conforming system SHOULD implement MEV-aware transaction submission using Flashbots Protect, MEV Blocker, or equivalent private submission channels that prevent front-running and sandwich attacks.

4.8. A conforming system SHOULD monitor block builder and sequencer behaviour for patterns of selective censorship (e.g., systematically excluding transactions to specific contracts, from specific addresses, or with specific function selectors) and report detected patterns.

4.9. A conforming system SHOULD implement commit-reveal schemes for transactions where the content of the transaction itself creates an MEV opportunity (e.g., large swaps, oracle updates, governance votes), separating the commitment to transact from the revelation of transaction parameters.

4.10. A conforming system MAY implement transaction submission through multiple geographically distributed nodes to increase inclusion probability and resist regional censorship.

5. Rationale

Transaction inclusion on blockchain networks is not a technical guarantee — it is an economic and political process. On Ethereum mainnet, block proposers (validators) delegate block construction to builders through the MEV-Boost relay system. Builders construct blocks to maximise their own revenue, which means they include transactions that pay the highest fees and arrange transactions in an order that extracts the most MEV (Maximal Extractable Value). A transaction that creates an MEV opportunity for a searcher (e.g., a large swap that can be sandwiched) will be included — but reordered to the searcher's advantage. A transaction that competes with a searcher's transaction may be excluded entirely.

Censorship — the deliberate exclusion of a valid transaction — is distinct from delayed inclusion due to fee competition, but the practical effect is the same: the agent's transaction does not execute when needed. OFAC compliance censorship by builders (refusing to include transactions involving sanctioned addresses) demonstrated in 2022-2023 that builder-level censorship is technically trivial and, for some builders, routine. The percentage of OFAC-compliant blocks peaked at approximately 73% in November 2022 before declining, but the mechanism exists and can be repurposed for any censorship criterion.

For AI agents, the consequences of transaction censorship or delayed inclusion are severe:

Liquidation timing. DeFi lending protocols depend on timely liquidations to maintain solvency. A 10-minute delay in liquidation during a rapid price decline can convert a solvent position into bad debt. If the agent's liquidation transaction is censored or front-run, the protocol (and by extension its depositors) absorbs the loss.

Emergency response. When a protocol is under active exploit, every second counts. An emergency pause transaction that is delayed by even 5 minutes can cost millions. If the attacker is driving gas prices higher as part of the exploit (a common pattern), the agent's pause transaction may be economically excluded.

Governance. On-chain governance votes with fixed deadlines create censorship opportunities: an attacker who can delay opposing votes until the deadline passes wins the vote regardless of actual sentiment. This is particularly dangerous for governance proposals that modify protocol parameters, transfer treasury funds, or change access controls.

Approval revocation. Following AG-212 (Delegated Spend, Token Allowance and Session-Key Governance), emergency approval revocation during a security event depends on timely transaction inclusion. If the revocation transaction is delayed, the attacker may drain approved assets before the revocation executes.

The MEV supply chain (searchers → builders → relays → proposers) creates a complex landscape where transaction inclusion is mediated by multiple parties, each with their own economic incentives. An AI agent that does not account for this landscape — that assumes "submit transaction, get inclusion" — is operating with a naive model that will fail precisely when inclusion matters most.

6. Implementation Guidance

Recommended patterns:

Anti-patterns to avoid:

Industry Considerations

DeFi Protocols (Liquidation Bots). Liquidation agents should use Flashbots bundles for all liquidation transactions, bundling the liquidation with the subsequent collateral swap in a single atomic package. This eliminates the risk of front-running and ensures the agent captures the liquidation bonus. The bundle should include a tip to the builder that makes inclusion economically rational.

Oracle Providers. Oracle update agents must ensure that price feed updates are included within tight timeframes (typically within 1 block of the trigger condition). Delayed oracle updates can cause cascading liquidation failures across all protocols using the oracle. Oracle agents should use multi-channel submission and pre-signed update transactions.

DAO Governance. Governance platforms should implement commit-reveal voting to prevent vote censorship. The commit phase reveals only the voter's identity and the fact that they voted — not the vote direction. The reveal phase, occurring after the commit deadline, reveals the actual votes. This prevents builders from censoring votes based on direction.

Sequencer-Dependent Chains. For L2 agents, sequencer censorship is a direct risk (see AG-213). The forced-inclusion mechanism is the primary mitigation, but it has a multi-hour delay. For time-sensitive L2 transactions, agents should maintain L1 fallback mechanisms that can execute the equivalent action on L1 if the L2 sequencer censors the transaction.

Maturity Model

Basic Implementation — The agent uses a single submission channel (public mempool or sequencer RPC) with a dynamic gas price strategy. Transaction inclusion is monitored — the agent detects when a transaction is not included within a threshold and retries with higher gas. Emergency transactions use maximum gas. No private submission, no censorship detection, and no multi-channel redundancy. This level handles fee competition but is vulnerable to censorship and MEV extraction.

Intermediate Implementation — Multi-channel submission (public mempool plus Flashbots Protect or equivalent). Sensitive transactions are submitted privately. Censorship detection heuristic identifies potential exclusion patterns. Emergency transactions are pre-signed and available in hot standby. Dynamic gas escalation with configurable ceilings. All submission attempts are logged with inclusion outcomes. The agent can achieve transaction inclusion within 5 blocks under normal conditions and within 2 blocks for emergency transactions.

Advanced Implementation — All intermediate capabilities plus: commit-reveal schemes for high-value transactions. Multi-builder direct submission. Geographic distribution of submission nodes. Builder behaviour analysis identifies censorship patterns and adjusts submission strategy. Integration with encrypted mempool proposals (e.g., threshold encryption schemes) where supported. Independent testing has confirmed that the agent achieves inclusion under simulated censorship scenarios including builder collusion, extreme gas price manipulation, and sequencer selective exclusion. L1 fallback mechanisms for L2 censorship scenarios.

7. Evidence Requirements

Required artefacts:

Retention requirements:

Access requirements:

8. Test Specification

Test 8.1: Censorship Detection

Test 8.2: Multi-Channel Failover

Test 8.3: Emergency Transaction Readiness

Test 8.4: MEV Protection

Test 8.5: Dynamic Gas Escalation

Test 8.6: Private Submission for Sensitive Transactions

Test 8.7: Submission Logging Completeness

Conformance Scoring

9. Regulatory Mapping

RegulationProvisionRelationship Type
MiCAArticle 68 (Obligations for Crypto-Asset Service Providers)Supports compliance
MiCAArticle 76 (Best Execution)Direct requirement
MiFID IIArticle 27 (Best Execution)Direct requirement
EU AI ActArticle 9 (Risk Management System)Supports compliance
EU AI ActArticle 15 (Accuracy, Robustness and Cybersecurity)Supports compliance
DORAArticle 9 (ICT Risk Management Framework)Supports compliance
FCA COBS11.2 (Best Execution)Direct requirement
NIST AI RMFMANAGE 2.2, MANAGE 4.1Supports compliance
ISO 42001Clause 6.1, Clause 8.2Supports compliance

MiCA — Article 76 (Best Execution)

Article 76 requires crypto-asset service providers to "take all sufficient steps to obtain the best possible result for their clients when executing orders." In blockchain environments, "best execution" includes not just price but also the cost of transaction inclusion (gas fees), the risk of MEV extraction (front-running, sandwiching), and the timeliness of execution. An agent that submits a large swap to the public mempool, enabling a sandwich attack that costs the client 2% of the trade value, has failed its best execution obligation. AG-214's requirement for private submission channels (4.6, 4.7) and MEV-aware strategies directly implements best execution for on-chain order execution.

MiFID II — Article 27 (Best Execution)

Article 27's best execution requirement has been interpreted by ESMA to include execution venue selection, timing, and all costs associated with execution. For AI agents executing trades on DEXs, the MEV supply chain is part of the execution cost. An agent that does not use MEV protection is not achieving best execution because a predictable, avoidable cost (MEV extraction) is being imposed on the client. AG-214 provides the specific controls — private submission, commit-reveal, multi-channel failover — that constitute best execution in the on-chain context.

FCA COBS — 11.2 (Best Execution)

COBS 11.2 requires firms to "take all sufficient steps to obtain the best possible result for their clients." For crypto trading agents, this maps directly to AG-214's MEV protection requirements. The FCA has signalled through its Crypto-Asset Activities consultation that it expects firms offering crypto-asset trading to demonstrate equivalent best execution standards, which necessarily includes MEV mitigation.

DORA — Article 9 (ICT Risk Management Framework)

Transaction censorship and liveness failures are ICT risks. An agent that cannot submit transactions because its submission channel has failed, or because its transactions are being censored, has experienced an ICT incident that must be identified, managed, and reported per DORA Article 9. AG-214's multi-channel failover (4.2), censorship detection (4.1), and logging requirements (4.5) implement ICT risk management for the transaction submission layer.

10. Failure Severity

FieldValue
Severity RatingCritical
Blast RadiusAll operations dependent on timely transaction inclusion — potentially all assets under the agent's management, all protocol users dependent on the agent's operations (e.g., liquidation bots protecting protocol solvency), and all governance outcomes where the agent's vote was censored

Consequence chain: Failure of transaction inclusion governance creates a timing vulnerability where the agent's intended actions do not execute when needed. The severity depends entirely on context: a delayed swap of USD 1,000 may cost a few dollars in slippage; a delayed liquidation during a market crash may cost millions in bad debt; a censored emergency pause during an active exploit may cost the entire protocol TVL; a censored governance vote may result in a hostile governance takeover. The failure mode is particularly dangerous because it is often invisible — the agent submitted the transaction, it simply was not included. Without active inclusion monitoring and censorship detection, the agent may not even know its transaction failed until the consequences materialise. The financial impact ranges from marginal (MEV extraction on routine transactions) to catastrophic (emergency transaction censorship during an exploit). The regulatory impact includes best execution violations (MiCA Article 76, MiFID II Article 27), ICT incident reporting obligations (DORA Article 19), and potential enforcement for inadequate systems and controls. The systemic impact is particularly acute for liquidation agents: if multiple liquidation bots are simultaneously censored during a market crash, the resulting bad debt cascade can threaten protocol solvency and trigger contagion across the DeFi ecosystem.

Cross-references: AG-001 (Operational Boundary Enforcement) defines the mandate within which the agent's gas budget and submission strategy operate. AG-007 (Governance Configuration Control) governs the versioning of submission channel configurations, gas ceilings, and censorship detection thresholds. AG-014 (External Dependency Integrity) provides the general framework for managing dependencies on external infrastructure (MEV relays, builder APIs, sequencer endpoints) that AG-214 specialises for the transaction inclusion context. AG-212 depends on AG-214 because emergency approval revocations require timely transaction inclusion — a censored revocation leaves approvals exposed. AG-213 addresses the broader sequencer dependency that determines L2 transaction inclusion, while AG-214 focuses on the agent's strategies for ensuring inclusion within those constraints. AG-210 depends on AG-214 because segregation enforcement actions (emergency asset movement, reconciliation corrections) require transaction inclusion to execute.

Cite this protocol
AgentGoverning. (2026). AG-214: Transaction Inclusion, Censorship and Liveness Governance. The 783 Protocols of AI Agent Governance, AGS v2.1. agentgoverning.com/protocols/AG-214