Forking the RANDAO: Manipulating Ethereum's Distributed Randomness Beacon

Abstract

Proof-of-stake consensus protocols often rely on distributed randomness beacons (DRBs) to generate randomness for leader selection. This work analyses the manipulability of Ethereum's DRB implementation, RANDAO, in its current consensus mechanism. Even with its efficiency, RANDAO remains vulnerable to manipulation through the deliberate omission of blocks from the canonical chain. Previous research has shown that economically rational players can withhold blocks known as a block withholding attack or selfish mixing when the manipulated RANDAO outcome yields greater financial rewards.