Arbitrum has introduced a new transaction ordering policy called Timeboost, which is now live for voting. The proposal offers two options for collecting bids: in ARB, which would be burned, or in ETH, which would be sent to the DAO treasury. This new mechanism aims to democratize Miner Extractable Value (MEV) on Arbitrum by allowing bidding for faster transaction processing. The Timeboost proposal could replace the first-come-first-serve model with a second-price sealed bid auction, potentially enabling backrunning and arbitrage instead of just latency games. The proposal is significant for Arbitrum One and Arbitrum Nova chains, and could impact millions of dollars in transaction processing. Additionally, the proposal includes L2 liquidations with API3DAO's OEV Network, and is detailed in the AIP.
Now that the Timeboost proposal is live, which essentially gives @arbitrum the ability to print (or burn) millions of dollars, here is my gentle introduction to MEV and transaction ordering on L2s for those wanting to learn why Timeboost is important https://t.co/5elF8C0Glq
Timeboost democratizes MEV for Arbitrum by allowing bidding for faster tx processing. Best Part? Bids can be collected in: 1β£ ARB can be collected and burned. 2β£ or ETH can be collected and sent to the DAO. https://t.co/HYOeIzvRbQ
Introducing Timeboost; a new tx ordering policy for Arbitrum chains. Check out the AIP that just went live on the forums for the inclusion of Timeboost on Arbitrum One and Arbitrum Nova. https://t.co/nTZ9zuAXyZ https://t.co/nd8EH0fSJE
MEV on L2s could be getting a makeover with @arbitrum's Time Boost. A second-price sealed bid auction instead of First-come-first serve model could enable backrunning and arbitrage instead of just latency games. We will also have L2 liquidations with @API3DAO's OEV Networkβ¦
speaking of GOVERNANCE.... Arbitrum Timeboost proposal just went up and voters can decide whether to: 1. Collect Bids in ARB and Burn it or 2. Collect bids in ETH and send the proceeds to the DAO treasury. big summer for the DAO https://t.co/eVjiPpi376