Arbitrum Launches Timeboost, Generates $2,491 in DAO Revenue Day One
Arbitrum launched Timeboost, a new transaction ordering mechanism aimed at improving efficiency on its network. Key points include:
- Current transactions use a first come, first serve method, which can hinder performance during market crashes.
- Timeboost introduces an auction system where MEV searchers bid for transaction priority, allowing faster processing for higher bids.
- The mechanism is similar to EIP-1559 and other fee market strategies implemented in different blockchain ecosystems.
- Estimates suggest potential value accrual of $30 million for ARB stakers, with MEV searchers extracting nearly $29.3 million in March alone.
- After one day, Timeboost generated $2,492 in DAO revenue.
- Concerns exist regarding the incentive for centralization of sequencers, but plans are in place for future compatibility with decentralized systems.
- Collaboration with Espresso aims to create a decentralized version of Timeboost by September 2024.