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Arbitrum’s Timeboost Auction ⚖️Timeboost

CN
Delphi Digital
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1 year ago
AI summarizes in 5 seconds.

Arbitrum’s Timeboost Auction ⚖️

Timeboost, @arbitrum's new transaction sequencing policy, replaces first-come-first-serve with an auction for transaction priority.

Winners access an "express lane" with a 200ms advantage for transaction inclusion. This shifts competition from latency to strategic bidding and prediction.

Arbitrum uses first-come-first-serve (FCFS) transaction ordering based on sequencer arrival.

This enables fast blocks and reduces frontrunning, but it has drawbacks:

🔹 MEV capture relies on latency races, spurring infrastructure arms races

🔹 Searchers capture most MEV, leaving little for users, projects, and the DAO

🔹 Incentivizes transaction spamming, risking network congestion

In the other hand, Timeboost auctions are held every minute for next-minute express lane control:

Auctioneer accepts bids for 45 seconds, with 15 seconds for resolution. Minimum bid: 3 $ARB or 0.001 $ETH (DAO decision). Limit: 5 bids per address per round. 👇


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