Constitutional AIP: Proposal to adopt Timeboost, a new transaction ordering policy

[leyiang]

Pros:

1. Increases DAO revenue.

2. Reduces spam.

Cons:

1. Increased slippage, as previously stated.

2. Nearly doubles transaction response time. With the growing competition among public chains, fast response time is Arbitrum’s greatest advantage and brings great UX. Artificially diminishing this advantage significantly reduces Arbitrum’s competitiveness(eg. compared to solana) and limits the potential improvements driven by hardware advancements.

3. Potential monopoly. The design of the Timeboost mechanism grants a leading advantage for all transactions in the following minute through a single bid, which is highly likely to result in monopolization. The consequence of such monopolization is that a single team could dominate all arbitrage transactions, forcing other teams out and ultimately rendering the auction mechanism ineffective.

@Arbitrum

An additional point to be made here is that the on-chain monitoring will not be for monopolistic behavior, but for the bid amounts compared to the available MEV on an Arbitrum chain.

Additionally, considering arbitrage transactions between CEX and DEX, I believe it is very challenging to estimate “the available MEV on an Arbitrum chain.”