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

FAQs

  1. What’s an ELI5 on Timeboost?

Timeboost is a new transaction ordering policy for Arbitrum chains where participants can bid for the right to get their transactions included slightly faster than anyone else. Importantly, user transactions will still remain private until after they are executed, meaning that no one can frontrun or sandwich users. Timeboost bids are collected by the Arbitrum DAO in either ETH or ARB, depending on DAO approval.

  1. As a typical user, will I notice any difference in my experience?

The only difference users should experience is a small delay when submitting their transactions. The default configuration for this delay is 200ms and can be changed by the Arbitrum DAO. This delay is to give the express lane controller an advantage so they are able to include transactions slightly quicker than others. Importantly, user transactions will still remain private until after they are executed, meaning that the express lane controller cannot frontrun or sandwich users.

  1. Where does the Timeboost income stream come from?

Timeboost auctions the rights to an express lane, giving the winner an advantage for transaction inclusion and allowing them to capture arbitrage and backrunning opportunities. Proceeds from the auction are at the discretion of the Arbitrum DAO, with two main options outlined in this proposal: collecting bids in ETH or collecting bids in ARB.

  1. What is the difference between the two options?

This AIP proposes two main options that the community can vote on if it decides to adopt Timeboost. Governance can change these options at any time.

  • Option 1: Collect bids in ETH and send the proceeds to the DAO treasury.
  • Option 2: Collect bids in ARB and burn the proceeds.

Depending on which option the Arbitrum DAO chooses, the auction contract can either transfer the proceeds to a designated account or burn them.

  1. How can I participate in Timeboost directly?

Interested parties can participate in the Timeboost auctions by depositing funds in the auction contract and sending bids to the autonomous auctioneer. We will have docs with more information.

The Timeboost auction is open to everyone; however, only parties interested in capturing arbitrage or backrunning opportunities will benefit from winning it. Timeboost works behind the scenes with minimal impact on normal users, generating revenue for the Arbitrum DAO.

  1. How much estimated revenue will this drive to the DAO?

Estimating how much revenue Timeboost will generate is difficult and based on many factors. There are no ways to confidently estimate the amount of arbitrage or backrunning opportunities that will exist on Arbitrum chains in the future. The expectation is that the revenue will be significant on Arbitrum One due to the high amount of DeFi activity.

  1. Does it work with Orbit chains?

Timeboost can be adopted by Orbit chains, and they can also choose different tokens from ETH or ARB to be paid in if they wish. For example, a chain could choose to accept its own token for the auction.

  1. Will there be a testnet for Timeboost?

Timeboost will be enabled on internal devnets and Arbitrum Sepolia prior to Arbitrum One and Nova.

  1. What is the timeline for Timeboost?

Timeboost is at the beginning of the governance process and must undergo forum discussion, a Snapshot vote, and an onchain vote before being adopted on mainnet.

  1. Will it work with future decentralized Arbitrum sequencers?

The proposed version of Timeboost is only compatible with a centralized sequencer, however, a future version that works with a decentralized sequencer is under development. This allows us to deliver Timeboost sooner, rather than waiting until the decentralized sequencer is complete.

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