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

[Arbitrum]

Hey everyone, here are the follow up responses to the new questions that have not been previously addressed.

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

When its going live? I will be voting for 2. Option.

Timeboost is at the beginning of the governance process and must undergo forum discussion here, a Snapshot vote, and an onchain vote (Constitutional AIP) before being adopted on mainnet. Collecting feedback from potential participants and the community is essential throughout the governance process. Changes to the design and/or implementation may be made to address feedback and impact the timelines.

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

Thanks team. To keep clarifying this part, as “Access to the express lane would be auctioned off in one-minute rounds, with the auction happening 15 seconds before the round begins.” Does it mean we expect searchers to bid continuously in advance, expecting opportunities to happen 1m later, rather than “in real time” opportunities (I see something → I submit an arbitrage tx with priority)?

It is worth clarifying that the participant would have to predict the amount of MEV generated between 15s and 1min 15s in the future - not 1 minute later. This is because the auction is closed and resolved at a maximum of 15 seconds before the start of the next round (in the current proposal). Willing participants are expected to bid continuously for the right to use the express lane in advance so that they (the participants) can profit from both (1) MEV opportunities they predict between 15s and 1min 15s in the future and (2) MEV opportunities in real time during the period of time that the participant is in control of the express lane (proposed duration: 1 minute), if the participant wins the auction. If the participant does not win control of the express lane, opportunities that they see in real time can still be exploited, but with a 200ms delay like all other txns (since only the express lane controller has experiences no delay for their txns).

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

We are definitely excited to see Timeboost will be introduced to mitigate the issues around the L2 MEV landscape and actors while appropriately capturing the revenue opportunity and/or introduction to the burning mechanism for the ARB token. We are generally in favor of Option 1 in terms of the auction proceeds. We believe the current priority for the DAO is to sustainably manage the DAO treasury as we are currently discussing the Arbitrum gas fee and sequencer revenue. We also like the “split …

We acknowledge FastLane’s work and the perceived similarity in approach, but we believe the design of Timeboost is fundamentally different from FastLane’s design. We further believe that both designs were aimed at solving different problems. It is our understanding that FastLane sold advantage separately for each AMM market and in txn propagation among peers. Timeboost, on the other hand, sells an advantage in txn inclusion timing and therefore sells the opportunity to profit from MEV altogether.