The FranklinDAO/Penn Blockchain Team has voted for the option of collect fees in ETH. We believe that more discussion is needed on where Timeboost fees should be distributed - whether to ARB stakers, applications that created the MEV opportunity, burned, or a mix of these options. Further, 3.7B ARB tokens (or 37% of total supply) have yet to be unlocked, with vesting to Investors/Team & Advisors continuing linearly until March 2027 (link). A later discussion is needed to decide when the right time is for an ARB burn mechanism. In the meantime, we believe growing the DAO’s ETH reserves is a good idea.
A couple things we wanted to mention/ask:
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What is the expected revenue Timeboost will bring to the DAO? What is a ballpark number to give delegates a general idea of the revenue opportunity here? @arbitrum A paper quantifying MEV claimed $250k of MEV profit was extracted in the 1.5 year period on Arbitrum (From Arb mainnet launch Aug 2021 to Mar 2023). How much larger is the opportunity now?
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Wanted to clarify what winning the Express Lane auction means - Since auctions are every minute, does this mean that the auction winner will have first in block bundle guarantee for an entire 1 minute period - meaning for the next 240 blocks? (1 min * 60 sec * 1000ms per sec / 250ms/block)
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Express Lane gives rise to new toxic MEV opportunities at the expense of users/protocols. @chaoslabs explained this in their analysis, citing the example of an Express Lane auction winner identifying a close to liquidation position and sandwiching it to forcibly create a liquidation. It’s important to note that these opportunities exist in any transaction order scheme that allows for top of block bundled tx inclusion. We’d like to see more historical analysis on the size and frequency of these user/protocol hurting MEV bundles, and what we can expect to see in Timeboost.