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

We are in favor of adopting the Timeboost transaction ordering policy. This implementation will introduce several key benefits to the Arbitrum ecosystem:

  1. Efficient Arbitrage: Timeboost will enable more efficient arbitrage opportunities within the network, helping to tighten price spreads and provide better trading experiences across decentralized exchanges (DEXs) and other protocols.
  2. Lower Infrastructure Burden: By optimizing the way transactions are ordered and processed, Timeboost will reduce the infrastructure burden on validators, ensuring more efficient resource usage and faster transaction throughput.
  3. New Revenue Stream for the DAO: A key benefit of Timeboost is its ability to collect bids in ETH for transaction ordering. This can generate a new and sustainable revenue stream for the Arbitrum DAO, strengthening the DAO’s long-term financial health while maintaining fair and efficient transaction processing.

We believe the introduction of Timeboost will be a valuable addition to the Arbitrum protocol, benefiting both the community and the DAO by enhancing the performance and economic incentives of the ecosystem.