Arbitrum Introduces Timeboost Proposal for MEV and Voting

Arbitrum has introduced a new transaction ordering policy called Timeboost, which is now live for voting.

The proposal offers two options for collecting bids: in ARB, which would be burned, or in ETH, which would be sent to the DAO treasury.

This new mechanism aims to democratize Miner Extractable Value (MEV) on Arbitrum by allowing bidding for faster transaction processing. The Timeboost proposal could replace the first-come-first-serve model with a second-price sealed bid auction, potentially enabling backrunning and arbitrage instead of just latency games.

The proposal is significant for Arbitrum One and Arbitrum Nova chains, and could impact millions of dollars in transaction processing. Additionally, the proposal includes L2 liquidations with API3DAO's OEV Network, and is detailed in the AIP.

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