Understanding Timeboost and Its Purpose

Timeboost is a new transaction ordering policy proposed for Arbitrum chains, designed to enhance transaction ordering without introducing new Maximum Extractable Value (MEV) issues. Offchain Labs seeks to clarify common misconceptions regarding Timeboost to ensure accurate public understanding.

Misconception #1: Arbitrum’s Transaction Model

One misconception is that Arbitrum uses Ethereum L1’s transaction model, leading to MEV issues. In reality, Arbitrum employs a First-Come, First-Served (FCFS) model, avoiding block-by-block processing pitfalls.

Misconception #2: Timeboost and MEV Types

Contrary to beliefs, Timeboost does not create new MEV types. It adjusts existing dynamics to balance MEV capture without enabling harmful transaction reordering.

Misconception #3: Power Dynamics

Some believe that winning a Timeboost auction grants excessive power. In reality, the 200ms head start provided by Timeboost does not guarantee absolute priority in transaction ordering.

Misconception #4: Centralization Risks

Concerns about centralization risks with Timeboost are addressed by the auction-based system encouraging open competition and preventing monopolistic control.

Misconception #5: MEV Capture and Spam Elimination

Timeboost’s goal is not to capture all MEV or eliminate spam entirely but to allow chain owners to capture a significant share of MEV while reducing arbitrage spam.

Timeboost is an optional feature for Arbitrum chains, maintaining security and efficiency. Each chain can independently decide on its adoption, aligning with decentralized governance principles.

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