Arbitrum [ARB] Proposes Timeboost Transaction Ordering Policy to Attract Users

Arbitrum [ARB] has been one of the most popular Layer-2 protocols in the DeFi space, having managed to retain its dominance despite multiple

Layer-2 protocol Arbitrum [ARB] has managed to retain its dominance in the DeFi space despite multiple new entrants coming into the market. Now, a new development on the L2 is set to further enhance the user experience.

According to recent updates, Arbitrum is planning to adopt “Timeboost,” a transaction ordering policy. Currently, Arbitrum transactions follow a first-come, first-served approach.

However, Timeboost will introduce a bidding system for transaction inclusion and placement. Users will be able to submit bids for their transactions and the highest bidders will get faster processing and a better position within the block.

In contrast to the current system, transactions that win the Timeboost auction will be included in an “express lane,” experiencing no delays at all.

Transactions that don't participate in the auction will be processed as usual, but with a slight delay of around 200 milliseconds. This mechanism is similar to the priority fee system on OP Mainnet, where users can pay additional fees to expedite their transactions.

Like Optimism [OP], the proceeds from the Timeboost auction will go to the Arbitrum DAO treasury, which could generate a significant revenue stream.

With the ability to prioritize transactions, users will gain more control over their experience on the Arbitrum network. Time-sensitive transactions, such as arbitrage opportunities or critical DeFi actions, can be expedited through the use of Timeboost. This could lead to a more responsive and user-friendly platform, attracting a wider range of users.

At the time of writing, Arbitrum was having trouble attracting and retaining users. An analysis of Token Terminal's data by AMBCrypto showed that the number of active addresses on the Arbitrum network had decreased by 38% over the past month.

However, the revenue generated by Arbitrum remained high. At press time, ARB was trading at $0.7946, having decreased by 3.26% in the last 24 hours. Over the past month, ARB showed signs of a bearish trend, indicated by lower lows and lower highs in its price.

The network growth around the token also fell significantly, suggesting that new addresses were losing interest in the token.