The report examines Arbitrum's proposed transaction ordering policy, Timeboost, which aims to enhance value capture while protecting users from negative aspects of miner extractable value (MEV) behavior. It compares Timeboost with other mechanisms such as Optimism’s Priority Gas Auction (PGA), FastLane on Polygon, and API3's OEV Network.
Timeboost introduces an auction system where participants can bid for faster transaction inclusion in an express lane, promoting competitive bidding based on predictions rather than just speed. This contrasts with Arbitrum's current First Come, First Serve (FCFS) system, which can lead to spam and congestion.
The report details how each mechanism affects value capture and user experience, emphasizing that auction design significantly influences the distribution of generated value. It concludes by noting that Timeboost can maintain fast block times and protect users from harmful MEV behaviors while allowing proceeds from the auctions to support Arbitrum's DAO treasury.
