Will Arbitrum’s Timeboost Revive Network Activity and Increase the ARB Price?

Journalist

• Arbitrum’s new proposal could help improve the ordering of transactions on the network.
• Despite room for improvement, overall activity on the network declined.

Arbitrum [ARB] has been one of the most popular Layer 2 protocols in the DeFi space and has managed to maintain its dominance despite numerous new entrants to the market.

Timeboost Proposal

Arbitrum has proposed the introduction of “Timeboost”, a transaction ordering policy that would introduce a bidding system for including and placing transactions.

Under the Timeboost system, users can place bids on their transactions, with the highest bidders receiving faster processing and a more favorable position within the block.

The introduction of Timeboost would create an “express lane” for winning transactions, ensuring no delays, while non-participating transactions would experience a slight delay of around 200 milliseconds.

The mechanism is similar to the priority fee system used on the OP mainnet, and proceeds from the Timeboost auction would go into the Arbitrum DAO treasury.

Impact of Timeboost

The ability to prioritize transactions with Timeboost gives users more control over their experience on the Arbitrum network, leading to a more responsive and user-friendly platform that can attract a wider range of users.

Arbitrum’s Current Status

Arbitrum is currently facing challenges in acquiring and retaining users, with a significant drop in the number of active addresses over the past month, although the revenue generated remains high.

Market Analysis

At present, ARB is trading at $0.7946, showing a decline of 3.26% in the last 24 hours. The token has exhibited signs of a bearish trend over the past month, with decreasing network growth and lower interest from new addresses.