Arbitrum launched Timeboost, a new mechanism to improve transaction prioritization, generating $2,491 in DAO revenue on its first day. Under the traditional first come, first serve (FCFS) method, rapid transactions often lead to network spam and degraded user experience, heightened by issues during market crashes when swift actions are necessary. Timeboost introduces an auction system where MEV searchers bid for transaction priority, enabling faster processing for winning bids. For instance, if two MEV searchers bid 1 ETH and 2 ETH, the winner pays the lower amount while their transaction is prioritized. This innovation not only enhances the fee market but also targets a significant value opportunity for ARB stakers, potentially worth around $30 million. However, there are concerns about this monetization affecting the incentive for decentralization in sequencers. Despite the centralization worries, plans are in place for integrating Timeboost with decentralized sequencing by September 2024, focusing on compatibility with projects like Espresso, shifting towards a comprehensive decentralized solution.

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