Arbitrum, a leading Layer-2 scaling solution for Ethereum, is looking to shake things up with a new proposal called “Timeboost.” This initiative aims to address transaction ordering on the network, potentially leading to a more vibrant Arbitrum ecosystem and impacting the price of its token, ARB.

Currently, Arbitrum operates on a first-come, first-served basis for processing transactions. Timeboost, however, introduces a bidding system. Users can vie for faster transaction inclusion and placement within a block by submitting bids. The highest bidders will enjoy expedited processing and a prime spot within the block, akin to an “express lane.”

Transactions that don’t participate in the auction will still be processed but with a slight delay of around 200 milliseconds. This system bears some resemblance to the priority fee structure on Optimism’s mainnet. In both cases, users can pay extra to expedite their transactions.

The potential benefits of Timeboost are twofold. Firstly, it empowers users with greater control over their Arbitrum experience. Time-sensitive transactions, like those involving arbitrage opportunities or critical DeFi actions, can be fast-tracked through Timeboost. This could lead to a more responsive and user-friendly platform, attracting a wider user base.

Secondly, similar to optimism, the proceeds from the Timeboost auction would flow into the Arbitrum DAO Treasury, potentially generating a significant revenue stream. This additional revenue could be used to fund further development and initiatives that bolster the Arbitrum network.

However, despite the potential of Timeboost, Arbitrum is currently facing a decline in user activity. Data suggests a 38% drop in active addresses on the network over the past month. While revenue generation remains healthy, the network’s growth appears to be stagnating.

The impact of Timeboost on the price of ARB remains to be seen. At the time of writing, ARB is exhibiting a bearish trend, with a price decline and a drop in new addresses interacting with the token.

Whether Timeboost can reignite user interest and propel ARB‘s price upwards is a question that only time will answer. However, one thing is certain: Timeboost represents a significant change for Arbitrum, and its success could be a deciding factor in the network’s future trajectory.