Arbitrum Collects $2M Through New Timeboost Transaction System

Arbitrum's Timeboost transaction ordering system generated over $2 million in fees during its first 11 weeks of operation on Arbitrum One and Nova, according to on-chain data from Dune Analytics. A dashboard tracks live auction bids, winner payouts, and revenue in real time. 

The Timeboost feature launched in mid-April 2025. The new system replaced Arbitrum's previous first-come, first-served transaction processing with an auction-based model. Users now bid for priority placement of their transactions in blocks.

Timeboost operates as a second-price auction. The highest bidder wins priority access to blockspace but pays the second-highest bid amount rather than their own bid. The previous system allowed MEV searchers to submit zero-cost bids that often caused network congestion.

Current fee collection rates suggest Timeboost could generate approximately $10 million annually for the Arbitrum DAO treasury. However, the Arbitrum Foundation previously projected annual fees between $19 million and $95 million once the system reaches full adoption.

Before Timeboost, Arbitrum One processed transactions based solely on arrival time. MEV bots frequently exploited this system through front-running strategies. The new auction model requires actual payment for priority access rather than allowing free attempts at priority placement.

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The fees flow directly to the Arbitrum DAO, which governs the network through token holder voting. Timeboost represents Arbitrum's transition from time-based transaction ordering to market-based prioritization.

Analytics show consistent daily fee collection since the April launch, with higher activity periods generating increased auction competition and revenue. The system processes both regular transactions and MEV-related activity through the same auction mechanism.