Arbitrum Replaces Timeboost With Per-Transaction Priority Auctions

Arbitrum is replacing its Timeboost mechanism with per-transaction priority auctions to determine transaction ordering. Priority fees and revenue from paid Fast Feed subscriptions will be split so that 97% goes to the Arbitrum DAO treasury and 3% goes to the Arbitrum Developer Guild.

By AI Newsroom· Reviewed by Pranav, Founder & Editor-in-ChiefPublished 2 minutes agoUpdated 2 minutes ago0 views

Why It Matters

Shifting to per-transaction priority auctions changes how transaction ordering is monetized on Arbitrum and routes the vast majority of that revenue to the protocol treasury, affecting how protocol-controlled funds are sourced and allocated.

Key Facts

Change announced: Arbitrum will replace Timeboost with per-transaction priority auctions
Revenue allocation — DAO treasury: 97% of priority fees and paid Fast Feed subscription proceeds
Revenue allocation — Developer Guild: 3% of priority fees and paid Fast Feed subscription proceeds
Revenue sources mentioned: Priority fees and paid Fast Feed subscriptions

Arbitrum has announced it will replace its Timeboost mechanism with per-transaction priority auctions to handle transaction ordering. The protocol will use the new auction system to collect priority fees from users who wish to influence ordering and to monetize paid Fast Feed subscriptions.

Under the new rules, nearly all proceeds from these priority fees and Fast Feed subscriptions will be directed to governance-controlled funds. Specifically, 97% of the revenue will be allocated to the Arbitrum DAO treasury, while the remaining 3% will be routed to the Arbitrum Developer Guild.

The change centralizes the handling of priority fee revenue and establishes a fixed split between the DAO treasury and the developer guild for proceeds from both per-transaction auctions and Fast Feed subscriptions. The announcement frames this structure as the protocol’s chosen approach for distributing funds generated by transaction-priority mechanisms.

No additional implementation details, timing, or technical specifics were provided in the source excerpt about how the auctions will operate or how existing Timeboost users will be migrated to the new system.