governance signal June 25, 2026

Arbitrum DAO Votes to Automate Timeboost Cash Split as PGA Switch Looms

A constitutional AIP from the Arbitrum Foundation proposes automating the distribution of Timeboost proceeds, following a companion proposal to shift the L2's ordering policy to Priority Gas Auctions.

1 min read 5 claims web-cited

Crypto implications

Timeboost PGA transition: Shifting from sealed-bid auctions to continuous gas-price priority ordering changes the revenue source and incentive structure for sequencer/validator operators, directly impacting Arbitrum DAO treasury inflows.
Automated proceeds split: Replaces manual multi-sig distribution with smart-contract-enforced allocation, reducing governance overhead and trust assumptions.
Constitutional classification: Both AIPs require higher voting thresholds, signaling that ordering-policy and revenue-distribution changes are foundational protocol parameters.
MEV revenue formalization: If implemented, Arbitrum becomes one of the first major L2s to encode MEV-revenue redistribution into base-layer protocol contracts, creating a template for other rollups.

The Arbitrum DAO wants to make a computer do the work of splitting money from Timeboost. Timeboost is a special sale where people bid on the order of transactions [^claim_456]. A new vote called ‘Automate Timeboost Proceeds Split’ is now open. It was started by arbitrumfoundation.eth [^claim_456]. The vote ends on 2026-07-02T16:30:00+00:00 [^claim_457][^claim_458].

This vote comes after another vote about changing how transactions are ordered. That vote ended on 2026-06-25. It passed with 95.1% of the votes (1245 votes) [^claim_460]. The community wants to use a system called Priority Gas Auctions (PGA) instead of Timeboost. PGA orders transactions by the highest gas price all the time.

The new vote is about how to split the money after the change. If it passes, a smart contract will handle the split. This is better than having people do it by hand. It cuts down on extra work and makes the system more trustworthy. Both votes are big changes to how Arbitrum works. They need more votes to pass [^claim_456][^claim_460].

The order of these votes matters. The first vote ended on 2026-06-25. The second vote ends on 2026-07-02 [^claim_458][^claim_460]. The DAO is finishing the change to ordering before deciding how to split the money.

For other L2 networks, this is a big deal. Arbitrum is putting rules about money sharing into its main computer code. Other rollups might copy this idea. Automating the split means fewer votes about money later. It is a step toward a system that runs itself with less human help.

Provenance ledger

5 claims web-cited

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[1] A constitutional AIP titled 'Automate Timeboost Proceeds Split' has been proposed by arbitrumfoundation.eth on Snapshot. web-cited