Robinhood Chain Considers Priority Gas Auctions

Robinhood Chain is evaluating a transaction-ordering system that would allow users to pay a fee to prioritize certain trades, according to CoinDesk. The technology is being developed by Arbitrum, which provides the infrastructure behind the Layer-2 network.

Transaction Ordering Models

Arbitrum recently replaced its original Timeboost application—which offered a 200-millisecond head start—with a new model called Priority Gas Auctions on September 24. This newer system allows traders to pay higher fees to have individual transactions processed ahead of others. According to a person familiar with the matter speaking to CoinDesk under conditions of anonymity, it is this updated version that Robinhood Chain is currently assessing.

Currently, the network relies on a first-come, first-served transaction ordering policy and has not utilized Arbitrum's previous Timeboost version. Since launching its Ethereum-compatible network in July, Robinhood Chain has experienced a surge in activity, securing a spot in the top 10 list of blockchains ranked by total value locked.

Market Impact and MEV Mitigation

Applying fee-based transaction ordering to an onchain environment operates differently from traditional finance payment for order flow. It provides a speed advantage that helps professional firms compete for fleeting trading opportunities while simultaneously preventing the frontrunning of transparent blockchain trades, known as maximum extracted value.

Robinhood declined to comment on the evaluation, while Off-Chain Labs, the developer behind Arbitrum, did not immediately respond to requests for comment.

Key facts

• Robinhood Chain is evaluating Arbitrum's Priority Gas Auctions system for paid trade prioritization.
• Arbitrum launched the Priority Gas Auctions model on September 24, replacing its earlier Timeboost application.
• The Layer-2 network currently employs a first-come, first-served transaction ordering policy.
• Robinhood Chain entered the top 10 list of blockchains by total value locked after launching in July.