Arbitrum DAO Votes on Key Proposal to Implement BoLD Protocol Across Ecosystem

• Scheduled for potential rollout on February 12, 2025, Arbitrum BoLD aims to improve dispute resolution and network decentralization.
• BoLD introduces a time-bound dispute resolution system to prevent delay attacks, enforcing resolution within 12.8 days.

The Arbitrum DAO is considering voting on an important improvement proposal (AIP) that would improve the security on both Arbitrum One and Arbitrum Nova. If passed, the rollout date for the AIP that introduces the Bounded Liquidity Delay (BoLD) mechanism is February 12, 2025.

What Is Arbitrum DAO’s BoLD?

BoLD is designed to replace the existing validator model with a permissionless system, which will allow more participation in securing the network. The system has been active on Arbitrum’s testnet since April 2024 and features interactive fraud proofs to strengthen security for optimistic rollups.

The ongoing on-chain vote, as of now unanimously supported, might indicate a change in Arbitrum’s view on dispute resolution. The proposal mentions how BoLD would “mitigate the risks of delay attacks using a different mechanism — by enforcing a fixed upper time bound on dispute resolution.”

How BoLD Enhances Security?

BoLD on Arbitrum introduces a time-bound mechanism for resolving disputes over the state of the Arbitrum chain. This mechanism seeks to eliminate the possibility of delay attacks, where malicious actors can prolong the dispute resolution process to destabilize the network. Under BoLD, dispute resolution happens within a maximum of 12.8 days, combining two challenge periods (approximately 13 days) and a two-day grace period for intervention by Arbitrum’s security council, if necessary.

Unlike the currently working system relying on a minimum number of validators, BoLD transfers the burden of dispute determination onto the determinism of executing L2 states so that all users can come and validate. The proposal states that reliance on permissioned sets of validators is not needed anymore because the system aims for decentralization.

The other feature that BoLD stands out for is the ability to circumvent sequencer censorship and outages. This was especially pertinent after Arbitrum One had an outage lasting 78 minutes in December 2023 due to network activity spiking. BoLD’s mechanism of censorship timeout ensures that the network remains operational even during such events.

While Arbitrum Nova will keep its permissioned model due to its smaller total value locked (TVL), the proposal is to increase its security by adding Infura, a blockchain infrastructure provider, to its validator whitelist. The proposal explains that this step will “increase the number of active validators on Nova, enhancing the network’s overall security, stability, and reliability.”

Next Steps For BoLD Proposal

The proposal emphasizes the extensive auditing and testing of BoLD, asserting that the mechanism is ready for deployment. “BoLD has been operational on the Arbitrum testnet since April 2024,” the latest proposal noted.

If approved, BoLD will strengthen security on Arbitrum One and Nova, transitioning the network toward greater decentralization and resilience. Hence, the DAO vote’s upcoming outcome will determine whether this milestone upgrade becomes a reality.

Arbitrum has been in great demand throughout 2024, with its TVL crossing $5 billion, as per the CNF report. This increase reflects rising investor interest and confidence in Ethereum’s layer-two solutions