Develop a fully dynamic model of the verification cost function Φ^i

Develop a fully dynamic, equilibrium-based model of the verification cost function Φ^i(A^i(t)) that endogenizes validator incentives, search effort, community participation, adversarial response probabilities, and prediction market liquidity within the OpenAlpha validation mechanism.

Background

The verification cost function Φi captures protocol expenditures related to validating a strategy, including prediction market rewards, deep-search audits, gas costs, and dispute resolution. The text emphasizes Φi is endogenous to system behavior and depends on factors such as participation and liquidity.

A comprehensive treatment requires modeling strategic interactions among validators and auditors. The authors explicitly leave this equilibrium analysis to future work, making the construction of a dynamic Φi a stated open task.

References

A fully dynamic model of $\Phii$ would require equilibrium analysis of validator incentives and search effort, which we leave to future work.

OpenAlpha: A Community-Led Adversarial Strategy Validation Mechanism for Decentralised Capital Management  (2506.21809 - Abgaryan et al., 13 Jun 2025) in Section 2 (Problem Formulation), Definition [Verification Cost Function]