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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.

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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]