Paper: arXiv 2506.21809

Authors: Arman Abgaryan, Utkarsh Sharma

Abstract

We propose \textit{OpenAlpha}, a community-led strategy validation framework for decentralised capital management on a host blockchain network, which integrates game-theoretic validation, adversarial auditing, and market-based belief aggregation. This work formulates treasury deployment as a capital optimisation problem under verification costs and strategic misreporting, and operationalises it through a decision waterfall that sequences intention declaration, strategy proposal, prediction-market validation, dispute resolution, and capital allocation. Each phase of this framework’s validation process embeds economic incentives to align proposer, verifier, and auditor behaviour, producing confidence scores that may feed into a capital allocation rule. While OpenAlpha is designed for capital strategy assessment, its validation mechanisms are composable and extend naturally to evaluating external decentralised applications (DApps), enabling on-chain scrutiny of DApp performance, reliability, and integration risk. This architecture allows for adaptive, trust-minimised capital deployment without reliance on centralised governance or static audits.

Complexity vs Empirical Score

  • Math Complexity: 6.5/10
  • Empirical Rigor: 2.5/10
  • Quadrant: Lab Rats — theoretically deep, empirically untested

Why this score: The paper provides a formal game-theoretic and Bayesian optimization framework for decentralized strategy validation. However, as a conceptual mechanism design paper, it lacks empirical backtesting, real-world data validation, or implementation code.

Research Flowchart

  flowchart TD
    A["Research Goal: Trust-minimised & adaptive decentralised capital deployment"] --> B["Data Inputs: Strategic Proposals, Market Beliefs & Dispute Evidence"]
    B --> C["OpenAlpha Decision Waterfall Process"]
    C --> D1["1. Intention Declaration & Strategy Proposal"]
    C --> D2["2. Prediction-Market Validation & Game-Theoretic Auditing"]
    C --> D3["3. Dispute Resolution & Economic Incentive Alignment"]
    D1 & D2 & D3 --> E["Computational Process: Confidence Score Generation & Capital Allocation Rule"]
    E --> F["Key Outcome: Decentralised Treasury Optimisation & Composable DApp Auditing"]

Cited References (4)

  1. Combinatorial information market design (2003)
  2. Principles of Mathematical Analysis (1976)
  3. Sharing clusters among related groups: Hierarchical Dirichlet processes (2004)
  4. Parimutuel betting under asymmetric information (2008)

0 of 4 cited works are in the corpus; resolved via arXiv source bundles, Semantic Scholar and OpenAlex. Corpus-wide: 2518 linked papers.