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OpenAlpha: A Community-Led Adversarial Strategy Validation Mechanism for Decentralised Capital Management

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  • 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.

Suggested Citation

  • Arman Abgaryan & Utkarsh Sharma, 2025. "OpenAlpha: A Community-Led Adversarial Strategy Validation Mechanism for Decentralised Capital Management," Papers 2506.21809, arXiv.org.
  • Handle: RePEc:arx:papers:2506.21809
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