Time and Cost

The entire process's cost can be estimated starting from the lead auditor's price and engagement duration.

As previously mentioned, the lead auditor estimates the duration for Phase 1 as $L_P$ days, and the Host sets the time for the remaining phases as $L_B, L_C$, and $L_F$ days.

Due to the dynamic pool structure, the lead auditor is motivated to estimate the duration optimally.

Let's assume the lead auditor's daily cost for 100% dedication is $C_L$.

We estimate the lead auditor's dedication for each phase: $D_P = 100$%, $D_B = 50$%, $D_C = 100$%, $D_F = 0$%$.

The total cost for the lead auditor can be estimated as $C_L$ * ($L_P$ * $D_P$ + $L_B$ * $D_B$ + $L_C$ * $D_C$) = $C_L$ * ($L_P$ + $L_B$/2 + $L_C$).

Assuming the lead auditor outperforms the public auditors, the lead auditor will receive $P_L + P_D$ % of the reward pool (50% for the default structure). So, we can estimate the entire reward pool (i.e., the total cost) as $C_L$ * ($L_P$ + $L_B/2$ + $L_C$) * 100 / ($P_L + P_D$).

The total turnaround time can be estimated as $L_P + L_B + L_C + L_J + L_F$ days.

Example: Assuming the lead auditor's engagement cost is $C_L = 2000$ per day and he estimated the duration for Phase 1 as $L_P = 10$ days. With the default pool structure and the duration of other phases as $L_B = L_P = 10$, $L_C = 5$, the total cost would be 2000 * (10 + 10/2 + 5) * 100 / (30 + 20) = 80,000, and the complete turnaround would be approximately a month, probably including the mitigation turnaround.

We note that the above is only an essential estimation in theory.