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 LPL_P days, and the Host sets the time for the remaining phases as LB,LCL_B, L_C, and LFL_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 CLC_L.

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

The total cost for the lead auditor can be estimated as CLC_L * (LPL_P * DPD_P + LBL_B * DBD_B + LCL_C * DCD_C) = CLC_L * (LPL_P + LBL_B/2 + LCL_C).

Assuming the lead auditor outperforms the public auditors, the lead auditor will receive PL+PDP_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 CLC_L * (LPL_P + LB/2L_B/2 + LCL_C) * 100 / (PL+PDP_L + P_D).

The total turnaround time can be estimated as LP+LB+LC+LJ+LFL_P + L_B + L_C + L_J + L_F days.

Example: Assuming the lead auditor's engagement cost is CL=2000C_L = 2000 per day and he estimated the duration for Phase 1 as LP=10L_P = 10 days. With the default pool structure and the duration of other phases as LB=LP=10L_B = L_P = 10, LC=5L_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.

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