Current system makes it harder to enjoy the game, as the players wishing to do well are forced to be in game for about 2 hours prior to their payout, so the game defeats its very purpose of existence to provide fun and relaxation. A much better system would (for both squad and fleet arena):
1. Reward players for the highest rank they obtained within the 24 hours since their last activities reset.
2. Makes player immune to be challenged after a victory until the 10 minute arena cooldown timer expires.
3. Prevent players from fighting ranks below when they are in ranks 2 or 3.
4. Immediately remove all remaining daily attempts once rank 1 reached to give more of an opportunity to others to reach rank 1.
5. Players reaching ranks 1, 2 or 3 are awarded (no more than 3 per day) arena victories equal to the jump length (e.g. jumping from 3 to 1 would award 2 victories) for the sake of "Arena Fight" achievement.