This week I made some thought toward the module design. We have agreed on having 6-7 pins per module. One pin will be gnd, one pin will be Vdd, 3 pins will be designated as the identifier of the module via binary, and the last pin(s) will be for transmitting data from the module to the arduino.
I also made the order for 2 arduino leonardos. I have started some preliminary research on the peripherals needed for the modules. I found this potentiometer that has infinite rotation but it requires two data pins. We also might look into encoders but those are not passive devices..