Editing Reputation (section)

=== REP Token Minting Mechanism ===
''Reputation tokens (REP) are minted when a fee is paid to the DAO. Ownership of REP is determined by the work done to earn that fee. The fee is distributed to the entire group, proportionately according to ownership of past REP.''

This basic mechanism is the heart of the entire DGF. The mechanism gives REP tokens for work, delaying the fungible cash money reward and diffusing it to the entire group. The smart contract that governs the REP Token Minting Mechanism is called the [[Validation Pool]] (VPSC). 

==== DAO workflow ====
To clarify the process for minting and distributing REP, here is the explicit DAO’s workflow:

1.      A public outsider (non-member of the DAO) asks the DAO for work in return for a cash fee.

2.      The DAO chooses a member to do work for the outsider.

3.      The member does the work for the outsider.

4.      Outsider gives the fee to the DAO.

5.      The DAO mints new REP for the worker, if the work was done properly (as determined by the Validation Pool).

6.      The DAO shares the fee with everyone who already has REP.

In the course of the workflow, the fees the DAO earns are not given to the member who did the work to bring in the fee. Instead, the fees are shared with everyone in the DAO, proportional to their REP holdings. This is called the REP salary.