Editing Scholarship DAO (section)

=== Initiation of a Scholarship DAO ===
How does it start? This is the most difficult step to explain. It starts as an entirely charitable fund. Donate money to a scholarship treasury and get REP. When the first person gets a REP token, they decide how the salary for that token is going to work. E.g., any money the REP token earns is given as a scholarship to a worthy recipients. The scholarship is distributed programmatically, in whatever increments and rate the donor chooses.

When the 2nd person gets REP it’s because they brought money to the Scholarship DAO. That money goes to the older donor's REP salary which goes to the older person’s scholarship recipients. When the 3rd person brings in money, they get REP instead and the money is split between the previous two people to give to their chosen causes. How REP expires or attenuates is determined by the DAO according to [[Reputation tokenomics|REP tokenomics principles]]. For example, a DAO may choose the protocol that dictates a REP token expires once its initial present value is distributed to scholarship recipients. Alternatively, REP may expire later to encourage older members of the DAO to participate.