Editing Validation Pool (section)

== Pseudocode ==
An instantiation of VPSC flow on Ethereum is described as follows:

<code>1. Accept three initial inputs</code> :                         #Usually the inputs come from the Work Smart Contract
:* <code>Address of a Forum post</code>.                          #This address in the [[Forum]] typically holds the information that the Validation Pool is called to vote on. It also typically includes pointers to previous posts in the Forum, i.e., references. In this case the post is associated with a type of REP, which is the root post in the sub-DAG determined by the pointers. If no pointer is included, it is a root post and therefore a new expertise tag. An expertise tag is simply the address of the Ethereum transaction that is a root post, but it will also have a human readable name such as E500. If a pointer is included, the post is a new leaf on an existing expertise tree.
:* <code>an ether-based fee</code>.            #The fee would ideally be denominated in a robust stable coin to give the DAO business predictability.
:* <code>REP</code>.            #The REP is typically the Worker's REP which was encumbered from the ASC and sent to the WSC according to [[DAO Governance Framework#DGF workflow|DGF workflow]].  [[File:DGF flow.png|thumb|Flowchart for Ethereum instantiation of pseudocode]] 
<code>2. Mint new reputation tokens in the relevant type of REP tag in proportion to the amount of the fee</code>.  

                         #For example, if the human readable name of a DAO's expertise tag is E500, the newly minted tokens in E500 will be ERC-20 tokens of the type XRP-E500. 

<code>3. Stake half the new reputation tokens in the poster’s name along with the other optional reputation tokens the poster sent as an upvote bet. Stake the other half of the newly minted tokens against the post as a downvote</code>.          #This choice of <math display="inline">p=1/2</math> stake is a tunable parameter in the full version, subject to governance.

<code>4. Broadcast the opening of the betting pool to the network.</code>     #This means the address of the post (and automatically, therefore the relevant expertise tag) is broadcast with a deadline for submitting relevant reputation tokens as upvotes or downvotes on the post. The deadline is another tunable parameter, subject to governance

<code>5. Collect, count, and compare the upvote and downvote reputation tokens to decide the winner.</code>                 #See above specifications.        

<code>6. Publish the result and distribute the reputation stakes from the losing side to the winners, weighted according to stakes.</code>

<code>7.    Distribute the remaining ether fee (after paying necessary gas) as the REP salary to all owners of REP tokens in the expertise tag, weighted according to their holdings.</code>