requirements: core contracts

specification/docs/requirements.md

@@ -2,13 +2,48 @@
 
 We identify three aspects of governence: Executive, Legislative, and Judicial. Executive governance is focused on the present, day to day operations of a DAO. Legislative governance is focused on the future, and deals with the process of making changes to the operations of a DAO. Judicial governance is focused on the past, providing an opportunity for a DAO to review and reinterpret past actions.
 
+### Core Contracts
+
+The key insight of [On-Chain Governance of Decentralized Autonomous Organizations (Craig Calcaterra, 2018)](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3188374) is to use Reputation as the primary incentive mechanism for DAO members, rather than relying on fungible currency alone as the representation of a DAO member's power.
+
+Validation Pools mint and award Reputation (REP). REP can be used for staking for/against Validation Pools or staking availability to perform work, and entitles the holder to a share of DAO revenues in proportion to their REP balance. 
+
+#### Reputation
+
+1. Reputation (REP) is an ERC20 token 
+
+1. Reputation internal methods (`mint`, `burn`, `update`) may be called only by the Validation Pool contract.
+
+1. `transfer` and `transferFrom` are disabled, so that REP may not be transferred.
+
+#### Validation Pool
+
+1. Anyone may initiate a Validation Pool
+
+    1. A Validation Pool may be initated with a fee
+
+        1. Reputation (REP) is minted in proportion to the submitted fee
+
+    1. A Validation Pool must include the following parameters
+
+        1. Quorum (between 0 and 1)
+
+        1. Win ratio (between 0 and 1)
+
+        1. Binding percent (between 0 and 100%)
+
+        1. Redistribute losing stakes (boolean)
+
+        1. Target Forum Post (explained in the Judicial governance section)
+
+1. A DAO member may stake Reputation for or against a Validation Pool after the pool is initiated and before the duration elapses
+
+
 ### Executive
 
 The day to day operations of a DAO are centered around Work Smart Contracts (WSC) and Validation Pools (VPs). Customers request work; the work is assigned to an available worker; the worker submits Work Evidence (WEV); and the Work Evidence is validated by the rest of the DAO in a Validation Pool.
 
-#### Validation Pool (VP)
-
-#### Work Smart Contract (WSC)
+#### Work Smart Contract
 
 1. A Worker must be able to stake availability toward a Work Contract (WSC), specifying the duration of their availability window.
 
@@ -64,7 +99,7 @@ To achieve such a process, we introduce a Proposal mechanism. The proposal must
 
 ### Judicial
 
-Validation Pools mint and award Reputation (REP). REP can be used for voting, and entitles the holder to a share of DAO revenues in proportion to their REP balance. In the Executive governance section we outline how the DAO may police this REP minting process, and the Legislative governance section we outline the process by which the rules may be modified. Now, we need to consider that as the DAO develops new rules, it may wish to reevaluate past Reputation rewards in light of new perspectives.
+In the Executive governance section we outline how the DAO polices the REP minting process, and the Legislative governance section we outline how the DAO may modify the rules by which it operates. Now, we need to consider that as the DAO develops new rules, it may wish to reevaluate past REP rewards in light of new perspectives.
 
 To achieve such reevaluation, we introduce the Forum reference mechanism. The Forum is a collection of Posts. A Post has a unique ID and one or more authors. A post may also include weighted references to other Posts. Each Validation Pool targets a given Post. When a VP is accepted, the minted REP percolates through the Forum, to the author(s) of the targeted Post, and recursively to the Posts referenced by the targeted Post, the Posts referenced by those Posts, and so on, up to a limit determined by the Reference Chain Limit parameter.
 
@@ -76,22 +111,24 @@ A Post may also reference the Incinerator. Any reputation donated to the Inciner
 
 - Anyone may add a Post to the Forum
 
-    - A Post must have a unique identifier.
+- A Post must have a unique identifier.
+
+    - The Post ID should be a content hash.
     
-        - The Post ID should be a content hash.
-        
-        - The Post ID should correspond to an off-chain record housing the Post's content.
+    - The Post ID should correspond to an off-chain record housing the Post's content.
 
-    - A Post must have one or more authors.
+- A Post must have one or more authors.
 
-        - Each author is identified by their Wallet address.
+    - Each author is identified by their Wallet address.
 
-        - Each author has a weight. Author weights must sum to 100%.
+    - Each author has a weight. Author weights must sum to 100%.
 
-    - A Post may include zero or more references.
+- A Post may include zero or more references.
 
-        - Each reference must include a weight between -1 and 1.
+    - Each reference must include a weight between -1 and 1.
 
-        - Sum of negative weights must be >= -1.
+    - Sum of negative weights must be >= -1.
 
-        - Sum of positive weights must be <= 1.
+    - Sum of positive weights must be <= 1.
+
+    - A Post may reference the Incinerator with 0 <= weight <= 1.