diff --git a/ethereum/contracts/DAO.sol b/ethereum/contracts/DAO.sol
index fb0f9bf..0df6893 100644
--- a/ethereum/contracts/DAO.sol
+++ b/ethereum/contracts/DAO.sol
@@ -8,15 +8,20 @@ struct Stake {
     bool inFavor;
     uint256 amount;
     address sender;
+    uint256 tokenId;
 }
 
 struct ValidationPool {
     mapping(uint => Stake) stakes;
     uint stakeCount;
+    address author;
+    uint256 fee;
     uint duration;
     uint endTime;
     bool resolved;
     bool outcome;
+    uint256 tokenIdFor;
+    uint256 tokenIdAgainst;
 }
 
 struct StakeData {
@@ -84,9 +89,15 @@ contract DAO is ERC721("Reputation", "REP"), ReputationHolder {
     }
 
     /// Accept fee to initiate a validation pool
-    function initiateValidationPool(uint duration) public payable {
+    /// TODO: Rather than accept author as a parameter, accept a reference to a forum post
+    function initiateValidationPool(
+        address author,
+        uint duration
+    ) public payable {
         uint poolIndex = validationPoolCount++;
         ValidationPool storage pool = validationPools[poolIndex];
+        pool.author = author;
+        pool.fee = msg.value;
         pool.duration = duration;
         pool.endTime = block.timestamp + duration;
         // Because we need to stake part of the mited value for the pool an part against,
@@ -95,10 +106,10 @@ contract DAO is ERC721("Reputation", "REP"), ReputationHolder {
         // Implementing this with adjustable parameters will require more advanced fixed point math.
         // TODO: Make minting ratio an adjustable parameter
         // TODO: Make stakeForAuthor an adjustable parameter
-        uint256 tokenIdFor = mint(msg.value / 2);
-        uint256 tokenIdAgainst = mint(msg.value / 2);
-        stake(pool, address(this), true, tokenIdFor);
-        stake(pool, address(this), false, tokenIdAgainst);
+        pool.tokenIdFor = mint(msg.value / 2);
+        pool.tokenIdAgainst = mint(msg.value / 2);
+        stake(pool, address(this), true, pool.tokenIdFor);
+        stake(pool, address(this), false, pool.tokenIdAgainst);
         emit ValidationPoolInitiated(poolIndex);
     }
 
@@ -114,6 +125,7 @@ contract DAO is ERC721("Reputation", "REP"), ReputationHolder {
         _stake.sender = sender;
         _stake.inFavor = inFavor;
         _stake.amount = verifiedValueOf(sender, tokenId);
+        _stake.tokenId = tokenId;
     }
 
     /// Accept reputation stakes toward a validation pool
@@ -133,13 +145,13 @@ contract DAO is ERC721("Reputation", "REP"), ReputationHolder {
     }
 
     /// Evaluate outcome of a validation pool
-    function evaluateOutcome(uint poolIndex) public returns (bool outcome) {
+    function evaluateOutcome(uint poolIndex) public returns (bool votePasses) {
         ValidationPool storage pool = validationPools[poolIndex];
         require(block.timestamp >= pool.endTime);
         require(pool.resolved == false);
         uint256 amountFor;
         uint256 amountAgainst;
-        Stake memory _stake;
+        Stake storage _stake;
         for (uint i = 0; i < pool.stakeCount; i++) {
             _stake = pool.stakes[i];
             if (_stake.inFavor) {
@@ -153,9 +165,74 @@ contract DAO is ERC721("Reputation", "REP"), ReputationHolder {
         // A tie is resolved in favor of the validation pool.
         // This is especially important so that the DAO's first pool can pass,
         // when no reputation has yet been minted.
-        outcome = amountFor >= amountAgainst;
+        votePasses = amountFor >= amountAgainst;
         pool.resolved = true;
-        // Distribute reputation
-        // Distribute fee
+        // If the outcome is true, value of all stakes against the pool should be distributed among the stakes in favor.
+        // If the outcome is false, value of all stakes for the pool should be distributed among the stakes against.
+        uint256 amountFromWinners;
+        uint256 amountFromLosers;
+        // Collect the reputation from the losing stakes
+        for (uint i = 0; i < pool.stakeCount; i++) {
+            _stake = pool.stakes[i];
+            if (votePasses && !_stake.inFavor) {
+                // Transfer value to the token that was minted in favor
+                amountFromLosers += _stake.amount;
+                transferValueFrom(
+                    _stake.tokenId,
+                    pool.tokenIdFor,
+                    _stake.amount
+                );
+            } else if (!votePasses && _stake.inFavor) {
+                // Transfer value to the token that was minted against
+                amountFromLosers += _stake.amount;
+                transferValueFrom(
+                    _stake.tokenId,
+                    pool.tokenIdAgainst,
+                    _stake.amount
+                );
+            } else if (
+                votePasses &&
+                _stake.inFavor &&
+                _stake.tokenId != pool.tokenIdFor
+            ) {
+                // Tally the total value of winning stakes
+                amountFromWinners += _stake.amount;
+            } else if (
+                !votePasses &&
+                !_stake.inFavor &&
+                _stake.tokenId != pool.tokenIdAgainst
+            ) {
+                // Tally the total value of winning stakes
+                amountFromWinners += _stake.amount;
+            }
+        }
+        // Distribute reputation from losing stakes to winning stakes
+        for (uint i = 0; i < pool.stakeCount; i++) {
+            _stake = pool.stakes[i];
+            if (
+                votePasses &&
+                _stake.inFavor &&
+                _stake.tokenId != pool.tokenIdFor
+            ) {
+                uint256 reward = (amountFromLosers * _stake.amount) /
+                    amountFromWinners;
+                transferValueFrom(pool.tokenIdAgainst, _stake.tokenId, reward);
+            } else if (
+                !votePasses &&
+                !_stake.inFavor &&
+                _stake.tokenId != pool.tokenIdAgainst
+            ) {
+                uint256 reward = (amountFromLosers * _stake.amount) /
+                    amountFromWinners;
+                transferValueFrom(pool.tokenIdFor, _stake.tokenId, reward);
+            }
+        }
+
+        // Distribute fee proportionatly among all reputation holders
+        for (uint tokenId = 0; tokenId < nextTokenId; tokenId++) {
+            uint256 share = (pool.fee * tokenValues[tokenId]) / totalValue;
+            address recipient = ownerOf(tokenId);
+            payable(recipient).transfer(share);
+        }
     }
 }