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jhuffman comments on Money: The Unit of Caring - Less Wrong
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" we could write an algorithm that gives stuff and people get expert cred when they are upvoted by the established experts"
Sounds like StackOverflow (http://stackoverflow.com)
It is a domain-specific community (everything about software development), in the form of questions and answers. Reputation is earned by upvotes from other community members. Naturally, the established experts emerge as high-reputation members, being those with a long history of giving good answers.
StackExchange makes no distinction between up-votes from experts and up-votes from idiots. The way I read Risto's suggestion is that the people get cred only from up-votes from experts. This is why it has to be seeded with experts.