What is Augur (REP)?
Augur is a trustless, decentralized oracle and platform for prediction markets. The outcomes of
Augur’s prediction markets are chosen by users that hold Augur’s native Reputation token (REP), who
stake their tokens on the actual observed outcome and, in return, receive settlement fees from
the markets. Augur’s incentive structure is designed to ensure that honest, accurate reporting of
outcomes is always the most profitable option for Reputation token holders. Token holders can post
progressively-larger Reputation bonds to dispute proposed market outcomes. If the size of these
bonds reaches a certain threshold, Reputation splits into multiple versions, one for each possible
outcome of the disputed market; token holders must then exchange their Reputation tokens for one
of these versions. Versions of Reputation which do not correspond to the real-world outcome will
become worthless, as no one will participate in prediction markets unless they are confident that the
markets will resolve correctly. Therefore, token holders will select the only version of Reputation which they know will continue to have value: the version that corresponds to reality.
Real World Example:
Augur is not a prediction market, it is a protocol for cryptocurrency users to create their own prediction markets. Augur is a set of open source smart contracts that can be deployed to the Ethereum blockchain. The Augur protocol is nothing more than open source software, and individual users of the Augur protocol are the ones that create prediction markets using the Augur protocol. The Forecast Foundation has zero involvement in the creation of individual prediction markets on the Augur protocol, and the Forecast Foundation is not "Augur".
Augur is named after the Roman seers, or “augurs,” who predicted the future by observing the flight patterns of birds. The logo was a pyramid, with three points converging upon an all-seeing eye.
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