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Author Topic: Decentralized prediction market Augur raises over 9000 BTC in one week  (Read 233 times)

Titulaer

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What people can buy in the Augur crowdsale is Reputation (REP). REP tokens can be used to report on events.

From what I understand, this is roughly how it works:
1. someone adds a prediction market with a statement, like: "The Bitcoin price will be at $1000 before the end of the year."
2. gamblers bet on this market (yes or no) - they pay a small fee
3. after the event occurred, REP holders will report on the event: it happened or it didn't happen
4. the wagered money will be divided over the winning gamblers, the fees will be divided over the majority of the REP holders

REP holders that chose the wrong answer or that didn't report, will lose REP.

A better explanation of Augur and Reputation can be found here (with infographic):
http://www.augur.net/blog/what-is-reputation

I'm not sure if it is going to work, but I do think this is an interesting concept.

NxtChg

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Re: Decentralized prediction market Augur raises over 9000 BTC in one week
« Reply #1 on: August 24, 2015, 01:00:10 pm »
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The first thing that comes to mind, is a huge incentive for REP holders to sell their vote and for gamblers to find those holders and influence them.

Seems like a fragile system, although if there are thousands of them, maybe it will all work out.
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