Augur is a peer-to-peer protocol for prediction markets, in which users receive payouts when they predict a winning outcome. Augur is a set of open-source smart contracts, coded in solidity, that can be deployed on the Ethereum blockchain. When executed, these smart contracts settle payments in ETH with participating users. Augur operates with two cryptocurrencies. REP (or reputation) is a staking token used by reporters to clarify disputes on outcomes of the prediction market. Augur aimed to eliminate the risk of self-interested behavior, corruption and theft by decentralizing the prediction markets. The protocol operates through automated executable smart contracts that pull information from augur’s oracle, a source of information flowing from the real world to the blockchain. Augur markets flow in stages of creation, trading, reporting and settlement. The REP supply is capped at 11 million tokens, and when REP is earned it is received from another reporter on the network. When reporters report an outcome incorrectly, they are penalized, as are those users who do not participate in reporting. The REP taken as a penalty is then able to be earned by reporters correctly reporting real-life events, along with the reward of dynamically adjusted settlement fees.
Original author – Jack Peterson
Initial release – 28 July 2020
Development status – Active
Website – augur.net