What Is Augur?
Augur is a platform for making predictions on any future events that can have two possible outcomes. Users are rewarded for correctly choosing the outcome of an event.
REP is an Ethereum-based token and the cryptocurrency of the Augur platform. There are a total of 11 billion tokens. While you can exchange REP like other cryptocurrencies, as its own creators have stated, it is not a currency per se. It is a tool for the Augur platform. Although it is not necessary to use REP for betting on events, REP holders can propose events and their possible outcomes for other users to bet on. REP holders stake their coins on the correct outcome and receive rewards in the form of a commission from the user fees. As Augur is a decentralized platform, REP holders themselves are responsible for the honesty and impartiality of the decisions made with REP tokens. That way REP holders can guarantee that the outcome that is considered correct has really occurred. This mechanism ensures that the outcomes set for the bet are valid, and the users reporting on whether the particular outcome of an event has taken place are honest in their reporting.
Pros and Cons of Augur
Advantages of REP
- Participating in an original and interesting project, valued by crypto-enthusiasts and investors
- A large community following that shows potential for future growth (more than 10 thousand subscribers on the subreddit r/Augur, 132+ thousand followers on Twitter, and 17+ thousand on Facebook)
Disadvantages of REP
- Investments in REP will not generate passive income, as REP cannot be deposited to gain interest, but only actively traded or used for staking on the correct outcomes on the prediction platform