Augur (REP), which stands for Reputation and in its current version is called REPv2, is an ERC-20 token native to the Augur protocol, which aims to provide a platform for anyone to create a market for betting on the outcomes of any real-world events. Its developer, Forecast Foundation, is of the oldest surviving crypto projects, founded in 2014 and boasting Vitalik Buterin as a consultant at one point.

Augur was launched as an answer to the traditional betting services — usually large centralized corporations which control the process and take a cut of the winnings. The way Augur works is pretty simple: a market creator uses his or her tokens as a bond to set up a betting market, either for an event with a set list of outcomes (categorical market) or a numerical outcome within a certain range (scalar market). Other users can then bet on an outcome by buying shares. When the event in question occurs, a designated reporter broadcasts the outcome to the network, which triggers a payout to the winners of the bet and return of the market creator’s bond. Since reporters must stake their REP, they’re incentivized to provide the correct information, otherwise, their stake is lost. The same goes for the market creators, who do not get their bond back in case of fraud. REP is also used in disputes.