Crypto Corner: a profile on REP

You know the drill – it’s time to reintroduce another cryptocurrency! Give a warm welcome to Augur’s Reputation token (REP), which we introduced to the Wirex app in August.

In case you missed it or you’re not familiar with REP, here’s everything you need to know.

What’s it all about?

The REP token is the force behind the Augur software, a decentralised prediction market platform that runs on the Ethereum blockchain. Augur is used to bet on two types of markets, known as “categorical” and “scalar”.

A categorical market involves making bets with up to seven options. For instance, “Will X win Y election?” with a “yes” or “no” option, and “Who will win X/Y?” with five candidate options. On the other hand, a scalar network offers several different outcomes, such as “What will be the opening price of Alphabet stock be on 1st January 2022?”, in which traders can bet that the result will be higher or lower than a certain value.

To resolve the market, Augur uses “reporting fees”, which are used to incentivise users to report on the outcome. When this is carried out, they are rewarded with REP tokens, as well as a share of the platform’s fees during a trading event. However, if users fail to report on market outcomes accurately, they are penalised by having their REP confiscated and distributed to users who reported correctly.

How does betting work on Augur?

The Augur platform isn’t like a regular betting platform, purely because it’s decentralised. Unlike typical betting platforms that often have limited market options and high fees, Augur offers fast and guaranteed pay-outs without any third-party involvement.

In order to place a bet on Augur, this involves four main steps:

  • Market creation – a user creates a betting market based on real-world events. From there, they set where the outcome will be determined, as well as a creator fee.

  • Market trading – shares are purchased in an event’s outcome, the price of which varies depending on the number of placed bets.

  • Reporting – Augur’s oracle determines the outcome of each betting market, which is then reported on.

  • Settlement – positions are closed and pay-outs are collected.

What can you do with REP?

While users aren’t required to own or use REP on the platform to place bets, it is the only currency that can be used for outcome reporting.

When users are rewarded with REP, there are several things they can do with it. For instance, creating their own prediction market, raising a dispute on an outcome or purchasing participation tokens.

It can also be exchanged for other crypto and traditional currencies in the Wirex app. Get your hands on some REP at exclusive OTC rates, plus spend it in real-life with your multicurrency Wirex card.

Who came up with the idea?

The Augur network was created and developed by the Forecast Foundation, which was co-founded in 2014 by Jack Peterson, Joey Krug and Jeremy Gardner.

Augur held its initial coin offering (ICO) in 2015, selling 8.8 million REP tokens and raising $5.5 million in funding. The platform then went live three years later, with $1.53 million REP coins staked across over 800 outcome bets in its first month.

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Nice REP

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Hello REP!

REP 's a new one for me, thanks for the info :slight_smile: