Augur, a new decentralized prediction market platform that could catch on as an online wagering platform, has scheduled crowd-sale of its reputation tokens, according to the International Business Times.
The tokens are used as the mechanism to report on and verify completed events, resulting in a payout.
REPs, which go on sale on 17 August for 45 days until October 1, will be sold via Augur.net. The number of REP tokens being sold is 11 million.
Augur’s creators say it will show the power of prediction markets by harnessing the “wisdom of crowds” – the idea that no single person or expert or small group of experts can have a monopoly on the truth at all times, according to the Times.
Augur uses a decentralized network combined with an immutable blockchain to record predictions and outcomes. Prediction markets can be established in anything from politics, sports, product prototyping, the weather, academic research and endless array of other possible future outcomes.
Augur accepts both Bitcoin and ether virtual currencies.
The company said that its crowd-sale process will “support development and maintenance of the Augur platform, and associated legal, promotional, administrative and logistical expenses involved in securing its widespread adoption and success.
“It will identify those who most highly value the platform, it’s goals and its future. This is vital because REP token buyers will be the system’s judges/referees/reporters/oracles responsible for reliably and collectively deciding whether predicted events on the system happened or not,” officials said.
The release of Augur has caused speculation that it could become an alternative to regulated online gambling sites, especially since it is administered by its anonymous users and takes virtual currency, making it almost impossible for law enforcement to target.
