The latest decentralized prediction market took off with its crowdsale on Aug.17 with flying colors. As of this writing, the crowdsale has raised over $1.7 million in BTC and ETH. It is astounding to witness that in a span of two days, the raised amount proved that the new concept has the ability to turn into a triumph.
Crowdsale and reputation
A crowdsale is imperative for Augur to work. Ideally, creators wanted to elude this method of funding for distribution of tokens. But for the decentralized system to work, an oracle system is required to guarantee respectable reporting of events.
Reputation (REP) is the foundation that gives legitimacy to all phenomenon and occurrences. Contributors, also considered as reporters, are to update the events using REP as insurance for their claims on the happenings present on the prediction markets.
Token sale commences
Interested parties may buy the reputation tokens together with the discounts offered obtainable until Sept. 5. Discount rates will decline as explained below:
From Aug. 17 to Aug. 22, 12:00pm, discount rate is 15 percent. Aug. 22 to Aug. 27, 12:00pm, 10 percent discount. Lastly for Aug. 27 to Sept. 5, 12:00pm, a final five percent discount extends to users. Furthermore, investors who wish to buy reputation tokens from Sept. 5 until the last day of sale will not be eligible for discounts.
All of the 11 million tokens will go to both investors and contributors of Augur. Contributors can expect to have a share of the 8.8 million reputation tokens available for public sale.
Come October, the crowdsale will end, and all holdings will have been distributed by that time. REP holdings are dynamic, theoretically, in the sense that the first person who purchased the tokens would have laid claim to all 8.8 million. But as more people buy in, that percentage diminishes, making it impossible to leave any tokens unsold.
Moreover, Augur is a non-profit organization, which means proceeds accumulated from the crowdsale will benefit further development of the platform to achieve its mission. Also, Bitcoin sports betting on Augur will help attract more buyers.
BTC and ETH are currently the only two currencies accepted directly to purchase tokens. Fortunately, those who wish to invest using a different cryptocurrency can do so with the help of a third party. Augur has partnered with ShapeShift, which allows instant conversion of currencies. Consequently, this collaboration will enable the prediction market to adopt a vast number of digital currency users across the globe.
On another note, Augur’s estimated launch date that fell on the first quarter of 2015 was moved toward the first quarter of 2016. By then, users can anticipate betting on any event using their choice of cryptocurrency and experience the same excitement betting on Bitcoin games give. Augur’s token system pledges to change forecasting, convinced that people do not have to rely on inferior sources of prediction of future outcomes.