What is Reputation ($REP)?
Reputation is the token behind Augur, and can be thought of as the “score” of an individual participant within Augur. Reputation is not an investment, but rather a tool necessary to make Augur work. The vast majority of Augur participants will never hold, see, or need to use Reputation. However, it’s extremely important to understand how Reputation works in order to fully grasp the Augur platform.
Reputation tokens are limited to a fixed supply of 11,000,000, of which 80% was sold in our public token sale last year for a collective ~$5,300,000. Those who hold Reputation are expected to report accurately on the outcome of randomly selected events within Augur every few weeks. If holders fail to report accurately on the outcome of an event, or attempt to be dishonest – the Augur system redistributes the bad reporters Reputation to those who have reported accurately during the same reporting cycle.
It’s important to note that you do not need Reputation to use Augur. Reputation is only used by reporters to report on the outcomes of events. Regular participants making bets on the platform will use Ether, or any other Ethereum sub currency. We hope to see the utilization of stable-coins in the future for settlement of markets.
What are the benefits of owning $REP?
By owning Reputation and participating in the accurate reporting on the outcomes of events, you are entitled to a portion of Augurs market fees. Each Reputation token entitles you to 1 / 22,000,000 of Augurs total market fees. The more Reputation you own and report correctly with, the more in fees you will collect. The Repulator Calculator made by an Augur community member will give you a rough estimate of expected earnings.
How do I purchase $REP?
If you missed out on purchasing during the token sale, you can still get your hands on some REP. Reputation is now sold on a number of third party crypto exchanges and markets, including Poloniex, Kraken, Bittrex, Gatecoin, and ShapeShift.
Please be careful and weary of OTC trades in Slack groups, Bitcoin forums, etc. It’s suggested to purchase through an exchange for the increased safety of your trade. If you are looking to purchase a large amount, it’s recommended that you get in contact with an Augur team member and we can help point you in the right direction.
How do I safely store my $REP?
It is highly recommended that you store your Reputation in an offline, cold storage solution. Please do not leave large crypto holdings on centralized exchanges. Nor should you have a backup of your private key in your email, on your desktop, in your Google Drive, etc.
The Ledger Nano S is a great hardware wallet solution, supporting all ERC-20 Ethereum token types. Your Reputation will be safe on one of these. We hope to have Augur support Ledger integration, meaning you can participate on Augur without ever having Reputation leave your Ledger.
If you have any questions regarding Reputation, please contact us at firstname.lastname@example.org.