Last week on [Cryptotokens.io](http://www.cryptotokens.io/), we established a framework for thinking about evaluating crypto token-based protocols. Today, we'd like to use that framework to evaluate one of the most interesting crypto token-based protocols being worked on right now: [Augur](https://www.augur.net/). 

Here's some thoughts on the Augur team, the problem being solved, the type of token issued, the method of token distribution, and the economics.

https://steemimg.com/images/2016/09/06/ABSkRILp4X2UAAAAAElFTkSuQmCCb3f02.png

# Joey Krug and team have been thoughtful and transparent in the launch of the protocol
[Joey Krug](https://twitter.com/joeykrug447) is a core developer that you should get to know if you're interested in the space. Joey dropped out of Pomona College to start working on crypto projects in 2014. He is now the leading core dev of Augur and was also one of 29 people to be honored with the prestigious [Thiel Fellowship](http://thielfellowship.org/), which offers entrepreneurs $100,000 to drop out of college and pursue their entrepreneurial endeavors. Joey is one of a handful of coders in the world that knows how to write smart contracts, developing the skills as a result of building Augur for several years.

The Augur team has been transparent throughout the launch of the token and building of the protocol. Here's a presentation that Joey gave at Coinbase recently:

https://www.youtube.com/watch?v=kvWtGIgjkV4

# Augur is enabling global prediction markets, which don't currently exist because of regulation
Prediction markets have been around to some extent since the late 90s, when [Intrade](https://en.wikipedia.org/wiki/Intrade) emerged as a leading prediction market for everything from sports to politics to American Idol. In 2012, Intrade was forced to ban US users and in 2013 it was shut down completely. 

Regulation has prevented innovation in prediction markets from thriving since even though they could be incredibly valuable to the world, much like regulation had prevented a global digital currency to emerge before Bitcoin. Augur is a decentralized protocol that allows users to take control of their own data to both make prediction markets and bet on markets.

# REP is an equity token
The REP that the Augur team issued to raise $5.3M in October 2015 is an equity token built on top of Ethereum. 

Users of Augur that want to place bets on prediction markets do not need to own REP (ETH is used to make bets on the platform). REP is required for the oracles on the Augur network to report results of bets. In return for that service, REP holders earn fees for bets. 50% of all trading fees on Augur go directly to REP token holders.

# Distribution of REP is fixed
There was a one-time issuance of 8.8M REP in October 2015. At that time, 8.8M REP was sold for $5.3M. There is 11M in total that will ever be created, and the Augur core team plans to distribute the remaining 2.2M REP to the team/advisers (16%) and to the Forecast Foundation (4%), a non-profit which will be formally responsible for managing the maintenance, enhancement and promotion of the platform.

# The economics of REP are straight forward
In Augur, there is just one token (REP) and REP is issued on a fixed basics. There is not the complicated economics associated with many other crypto tokens. REP is not intended to be a digital currency, and the economics are pretty straightforward -- if you own REP and provide the service for the system, you will be rewarded.

# Public launch is coming very soon

You can check out a beta version of the Augur product [here](https://app.augur.net/markets). REP will start trading publicly and anyone will be able to use the prediction market on the Ethereum mainnet later this fall.

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