On the platform Augur appeared the so-called “market of death”, when users make a bet on when certain public figures die.
The Augur platform, which operates on the basis of Ethereum (ETH), users can predict the outcome of any event and to bet on your prediction.
If the user believes that some event will happen, they acquire a certain percentage with the help of ETH. If the user believes that the event does not occur, he puts against it.
Recently appeared to Augur bets on the death of a number of public figures such as US President Donald trump and CEO of Berkshire Hathaway Warren Buffett. Rate “Will be killed by Donald trump (President of USA) to 2018”, as of 23 July, received more than 50 shares.
It not the first case of the emergence of such a market. In 2013 was established online marketplace where users were going to Fund the murder of Ben Bernanke and us President Barack Obama. Although in the case of Augur, users simply place a bet on whether there will be this event or not,theoretically the fees at some point may become sufficiently high that someone has committed a crime.
Given the decentralized nature of the platform is unclear, just close this “market of death” nobody, not even the creators of the platform, it can’t.
The features of this platform are best considered in the example. Assume that the user Augur wants to know if they will kill Donald trump in 2018. In this case it creates a new market projections and produces a certain number of shares (shares), each of which can be bought by supporters or opponents of this outcome. The nominal value of each share is 1 dollar, but the market price will be divided in proportion to the opinion of the users involved in the forecast. For example, if 40% of users believe that the tramp is killed, the cost of voting “for” of $0.4 and against the remaining $0,6.
The parties to the dispute, voted for the correct prediction receive nominal value of the share. If in 2018 Donald trump for any reason, will die a violent death, users who have invested 40 cents, will receive $ 1 to your account. As a result, the participants Augur answer for every prediction of his own money.
Since the system is decentralized, the occurrence of each event, confirm arbitrators — the user that owns the token REP. As a result of collective voting, they determine what the outcome should recognize winning. For their activities the arbitrators receive a small Commission, and any attempt of fraud leading to cancellation of cryptocurrency.
The REP token is created on the Ethereum platform. For this reason, the cryptocurrency cannot Augur mine. It is only by working as a referee or purchase cryptocurrency exchange.
At this point the REP is trading around US $ 30, according to Coinmarketcap.