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The outcomes of Augur’s prediction markets are chosen by users that hold Augur’s native Reputation (REP) token, who stake their tokens on the actual observed outcome and, in return, receive settlement fees from the markets. Augur’s incentive structure is designed to ensure that honest, accurate reporting of outcomes is always the most profitable option for REP token holders. Token holders can post progressively-larger REP bonds to dispute proposed market outcomes. If the size of these bonds reaches a certain threshold, REP splits into multiple versions, one for each possible outcome of the disputed market; token holders must then exchange their REP tokens for one of these versions. While the Augur app and its protocol run on the Ethereum platform, the native ERC20 token REP is used for payments or payouts on Augur. The Augur v2 upgrade was released in July 2020 and AugurDAO was announced in February 2022. REP holders have decisive voting power in AugurDAO’s governance.