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by aianus 3659 days ago
It's my understanding that the Augur project solves this issue by decentralizing the reporting.

That is, individuals vote for which outcome is correct in proportion to their balance of 'reputation'. If an individual votes for the correct outcome (as determined by the majority of votes), they gain reputation, otherwise they lose it.

Reputation is valuable because it entitles voters to a share of the platform fees. Therefore there is a strong incentive to play fair in order to grow the platform and the value of one's reputation (similar to miners in Bitcoin).

https://augur.zendesk.com/hc/en-us/articles/208857885-For-Re...
1 comments
Natanael_L 3659 days ago
Sounds like somebody can dump in money to skew all the reputation scores.
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aianus 3659 days ago
As in buying a lot of REP and faking an outcome?

You could do that but the idea is that the hit to your REP value from screwing people over will be greater than any illicit profits you may gain.

Similar to why your drug dealer doesn't just point a gun at you, take your cash, and keep the drugs; he can make more money being an honest long-term dealer to you.

link