Decentralized predictions market Augur has taken some big steps to stomp-out nefarious actors on its platform, the firm told The Block.
Augur allows users to create a market based on the outcome of an event, with actors buying shares of the outcome whether that be “yes” shares or “no” shares or something more complicated. When the outcome occurs, those who bet the winning outcome see an ether payout – 1 per share for a winning bet in a yes/no scenario and none for a losing bet. However, in an invalid outcome, which occurs when an outcome is unverifiable, yes and no shares each receive a 0.5 payout. Essentially, in an invalid market, the 1 is distributed evenly among the number of outcomes.