Network participants in the Augur network, $REP holders, will be paid by the network to truthfully report event outcomes. Additionally, REP holders who vote “incorrectly” - defined as those who vote against the majority of REP holders - also lose some REP. The same is true of REP holders: they’re incentivized to vote in a way they believe all other REP holders will vote. This system works because REP holders are independent of market participants and because REP holders are global and pseudo-anonymous, making large-scale collusion nearly impossible. Bet-losers and REP holders cannot easily identify and try to coerce REP holders to collude to report a false event outcome.

Source: Forbes October 04, 2017 20:26 UTC