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Aug 27, 2017 · 22m · top-founders

764: He Raised $5.3m in Token Offering on Etherum Blockchain to help you bet on future events

Jack Peterson · 11m spoken Nathan Latka · 8m spoken
0:00 / 0:00

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In this episode of 'The Top,' host Nathan Latka interviews Augur co-founder Jack Peterson about building a decentralized prediction market protocol on the Ethereum blockchain. Peterson details how Augur enables peer-to-peer trading on future events, explains their $5.3 million token offering, and discusses smart contract mechanics and REP token oracle governance.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 40.7% of the talking time here. How this is scored →

Nathan as informed peer 2.3 Guest teaching 4.0 Guest disagreement 1.3 Nathan pushing back 2.3
05100:0010:0020:001:10–3:42 · Nathan as informed peer 4/10 Introducing Jack Peterson and Augur's Ethereum Architecture Latka introduces Augur's connection to Ethereum and demonstrates domain awareness by referencing his prior interview with Ethereum co-founder Anthony Di Iorio. Peterson collaboratively explains the concept of smart contracts acting like a decentralized database.3:42–6:26 · Nathan as informed peer 2/10 Understanding Prediction Markets and Event Creation When Latka asks Peterson to pitch the audience, Peterson corrects him by noting the platform is not yet live. Latka pushes him to describe hypothetical live usage and openly admits that he and his listeners are lost regarding the mechanics of prediction markets.6:26–11:01 · Nathan as informed peer 2/10 Mechanics of Market Liquidity, Shares, and Payouts Latka struggles to grasp how bets and shares work, repeatedly asking basic questions about order books and pricing. Peterson patiently educates him on how share prices reflect implied probability and resolve to either one dollar/ether or zero upon event completion.11:01–16:31 · Nathan as informed peer 2/10 User Onboarding and Bridging Fiat to Cryptocurrencies Latka presses on how fiat connects to crypto betting, demanding Peterson speak as if the product were already fully built. Peterson clarifies that Augur does not custody fiat or act as a money transmitter, walking Latka through third-party fiat onramps and peer-to-peer liquidity matching.16:31–20:26 · Nathan as informed peer 3/10 Fundraising Details and REP Token Governance Peterson rejects Latka's 'ICO' terminology, explaining that the REP token functions as a reporting and market-resolution mechanism rather than equity or profit-sharing. Latka probes into the $5.3M raise and how crypto was converted to cover fiat payroll.20:26–21:30 · Nathan as informed peer 1/10 The Famous Five Rapid-Fire Questions Latka runs through standard rapid-fire questions covering favorite cryptography books, CEOs, and personal routine, with Peterson providing direct and concise answers.1:10–3:42 · Guest teaching 3/10 Introducing Jack Peterson and Augur's Ethereum Architecture Latka introduces Augur's connection to Ethereum and demonstrates domain awareness by referencing his prior interview with Ethereum co-founder Anthony Di Iorio. Peterson collaboratively explains the concept of smart contracts acting like a decentralized database.3:42–6:26 · Guest teaching 4/10 Understanding Prediction Markets and Event Creation When Latka asks Peterson to pitch the audience, Peterson corrects him by noting the platform is not yet live. Latka pushes him to describe hypothetical live usage and openly admits that he and his listeners are lost regarding the mechanics of prediction markets.6:26–11:01 · Guest teaching 6/10 Mechanics of Market Liquidity, Shares, and Payouts Latka struggles to grasp how bets and shares work, repeatedly asking basic questions about order books and pricing. Peterson patiently educates him on how share prices reflect implied probability and resolve to either one dollar/ether or zero upon event completion.11:01–16:31 · Guest teaching 6/10 User Onboarding and Bridging Fiat to Cryptocurrencies Latka presses on how fiat connects to crypto betting, demanding Peterson speak as if the product were already fully built. Peterson clarifies that Augur does not custody fiat or act as a money transmitter, walking Latka through third-party fiat onramps and peer-to-peer liquidity matching.16:31–20:26 · Guest teaching 4/10 Fundraising Details and REP Token Governance Peterson rejects Latka's 'ICO' terminology, explaining that the REP token functions as a reporting and market-resolution mechanism rather than equity or profit-sharing. Latka probes into the $5.3M raise and how crypto was converted to cover fiat payroll.20:26–21:30 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions Latka runs through standard rapid-fire questions covering favorite cryptography books, CEOs, and personal routine, with Peterson providing direct and concise answers.1:10–3:42 · Guest disagreement 0/10 Introducing Jack Peterson and Augur's Ethereum Architecture Latka introduces Augur's connection to Ethereum and demonstrates domain awareness by referencing his prior interview with Ethereum co-founder Anthony Di Iorio. Peterson collaboratively explains the concept of smart contracts acting like a decentralized database.3:42–6:26 · Guest disagreement 2/10 Understanding Prediction Markets and Event Creation When Latka asks Peterson to pitch the audience, Peterson corrects him by noting the platform is not yet live. Latka pushes him to describe hypothetical live usage and openly admits that he and his listeners are lost regarding the mechanics of prediction markets.6:26–11:01 · Guest disagreement 1/10 Mechanics of Market Liquidity, Shares, and Payouts Latka struggles to grasp how bets and shares work, repeatedly asking basic questions about order books and pricing. Peterson patiently educates him on how share prices reflect implied probability and resolve to either one dollar/ether or zero upon event completion.11:01–16:31 · Guest disagreement 2/10 User Onboarding and Bridging Fiat to Cryptocurrencies Latka presses on how fiat connects to crypto betting, demanding Peterson speak as if the product were already fully built. Peterson clarifies that Augur does not custody fiat or act as a money transmitter, walking Latka through third-party fiat onramps and peer-to-peer liquidity matching.16:31–20:26 · Guest disagreement 3/10 Fundraising Details and REP Token Governance Peterson rejects Latka's 'ICO' terminology, explaining that the REP token functions as a reporting and market-resolution mechanism rather than equity or profit-sharing. Latka probes into the $5.3M raise and how crypto was converted to cover fiat payroll.20:26–21:30 · Guest disagreement 0/10 The Famous Five Rapid-Fire Questions Latka runs through standard rapid-fire questions covering favorite cryptography books, CEOs, and personal routine, with Peterson providing direct and concise answers.1:10–3:42 · Nathan pushing back 1/10 Introducing Jack Peterson and Augur's Ethereum Architecture Latka introduces Augur's connection to Ethereum and demonstrates domain awareness by referencing his prior interview with Ethereum co-founder Anthony Di Iorio. Peterson collaboratively explains the concept of smart contracts acting like a decentralized database.3:42–6:26 · Nathan pushing back 3/10 Understanding Prediction Markets and Event Creation When Latka asks Peterson to pitch the audience, Peterson corrects him by noting the platform is not yet live. Latka pushes him to describe hypothetical live usage and openly admits that he and his listeners are lost regarding the mechanics of prediction markets.6:26–11:01 · Nathan pushing back 3/10 Mechanics of Market Liquidity, Shares, and Payouts Latka struggles to grasp how bets and shares work, repeatedly asking basic questions about order books and pricing. Peterson patiently educates him on how share prices reflect implied probability and resolve to either one dollar/ether or zero upon event completion.11:01–16:31 · Nathan pushing back 4/10 User Onboarding and Bridging Fiat to Cryptocurrencies Latka presses on how fiat connects to crypto betting, demanding Peterson speak as if the product were already fully built. Peterson clarifies that Augur does not custody fiat or act as a money transmitter, walking Latka through third-party fiat onramps and peer-to-peer liquidity matching.16:31–20:26 · Nathan pushing back 3/10 Fundraising Details and REP Token Governance Peterson rejects Latka's 'ICO' terminology, explaining that the REP token functions as a reporting and market-resolution mechanism rather than equity or profit-sharing. Latka probes into the $5.3M raise and how crypto was converted to cover fiat payroll.20:26–21:30 · Nathan pushing back 0/10 The Famous Five Rapid-Fire Questions Latka runs through standard rapid-fire questions covering favorite cryptography books, CEOs, and personal routine, with Peterson providing direct and concise answers.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 65% · guest 35%0:00 · Nathan 65% · guest 35%3:00 · Nathan 14.2% · guest 85.8%3:00 · Nathan 14.2% · guest 85.8%6:00 · Nathan 35.2% · guest 64.8%6:00 · Nathan 35.2% · guest 64.8%9:00 · Nathan 13.5% · guest 86.5%9:00 · Nathan 13.5% · guest 86.5%12:00 · Nathan 26.8% · guest 73.2%12:00 · Nathan 26.8% · guest 73.2%15:00 · Nathan 31.6% · guest 68.4%15:00 · Nathan 31.6% · guest 68.4%18:00 · Nathan 86% · guest 14%18:00 · Nathan 86% · guest 14%21:00 · Nathan 75.4% · guest 24.6%21:00 · Nathan 75.4% · guest 24.6%
Sharpest disagreement ▶ 16:51 Pushing back against ICO categorization

Peterson immediately rejects Latka's characterization of their fundraising as an ICO, emphasizing that REP tokens represent a reporting stake rather than profit-sharing equity.

 Hardest push from Nathan ▶ 13:42 Demanding guest skip development disclaimers

Latka abruptly interrupts Peterson's technical caveats about beta versions and firmly directs him to tell the story as if the product were completely finished.

 Biggest teaching moment ▶ 9:30 Educating host on market share payout logic

Peterson corrects Latka's confused framing of pricing, methodically explaining how 30-cent share prices reflect a 30% implied win probability that settles to 1 ether on victory or 0 on defeat.

 Nathan holds their own ▶ 2:46 Citing Ethereum co-founder interview

Latka establishes his own industry knowledge by citing his recent interview with Ethereum co-founder Anthony Di Iorio to contextualize the underlying blockchain architecture for the audience.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Jack Peterson and Augur's Ethereum Architecture 4301 Latka introduces Augur's connection to Ethereum and demonstrates domain awareness by referencing his prior interview with Ethereum co-founder Anthony Di Iorio. Peterson collaboratively explains the concept of smart contracts acting like a decentralized database.
Understanding Prediction Markets and Event Creation 2423 When Latka asks Peterson to pitch the audience, Peterson corrects him by noting the platform is not yet live. Latka pushes him to describe hypothetical live usage and openly admits that he and his listeners are lost regarding the mechanics of prediction markets.
Mechanics of Market Liquidity, Shares, and Payouts 2613 Latka struggles to grasp how bets and shares work, repeatedly asking basic questions about order books and pricing. Peterson patiently educates him on how share prices reflect implied probability and resolve to either one dollar/ether or zero upon event completion.
User Onboarding and Bridging Fiat to Cryptocurrencies 2624 Latka presses on how fiat connects to crypto betting, demanding Peterson speak as if the product were already fully built. Peterson clarifies that Augur does not custody fiat or act as a money transmitter, walking Latka through third-party fiat onramps and peer-to-peer liquidity matching.
Fundraising Details and REP Token Governance 3433 Peterson rejects Latka's 'ICO' terminology, explaining that the REP token functions as a reporting and market-resolution mechanism rather than equity or profit-sharing. Latka probes into the $5.3M raise and how crypto was converted to cover fiat payroll.
The Famous Five Rapid-Fire Questions 1100 Latka runs through standard rapid-fire questions covering favorite cryptography books, CEOs, and personal routine, with Peterson providing direct and concise answers.

Statements from this episode (6)

Assertion Supported
Peterson: Augur operates as a peer-to-peer prediction market without centralized house
“The people in the market set the price. So you're actually, you're not trading like with Augur. You're trading with other participants in the market. Normally the person who initially creates the market will set up an order book, right? So they'll have initial…”
Jack Peterson Aug 27, 2017 ▶ 8:17
Assertion Supported
Peterson: Augur does not handle money transmission or fiat conversion
“We don't, we're not actually involved in converting US dollars to anything else. We're, we don't get involved with money transmission or anything like that. We don't distribute ether either.”
Jack Peterson Aug 27, 2017 ▶ 12:00
Disclosure
Peterson: Augur will embed ShapeShift and Coinbase plugins for onboarding
“Augur will have little plugins like that. There'll be one for shapeshifts and one for Coinbase.”
Jack Peterson Aug 27, 2017 ▶ 14:04
Assertion Supported
Peterson: REP tokens confer market resolution rights, not profit sharing
“Basically, there, it's, you, Pete, if you have REP, you have a stake in the system, not in the sense of having a stake in the profits from the system, but in helping to resolve markets on the system after you know, the market's complete.”
Jack Peterson Aug 27, 2017 ▶ 17:11
Disclosure
Peterson: Augur pays team in US dollars converted from crypto
“So we actually for the most part, our payroll is just in, in US dollars. ... But the well, we, so we raised money in cryptocurrency and have, you know, converted some of it to US dollars for payroll.”
Jack Peterson Aug 27, 2017 ▶ 17:38
Disclosure
Peterson: Augur raised $5.3M in crypto in August-September 2015
“We raised 5.3 million dollars. In August and September of 2015. ... It was 5.3 million in crypto. 5.3 million dollars equivalent in crypto.”
Jack Peterson Aug 27, 2017 ▶ 17:57
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