Reputation Tokens

In this article we will talk about the Reputation token, where the following topics will be discussed: What are Reputation tokens, what are the characteristics and finally an example of a Reputation token.

Table of Contents

What are Reputation Tokens?

The Reputation token, also called a reward token, is a token that is used within the ecosystem of a blockchain project. The amount of Reputation tokens you own determines your ultimate status within the network. You can earn Reputation tokens by actively participating in the network.

By completing tasks you get a reward in the form of Reputation tokens. The more tokens you have, the higher your reputation will be within the network.

Characteristics of reputation tokens

As a maker of a Reputation token, you do not have to comply with the laws and regulations that apply to security tokens and related items, just like with a utility token. These laws and regulations do not apply to reputation tokens, because they are not designed as investments by nature. In addition to not having to comply with various laws and regulations, reputation tokens have some other characteristics, namely the following:

  • Reputation tokens can be earned without having to invest.
  • Reputation tokens are marketed through an ICO.
  • Reputation tokens often have a close community as the rewards are heavily contributed.
Reputation tokens


Augur is a very well-known example when it comes to Reputation tokens (REP). Augur has built a platform with which they want to decentralize the gambling market. With Augurs REP token you can bet on sports matches, for example, with which more REP tokens can be earned.

The people who create events on the Augur platform have to pay for this with REP tokens as the underlying asset. In return, the creators of an event receive a portion of the fee in REP tokens for creating and maintaining the event.