The East Germans would have issued the Luger to the Volkspolizei (VoPo) with two mags numbered 1 & 2. Some were rebarreled while others, like my 1917 Erfurt, will retain the original barrel if the bore is good enough.
The Crown/N is a commercial proof used on early commercial Lugers and used by the East Germans. It had previously been dropped by pre-WW2 Germany. Maybe they had old stamps already available or wanted to differentiate themselves from West Germany.
Note in Mike's post that his commercial Luger has strawed parts that are blued on yours. The East Germans refinished yours as they did to many others they refurbished.
The good news is that, as already stated, the VoPo Lugers are going up in value and you didn't overpay at all. They are one of the more recent chapters in the saga of the Luger and while some may not consider them "original", they have their own history and appeal. In time they will appeal to collectors more and more.
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