Numeraire (NMR) is a decentralized platform built on blockchain technology with a mission to transform the realm of predictive modeling and quantitative finance. Developed by Numerai, a company renowned for its expertise in crowdsourcing artificial intelligence (AI) algorithms for stock market predictions.
What is Numeraire?
Numeraire is a multifunctional token that serves as the medium of exchange, staking mechanism, and governance token within the Numerai ecosystem. It provides participants with various avenues for involvement and potential rewards.
Numeraire incentivizes data scientists to contribute their models and actively participate in the platform. The platform encrypts predictions based on historical market data, ensuring privacy and intellectual property protection. Through a tournament-style competition, the most successful algorithms are chosen and combined into an ensemble model for making real-world trading decisions.
The Numeraire team
The Numeraire project was initiated by Richard Craib, a seasoned hedge fund quantitative trader, and mathematician. To bring the project to life, he assembled a team of experts from diverse domains, encompassing machine learning, cryptography, and finance. This collaborative team harnesses its collective expertise to drive innovation in quantitative finance, ensuring that Numeraire remains at the forefront of advancements in the industry.
How does Numeraire work?
Numeraire implements a distinctive methodology to generate robust predictive models. Data scientists globally can submit their machine-learning algorithms to the platform. However, instead of sharing their raw data, they transmit encrypted predictions derived from the historical market data supplied by Numerai.
This encryption safeguards the privacy and intellectual property of the participants. The platform employs a "tournament style competition" approach to assess the submitted models. It identifies and aggregates the most effective algorithms into an ensemble model, subsequently informing real-world trading decisions. Data scientists whose predictions contribute positively to the ensemble model are rewarded with NMR tokens.
Numeraire native token — NMR
NMR is an ERC-20 token that operates on the Ethereum blockchain, serving various functions within the Numerai ecosystem. It acts as a medium of exchange, facilitating transactions within the platform, and also serves as a staking mechanism to incentivize data scientists and promote their active involvement. Additionally, NMR functions as a governance token, granting token holders the ability to participate in decision-making processes and have a voice in shaping the platform's future direction.
NMR tokenomics
The total supply of NMR tokens is set at 11 million, with a distribution strategy that aligns the participants' incentives and fosters the platform's long-term sustainability. Numeraire employs periodic auctions to introduce new NMR tokens, utilizing the proceeds to support platform development and incentivize active participation from users.
NMR token use cases
In addition to its role in the prediction modeling ecosystem, NMR has several other use cases. NMR token holders can participate in governance by voting on platform upgrades, model selection, and other significant decisions. NMR can also be traded on various cryptocurrency exchanges, enabling users to buy, sell, and trade the token for speculative purposes.
NMR token distribution
Numeraire has a maximum token supply of 11 million. Among these tokens, 1 million NMR tokens are allocated to data scientists based on their performance on the Numeraire leaderboard.
After the initial distribution, a fixed number of NMR tokens will be generated weekly until the maximum supply is reached. Outstanding data scientists who excel in the machine learning competition on Numeraire will receive NMR tokens as ongoing rewards. This distribution mechanism ensures a sustained incentive structure for participants and contributes to a thriving ecosystem within the Numeraire platform.
Revolutionizing predictive modeling and quantitative finance
Numeraire is a groundbreaking platform that leverages the power of AI and blockchain technology to revolutionize predictive modeling in the financial industry.
By establishing a decentralized network of data scientists and incentivizing their contributions with NMR tokens, Numeraire has created a unique ecosystem that consistently enhances its predictive models.
As the platform expands and attracts more participants, Numeraire has the potential to reshape the landscape of quantitative finance, opening up new opportunities for innovation and collaboration.