What Is Numeraire?

Numeraire is a cryptocurrency developed by the hedge fund Numerai to empower researchers in predicting stock market trends. Numerai integrates data science, artificial intelligence, machine learning, and cryptography to build high-performance machine learning models while maintaining data privacy.

How Numeraire Works

Numeraire leverages crowdsourced intelligence and data analytics to help Numerai make trading decisions by forecasting stock market movements. The platform features two user models: the Numerai Tournament and Numerai Signals. Users design machine learning models using provided datasets and stake NMR tokens. Model performance determines the rewards they receive.

NMR Utility

NMR is an ERC-20 token operating on the Ethereum blockchain, powering the Numerai ecosystem. It facilitates staking and burning throughout Numerai tournaments and signals. NMR also serves as the native token for the Erasure protocol and is used on the Erasure Bay information marketplace.

Founders and History of Numeraire

Numerai was founded in 2015 by Richard Craib in San Francisco. The project secured over $26.5 million across five funding rounds between 2016 and 2021. The NMR token was launched on the Ethereum mainnet in 2017, without an initial coin offering (ICO).

Numeraire Tokenomics

Originally capped at 21 million, the total supply of NMR was reduced to 11 million in July 2019. As a deflationary asset, NMR tokens are burned weekly via the Numerai tournament. Lowering the maximum supply is intended to support long-term value and price appreciation for NMR.

How to Earn NMR

Participants earn NMR by developing machine learning models that deliver robust trading strategies and accurate predictions. Models are evaluated and rewarded in NMR tokens according to their performance. If predictions fail, staked NMR is burned.

Numeraire Competition

Key competitors of Numeraire include QuantConnect, Quantiacs, and WorldQuant. Unlike its peers, the Numeraire ecosystem is built on smart contracts, ensuring a trustless environment. Its staking mechanism further incentivizes participants to create effective models.

Numeraire SWOT Analysis

Strengths: Integration of AI and blockchain, unique Erasure protocol, thoughtfully designed incentive mechanism.
Weaknesses: Complexity of machine learning algorithms, rising competition.
Opportunities: Potential to revolutionize financial sectors, especially DeFi.
Threats: Risks related to the griefing mechanism within the Erasure protocol.

Numeraire Roadmap

Numerai launched Erasure in 2019 and reduced the total NMR supply to 11 million. Numerai’s strategic vision is to build the world’s final hedge fund by consolidating intelligence, data, and capital—then decentralizing that monopoly.

Numeraire News

Recently, Numeraire has remained a top AI and Big Data token by market capitalization. Numerai has upgraded its staking system for Real Contribution within Numerai Signals, enabling more precise measurement of genuine user contributions.

Where to Buy NMR?

NMR is listed on several leading cryptocurrency exchanges. Users can typically purchase NMR with trading pairs such as NMR/USDT on these platforms.

Conclusion

Numeraire offers an innovative approach to stock market prediction by merging AI and blockchain technology. Despite its unique challenges, it holds significant promise for transforming the financial industry. With its advanced staking mechanism and decentralized design, Numeraire continues to develop and gain traction in both the cryptocurrency and quantitative finance sectors.

FAQ

What Is Numeraire?

Numeraire (NMR) is a blockchain-based token for a decentralized hedge fund that applies AI to forecast stock markets. It incentivizes staking on predictions to boost overall accuracy. NMR runs on the Ethereum blockchain.