Numeraire ( $NMR ) is a unique cryptocurrency associated with Numerai, a San Francisco-based hedge fund that leverages the power of artificial intelligence (AI) and machine learning for investment decisions. Launched in 2017, NMR is considered the first cryptocurrency created and released by a hedge fund.
What is NMR?
NMR is an ERC-20 token built on the Ethereum blockchain. ERC-20 tokens offer flexibility and are widely used in various decentralized applications (dApps). NMR plays a crucial role within the Numerai ecosystem, serving several purposes:
Incentivizing data scientists: Numerai frequently conducts tournaments where data scientists compete by submitting machine learning models that predict financial market outcomes. Top performers are rewarded with NMR tokens.
Staking: NMR holders can stake their tokens to participate in the Numerai protocol and earn rewards based on the performance of the collective intelligence gathered from the submitted models.
Governance: NMR token holders have voting rights on proposals that impact the Numerai platform's future development.
What makes NMR unique?
Several aspects distinguish NMR from other cryptocurrencies:
Hedge fund connection: Unlike most cryptocurrencies, NMR is directly tied to a real-world hedge fund, offering a potential link to traditional financial markets.
Focus on AI and machine learning: NMR is deeply rooted in the world of AI and machine learning, promoting innovation in these fields within the financial sector.
Stake-based rewards: The ability to stake NMR tokens and earn rewards based on the overall platform's performance adds another layer of utility to the token.
Tokenomics & Distribution
The maximum supply of NMR is 11,000,000 tokens reduced from an initial 21 Million. Numerai distributed 1 Million tokens to active platform users and 3 Million tokens are locked until 2028 and will be released as a reward incentive for tournament participants.
NMR tokens are burned weekly, as tournament participants who venture losing models and predictions lose their stake in the competition.
