The price Numeraire today is 24.74 USD, and the trading volume in 24 hours - 8,679,548 USD. The crypto asset has grown by -9.01% over the day. Currently, the coin’s market capitalization is 145,652,659 USD, and has 5,888,504 coins in circulation with the max supply of 10,970,118 coins NMR.
What is Numeraire (NMR)?
Numeraire (NMR) is a cryptocurrency powered by Ethereum platform, and is a token of a San Francisco-based crowdsourced hedge fund run by artificial intelligence. From the beginning, Numeraire used a smart contract deployed in Ethereum to build a bridge between its users. The platform uses what is called “proof of intelligence” to reward and alert users.
In practice, this means that data professionals at the time of its launch were given free access to the chain based on their knowledge, but to increase its value they must make predictions based on their intelligence to get rewarded.
Token received more than $7.5 million in venture capital investments and the project claims to have initially paid out more than $200,000 to data scientists using Bitcoin.
Who created Numeraire (NMR)?
Numerai, founded in December 2015, is a blockchain-based hedge fund that uses artificial intelligence and crowdsourced stock market forecasts. The platform relies on a monthly “tournament” on machine learning and data science, where users, primarily data technicians, can send trading algorithms to stock exchange. Numerai then uses artificial intelligence algorithms to analyze predictions, and the best ones are included in Numerai's “metamodel”, which combines all the original data by which it will trade on the stock market.
What is the uniqueness of Numeraire?
The team believes that capital allocation associated with the stock market is inefficient, and that creating a free and open dataset for machine learning will help solve this problem.
Numerai argues that the inefficiency is partly due to the attribution of indicators to market data such as a share price or dividends. Each month, users are provided with an encrypted dataset from which the standard market data labels are removed. The project believes that by removing the context of the data, users will provide more accurate predictions. For example, a share price can be labeled as “characteristic 1", so users create stock forecasting models objectively based on historical data rather than personal preconceptions as to how price might affect a particular company.
In February 2017, the company announced its Numeraire token (NMR), an ERC20 token used to compete in tournaments on the platform. The platform uses a “skin in play” model where users must place NMR bets to receive tokens for their exact predictions. If the hedge fund as a whole performs well, it will distribute those revenues in NMR form to users.
How many NMR tokens are in circulation?
Numerai did not sell tokens, deciding instead to distribute one million NMR to a pool of 12,000 active users on the platform. Tokens were distributed relative to the success levels of prediction models submitted by individual users.
The total number of NMR was initially limited to 21 million, with a limit of 100,000 new tokens produced per week.
On 9 May 2018, Numerai announced that four million NMR had been released as it did not require a weekly addition. Of those four million, three million were locked up until 2028, putting them in the tournament with a permit date of 2028. The remaining one million NMR was earmarked for new issues and investor partnerships.
Through a network update on 26 June 2019, Numerai lowered the supply cap from 21 million to 11 million and released the remainder of NMR to bring the outstanding offer to 11 million.
Currently, tokens are burned every week in the Numerai tournament (bets with erroneous predictions lose their tokens). Therefore, the total outstanding offer will gradually decrease as tokens are burned on Erasure and in Numerai tournaments.
As of February 2021, 4,471,242 NMR tokens were in circulation.
How is Numerai network protected?
Numerai encrypts the dataset that is provided to tournament participants to prevent participants from copying the main trading strategy.
By handing out the dataset for free, the team believes it will ensure open user engagement around the world, promote a collaborative approach and create better models forecasting compared to conventional hedge funds.
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