Numeraire is the native token that powers Numerai, an Ethereum-based hedge fund platform that uses artificial intelligence and machine learning to develop advanced prediction models for the stock market.
Numerai is effectively a hedge fund that crowdsources stock market prediction models, or signals, to continually update and improve its core model, which Numerai calls its “Meta Model”.
Numerai primarily employs two methods to collect signals:
- Numerai Tournaments. To improve its prediction model, Numerai regularly hosts tournaments where participants can build and submit machine learning models, or signals, that effectively compete to better predict the stock market. Users can optionally stake NMR on their model to 1) earn additional NMR rewards for signals that perform well, or 2) burn a portion of their staked NMR for signals that underperform.
- Numerai Signals. In October 2020, Numerai introduced Numerai Signals, a system that allows data scientists, quantitative analysts, and financial experts from around the world to upload stock market signals and test their performance against other signals submitted to Numerai. In exchange, participants receive feedback to further improve their signals. They can also optionally stake NMR to earn staking rewards for signals that perform well relative to Numerai’s targets. Signals that underperform will result in a portion of the user’s staked funds being burned.
What is Numeraire (NMR)?
NMR is an ERC-20 token that can be staked to effectively “bet” on whether signals perform well or poorly, against both Numerai’s Meta Model and other user-submitted signals.
Numerai uses the Erasure protocol, a Ethereum-based smart contract that enforces the staking/burning mechanism, which incentivizes users to upload high-performing signals.
How to buy Numeraire (NMR) on Binance.US?
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