• Ticker: NMR
• Network: Ethereum
• Category: Utility, Staking

About NMR

Numeraire (NMR) is an ERC-20 token on the Ethereum blockchain. It is the incentive layer for Numerai, an ecosystem that uses crowd-sourced artificial intelligence to improve investment decisions for both stocks and crypto. Numerai provides financial data to data scientists around the world, who build machine learning models to predict asset returns and submit their predictions back to the platform. NMR is directly tied to Numerai’s staking mechanism: participants must stake NMR on their models to signal confidence, earning rewards for accurate predictions or losing part of their stake for poor performance.

Key points

• Staking for Confidence: Data scientists lock up NMR on their models' performance. This "skin in the game" principle ensures that contributors are incentivized to submit high-quality, unique models.
• Rewards & Penalties: Models with accurate predictions are rewarded with additional NMR. Models that perform poorly lose their staked NMR, which is then burned (permanently destroyed), creating deflationary pressure.
• Meta Model: Numerai combines the thousands of staked predictions into a single Meta Model that the hedge fund uses for trading.
• No ICO: The initial distribution was made freely to active participants and contributors, fostering a community-centric ecosystem from the start.

FAQs

• What is NMR used for?

NMR is primarily used for staking in the weekly prediction tournaments. It serves as a guarantee of your model's quality, aligning your financial interests with the fund's performance. Additionally, MASK can also be used for staking to earn rewards and may grant access to premium features within the ecosystem.

• How does NMR work?

NMR works through smart contracts on Ethereum. A smart contract manages the staking pool, distributing rewards to successful models and burning the stakes of failed models. This trustless incentive mechanism ensures the continuous improvement of the collective AI intelligence that drives the hedge fund.

• How can I buy NMR on Bitso?

1. Log in to your Bitso account or sign up if you don’t have one.
2. Go to “Buy/Sell” and select NMR as the token you want to purchase.
3. Choose any available fiat currency (MXN, ARS, BRL, COP, or USD) as your base.
4. Enter the amount, review the details, and confirm your transaction.

You can track the token’s performance directly in the app.

Tokenomics

The NMR tokenomics are designed to create a scarce and incentivized utility asset, fostering a long-term, high-quality ecosystem. The maximum supply is capped at 11 million tokens (reduced from 21 million in 2019). The unique token burn mechanism reduces the circulating supply every week when models perform poorly, creating deflationary pressure and supporting the token's value over time.

Example use case

Imagine you are a data scientist who believes your new machine learning model can outperform the market. You stake 100 NMR on your weekly prediction. If your model proves accurate and unique, you receive your 100 NMR stake back plus a reward in additional NMR. If your model fails, a portion of your 100 NMR is permanently burned, making low-quality predictions financially costly.

Disclaimer

This Help Center article is for informational purposes only and does not constitute investment advice. Please conduct your own research (DYOR) and assess your risk tolerance before trading. As always, invest responsibly and stay informed.