Convert NMR to TRY

Numeraire (NMR) is a unique utility token that powers Numerai, a global AI hedge fund that crowdsources machine learning models from data scientists worldwide.

Key takeaways

• Numeraire (NMR) is an ERC-20 utility token designed to incentivise participation in Numerai's AI-powered hedge fund tournament.
• Data scientists stake NMR on their predictive models; successful models earn more NMR, while poor performers have their stake destroyed.
• The token has a fixed maximum supply of 11,000,000 NMR, with a significant portion subject to a long-term, gradual burn mechanism.
• NMR's primary value is derived from its role in aligning incentives within the Numerai ecosystem, creating a powerful feedback loop between data science and finance.
• You can trade NMR spot and perpetual contracts on major platforms like BTCC.

What is Numeraire? Key Specifications & Tokenomics

Numeraire (NMR) is the native token of the Numerai network, a decentralised platform that connects data scientists with the capital of a hedge fund through a weekly machine learning tournament.

Who created Numeraire (NMR)?

Numeraire was created by Richard Craib, a South African-born entrepreneur and hedge fund manager. Craib founded Numerai in 2015 with the vision of building a more intelligent and decentralised hedge fund. The NMR token was launched in 2017 through an initial coin offering (ICO) to fund the project's development and create an economic system for the platform. The core idea was to use cryptocurrency to incentivise data scientists globally to contribute machine learning models without exposing the fund's proprietary financial data, which is provided to participants in an encrypted, abstracted format.

How does Numeraire (NMR) work?

Numeraire operates through a weekly tournament hosted on the Numerai platform. Here’s a breakdown of the process:

• Data Submission: Numerai provides encrypted, uniform financial datasets to participating data scientists. They use this data to build predictive machine learning models about stock market performance.
• Model Staking: Data scientists submit their model's predictions and must stake NMR tokens on their submission's potential success. This staking represents a financial commitment to the model's quality.
• Tournament & Evaluation: Numerai's hedge fund runs the submitted models with real capital. The performance of these models in live markets is tracked.
• Rewards & Burns: After the tournament round, rewards are distributed. Data scientists whose models perform well earn additional NMR from a reward pool. Crucially, models that perform poorly result in the NMR staked on them being permanently burned (sent to an irretrievable address), reducing the total supply.

This mechanism creates a powerful incentive for high-quality, honest model submission, aligning the interests of data scientists with the fund's performance.

What makes Numeraire (NMR) unique and valuable?

Numeraire's uniqueness stems from its direct application of crypto-economic incentives to the field of quantitative finance and artificial intelligence.

• Novel Staking-for-Integrity Model: Unlike typical staking for network security, NMR staking is a measure of a data scientist's confidence in their model. The burn mechanism for poor performance penalises spam and low-effort submissions, ensuring only serious contributions thrive.
• Bridge Between Crypto and Traditional Finance: NMR successfully creates a functional token economy within a multi-billion dollar hedge fund structure. It demonstrates a practical use case for blockchain technology in incentivising and coordinating complex, high-skilled work on a global scale.
• Deflationary Supply Dynamics: The burn mechanism from unsuccessful stakes applies constant sell-side pressure reduction. With a fixed max supply of 11 million, this ongoing burn can contribute to NMR's scarcity over the long term, assuming continued platform usage.
• Real-World Utility and Revenue: The token's value is backed by the actual performance and fees generated by the Numerai hedge fund. A portion of the fund's profits is used to buy NMR from the open market to fund the weekly tournament rewards, creating direct demand.

What is Numeraire (NMR) used for?

The NMR token has several core utilities within the Numerai ecosystem:

• Tournament Participation: The primary use is staking NMR to participate in the weekly data science tournament. It acts as an entry fee and a bond for model quality.
• Incentivisation & Rewards: High-performing data scientists are paid rewards in NMR, which can be held, sold, or re-staked in future tournaments.
• Governance: NMR holders can participate in the governance of the Numerai ecosystem, voting on key protocol upgrades and parameter changes through decentralised proposals.
• Access to Advanced Features: Holding or staking NMR may grant access to premium features, tools, or datasets on the Numerai platform as the ecosystem evolves.

How Is the Numeraire (NMR) Ecosystem Developing?

The Numerai ecosystem has evolved significantly since its inception. Initially focused solely on the weekly tournament (often called "Numerai Tournament" or "Classic"), the team launched Numerai Signals, a platform allowing anyone to submit individual stock predictions (signals) and stake NMR on them. More recently, the introduction of Numerai Erasure allows for the staking of NMR on any kind of data, broadening the protocol's scope beyond finance. The ecosystem continues to grow its community of data scientists (called "Meta Modelers") and integrate more deeply with decentralised finance (DeFi) protocols, exploring ways for NMR to be used in lending or as collateral.

How to mine Numeraire (NMR)?

NMR cannot be mined in the traditional Proof-of-Work sense. It is an ERC-20 utility token on the Ethereum blockchain. All NMR tokens were created at genesis. The only way to "earn" new NMR is by participating in the Numerai tournament as a data scientist and receiving rewards for top-performing models. Alternatively, NMR can be obtained by purchasing it on a cryptocurrency exchange like BTCC.

How to keep your NMR Coin safe?

As an ERC-20 token, NMR's security is tied to the security of your Ethereum private keys.

• Hardware Wallets: For long-term storage of significant amounts, use a hardware wallet like Ledger or Trezor. These devices store your private keys offline, providing the highest security against online threats.
• Software Wallets: For active use, such as preparing to stake on the Numerai platform, consider reputable non-custodial software wallets like MetaMask or Rainbow that support Ethereum and ERC-20 tokens. Always ensure you are visiting the official Numerai website when connecting your wallet.
• Exchange Custody: While convenient for trading, leaving NMR on an exchange means you do not control the private keys. It is suitable only for smaller, actively traded amounts. For larger holdings, withdraw to a private wallet you control.

How to buy NMR Coin?

NMR is a cryptocurrency listed on several exchanges. However, it is recommended to trade on a major platform like BTCC for higher liquidity and better customer support.

1. Register a BTCC Account: Sign up using your email or mobile number and complete the KYC verification to unlock more features and benefits of the platform.
2. Deposit Funds: Deposit fiat currency (via bank transfer, card, or third-party payment) or transfer USDT from an external wallet into your BTCC account. You can follow this guide.
3. Start Trading: Go to the trading page and search for the spot trading pair NMR/USDT or the perpetual contract NMR/USDT.
4. Place an Order: Enter the amount of NMR you wish to purchase and submit the order. For contract trading, you can also choose to go short (sell) and adjust the leverage multiplier according to your strategy and risk tolerance.
5. Confirm Your Purchase: For spot purchases, check your personal account to see if the coins have arrived. For contract trades, check the trading page to see if your order was filled successfully.