Numerai
by Numerai Inc.
Quick Fact
Numerai is the first hedge fund to utilize a blockchain-based token, Numeraire (NMR), to incentivize data scientists globally for building predictive models that inform its trading strategies.
Numerai is a San Francisco-based hedge fund that uniquely combines artificial intelligence, blockchain technology, and crowdsourced data science. By distributing encrypted financial datasets, Numerai invites data scientists worldwide to develop machine learning models that predict stock market movements. These models are aggregated into a meta-model, which guides the fund's trading decisions.
Crowdsourced AI for Financial Modeling
Through weekly tournaments, data scientists submit their predictive models and stake Numeraire (NMR) tokens on their performance. Successful models earn rewards, while underperforming ones result in the loss of staked tokens. This staking mechanism ensures high-quality contributions and aligns incentives between the data scientists and the hedge fund's performance.
Decentralized Incentivization via NMR
Numeraire (NMR) is an ERC-20 token that is the backbone of Numerai's incentive structure. Beyond staking, NMR holders participate in governance decisions, influencing protocol upgrades and platform improvements. This decentralized approach fosters a collaborative ecosystem where contributors are directly invested in the platform's success.