The stock market is inefficient with respect to new developments in machine learning — only a fraction of the world's data scientists have access to its data. Numerai is changing this.Because Numerai abstracts its financial data, data scientists do not know what the data represents and human biases and overfitting are overcome.We are incentivizing the construction of an artificial intelligence hedge fund with Numeraire, a cryptographic token on the Ethereum blockchain.
Numerai (NMR) is the native token of Numerai, a hedge fund that runs its stock market predictions as an ongoing data science tournament. Thousands of anonymous data scientists worldwide submit machine learning models, and NMR is used to stake on those models' performance. Simply put, it's a crypto token that coordinates a crowdsourced AI-driven investment fund.
Numerai is not a payment network or a typical blockchain startup — it's an actual hedge fund built around a tournament where data scientists compete to build the best predictive models. NMR token ties the whole system together: participants stake it on their models to prove confidence in their predictions. Good predictions earn rewards in NMR, bad ones get burned, which keeps incentives aligned.
Numerai shares obfuscated stock market data with tournament participants, who train machine learning models and submit predictions. The fund then combines the best models into a meta-model that drives its trading strategy. NMR runs as an ERC-20 token on Ethereum, with its smart contract at 0x1776e1f26f98b1a5df9cd347953a26dd3cb46671.
NMR has a fixed hard cap of 11,000,000 coins, so no new tokens are minted beyond that limit. Uniquely, the token is deflationary by design: when a data scientist's model performs poorly, their staked NMR is burned and permanently removed from circulation. This creates a built-in mechanism that can reduce supply over time.
Since NMR is an ERC-20 token, it works with any Ethereum-compatible wallet like MetaMask, Ledger, or Trust Wallet. Its primary use is staking in the Numerai tournament via the official site numer.ai, where data scientists back their models with real skin in the game. It's also tradable on major cryptocurrency exchanges.