Numeraire
Crypto Overview
Purpose and Utility
Numeraire (NMR) is the native token of Numerai, a decentralized hedge fund that uses artificial intelligence to make investment decisions. The token serves as a staking mechanism for data scientists who submit price predictions to the Numerai tournament platform. Data scientists stake NMR tokens when submitting their predictions, earning rewards for accurate predictions while losing their stake for poor performance.
Business Model Analysis
The platform's business model revolves around crowdsourcing market predictions from data scientists worldwide. The staking mechanism ensures participants have skin in the game, promoting honest and quality submissions. This model aligns with Islamic principles as it involves real work, skill application, and value creation through legitimate market analysis.
Real-World Adoption
Numerai reports consistent participation from thousands of data scientists who stake NMR tokens and submit predictions. The platform manages significant assets and has demonstrated sustained ecosystem activity since its launch in 2015.
Token Distribution and Development
The initial token distribution allocated tokens to early participants and the founding team with standard vesting periods. The project maintains active development, with regular updates to the tournament platform and underlying infrastructure. The development team remains engaged and transparent about platform changes and improvements.
Additional Considerations
The core utility of NMR revolves around staking for tournament participation, which functions as a performance bond rather than interest-bearing activity. The platform doesn't facilitate lending, gambling, or other prohibited activities. All predictions and stakes are tied to real market analysis and tangible value creation through the hedge fund's operations.
Crypto Impact
To assign a comfort level investing in Numeraire from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Numeraire.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.