Numeraire
Crypto Overview
Overview and Intended Utility
Numeraire (NMR) is the native token of Numerai, a decentralized hedge fund and prediction market platform founded in 2015. The token serves as both a staking mechanism and incentive system for data scientists who contribute to the platform's machine learning models for stock market predictions.
Business Model and Actual Usage
Data scientists stake NMR tokens to submit predictions to Numerai's tournament. If their predictions are accurate, they earn additional NMR tokens as rewards. If predictions are poor, they lose their staked tokens. This creates a merit-based system where participants have skin in the game.
The platform demonstrates significant real-world adoption with thousands of active data scientists participating in weekly tournaments. On-chain data shows consistent staking activity and tournament participation, indicating the token is being used as intended.
Token Distribution and Founder Alignment
Initial token distribution was fairly conducted through airdrops to early Numerai tournament participants. The project maintains transparency about token economics with clear documentation. Founders and team members have reasonable token allocations with appropriate vesting schedules.
Development Activity
The project shows strong technical development with regular updates to the platform. The team consistently delivers on roadmap items and maintains active GitHub repositories. The focus is primarily on improving the prediction tournament infrastructure rather than token marketing.
Revenue Model Analysis
The platform's revenue model is based on the performance of predictions in real-world financial markets. The staking mechanism serves as a quality control system rather than a lending or interest-bearing product. There is no riba involved in the core protocol design.
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.