This week's Daily Mover is Numeraire (NMR). Numeraire is a network of data scientists that are incentivised to forecast models to improve hedge fund returns, and the token facilitates the reward structure that correct predictions receive.
Numeraire launched in 2015 as a hedge fund that uses crowd-sourced data science techniques to fuel their investment strategy. The team created the Numeraire (NMR) token in July 2017, for data scientists to stake and compete in Numerai’s monthly tournaments.
NMR was launched as an ERC-20 token and distributed via airdrop. In 2018, its maximum supply was cut in half to promote decentralization. Last year the team sold $11 million in tokens in a round led by Paradigm and Placeholder.
NMR FCAS climbed 71-points (10.22%) in the past two weeks, due to a 76-point (10.8%) spike in Developer Behavior and a 75-point (10.72%) climb in User Activity. Market Maturity also increased 46-points (6.53%).
On March 10th, the Numerai team launched Erasure Bay, a marketplace for trustworthy information. Users can either buy information or get paid for providing it. The key difference with a normal trade is that money is only exchanged if the information matches what the buyer wanted. The seller can even lose money for sharing spam or bad information.
The spike in user activity we’re witnessing suggests that there is both demand and supply for this type of marketplace. Not only does it provide access to data and information that would otherwise be hard to find, but the new incentive mechanism also enforces trust without reputation. This opens the door for lesser known sources to share knowledge.
Staking has worked as a quality mechanism for Numerai in the past, as part of their data science tournament. In creating Erasure Bay, Numerai is building a generalized version of that mechanism to apply beyond stock market predictions.
