Numerai first encrypts its trading data and then shares the encrypted data with data scientists -- so that the scientists have no chance to copy the fund's trading strategy. However, the company will carefully design the encrypted data, so that scientists can model based on the data, and thus obtain more benefits in the transaction. Numerai began issuing a total of one million Numeraire tokens to 12,000 scientists starting February 21. The higher the scientist's points, the more tokens he can get.

Numerai cannot be used as a currency to buy goods in the market, it is only used to motivate scientists to build successful machine learning models, and then make profits through transactions in the real market. If the scientists make a profit from the transaction, they get Numeraire tokens and win a Bitcoin "bonus"; if the transaction is a loss, they don't receive a "salary" and the company "destroys" their Numeraire Token.

Project Highlights

Numerai has paid out over $200,000 to our users. We use Bitcoin for these payments. The problem with Bitcoin is that it exists on a different blockchain than the Numeraire token. This greatly limits how automated and unstoppable Numerai-based decentralized applications can be, as these applications cannot accept bitcoin payments, they can only receive and spend ethereum.

The staking mechanism creates a powerful new dynamic based on Numerai's best machine learning models. For thousands of people, Numeraire will be the first time in their lives to interact with an Ethereum smart contract. They can do it all from Numerai's website without having to manage keys or use an Ethereum client. This is not speculative; you can invest in Numeraire right now, and the Ethereum deal will affect the course of the Numerai hedge fund.

Application scenario

Every user on Numerai has the opportunity to stake NMR tokens on their predictions to express their confidence in the model. If their predictions are good, they make money and their NMR returns. If their predictions are poor, their NMRs will be destroyed.
 
对用户来说，最重要的使用指标是NMR的最大收获者是否也是最大的持有者，即鲸鱼是用户。 That's exactly what's happening with Numerai.
 
如果你进入Numerai的排行榜，并根据NMR的职业收入排序，你可以看到，排名前15的NMR收获人员中，有7人当前持有NMR。 As a result, nearly half of the participants with the largest amount of NMR are accumulating on a weekly basis. I don't know of a single cryptocurrency project where a token is so widely and frequently used by its largest holders.

The Numeraire Effect

The reason why Numerai asks data scientists to bet NMR on their models is because only good models will benefit and accumulate. This is also happening.
 
当Numerai用户提交预测时，他们还会对测试集提交预测。 Users don't get feedback on their performance on this test set, and they don't even know what our data represents; this ensures that the test results on this test set are rigorous.