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Numerai Announces $1M Strategic Buyback of NMR
In a significant move to reinforce its commitment to participants and maintain economic stability, Numerai has announced a strategic buyback of one million dollars’ worth of Numeraire (NMR) tokens from the open market. This decision is a direct reflection of the company’s long-term focus on fostering a robust staking ecosystem that aligns thousands of data scientists globally with its hedge fund’s performance.
Numerai’s impressive growth in assets under management (AUM) has been nothing short of remarkable, more than doubling to over $441 million from approximately $173 million within the past year. The company now trades over $1 billion per month across over 30 global markets, leveraging machine learning models crowdsourced from a vast network of data scientists who stake NMR on their predictions.
To incentivize high-quality contributions and encourage aligned participation in its decentralized hedge fund, Numerai’s Stake-Weighted Meta Model has been consistently outperforming individual models. The CEO, Richard Craib, emphasized the significance of this achievement: “The success of our Stake-Weighted Meta Model speaks for itself; it’s outperformed every individual model over the past year. As our AUM grows and top institutional allocators join us, the role of NMR has never been more critical.”
However, as Numerai’s ecosystem continues to mature, the scarcity of NMR has become a pressing issue. The company maintains a fixed supply capped at 11 million, with roughly 3 million remaining in its treasury. This constrains its capacity to distribute staking rewards at historical levels.
To address this challenge and reaffirm its commitment to stakeholders, Numerai will execute the buyback gradually to ensure transparency. Orders will be placed near prevailing bid prices, allowing the program to unfold over a period of time.
The full explanation behind the buyback can be found on Numerai’s newly launched blog.
About the Company
Founded in 2015, Numerai is a San Francisco-based hedge fund that crowdsources stock market predictions to solve the hardest problem in finance. The fund operates by harnessing the power of thousands of data scientists worldwide who can stake NMR on their models and contribute to a collective Meta Model employed in live trading.
Source: crypto-economy.com
