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Decentralized hedge fund platform Numerai has announced plans to buyback $1 million of its native token, Numeraire (NMR). This move is intended to support the company’s growing staking ecosystem and encourage long-term alignment with participants.
Numerai to Repurchase $1 Million of NMR: AUM Exceeds $440 Million
Numerai announced that it will gradually implement the buyback, using bids close to market prices. This strategy aims to ensure transparency and avoid negative market impact. At current prices, this amount corresponds to approximately 110,000 NMR tokens.
Numerai's buyback decision comes in line with the platform's significant increase in assets under management (AUM) over the past year. AUM has surpassed $441 million this year, up from $173 million in 2023. The company stated that it processes over $1 billion in trading volume each month across more than 30 global markets.
Numerai's success is driven by its contest-based model, where users submit weekly predictions and stake NMR on their predictions. This data is aggregated into a system called the Stake-Weighted Meta Model. The company claims that this metamodel outperforms individual models combined.
“The success of our Stake-Weighted Meta Model speaks for itself: it has outperformed all individual models over the past year,” said CEO Richard Craib, emphasizing that with growing AUM, the role of the NMR token has become even more critical.
Numerai stated that only 3 million of the NMR token, whose total supply is capped at 11 million, currently remain in the company's treasury. This scarcity and increased staking participation have raised questions about the sustainability of reward distribution.
The company emphasized that the buyback is a demonstration of commitment to the ecosystem and aims to ensure economic balance.
Numerai raised $11 million in an investment round led by Placeholder and Paradigm in 2019. The platform is among the prominent projects in the Web3 world with its unique structure that combines traditional finance and artificial intelligence.
*This is not investment advice.