Numerai, a decentralized hedge fund, has unveiled a $1 million strategic buyback of its native token, Numeraire (NMR), as part of its continued investment to grow its staking ecosystem.
Last year, the fund had an excellent growth run and increased its assets under management (AUM) significantly, by just under $173 million to more than $441 million. Exchange has also proliferated, where Numerai presently makes a billion dollars a month trade in over 30 markets around the world.
A fundamental element of the Numerai investment strategy is its bi-weekly data science competition. During this, thousands of players predict and invest NMR to demonstrate confidence in their predictions. The fund uses this system to drive its Stake-Weighted Meta Model, which is an accumulation of staked models making performance better than any single model in the last year.
As NMR can only increase its supply by 11 million, and the number of tokens left in the company treasury is around 3 million, the buyback highlights the willingness of Numerai to consolidate the value of its tokens. It also guarantees long-lasting economic alignment of their ecosystem.
This is to be done over time with open market repurchases of the outstanding balance of balance sheet repair filling at close to the current bid level to avoid destabilisation of the market.
Numerai clarified that this action not only shows its faith in the platform’s future, but also guarantees sustainability regarding token-based incentives of staking to its global contributor base.
Also Read : Solana DEX Raydium’s RAY Token Buybacks Cross $190 Million
