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Numerai, a renowned San Francisco-based decentralized hedge fund powered by crowdsourced machine learning, has announced that it plans to buy back $1 million of its token, Numeraire (NMR), according to an official announcement today.
While the move aims to boost the token’s growth, the firm has announced that it will make the buyback from the open market.
Notably, the move marks part of Numerai’s continued investment in its staking ecosystem. This mechanism aligns thousands of global data scientists with the long-term performance of its hedge fund.
Following its commitment to advancing its ecosystem, Numerai has more than doubled its assets under management (AUM), growing from approximately $173 million to over $441 million in the years since.
 
However, as Numerai’s ecosystem continues to mature, NMR has become scarce. With a fixed supply capped at 11 million and roughly 3 million NMR remaining in Numerai’s treasury, the company has limited capacity to continue distributing staking rewards at historical levels. The company says the buyback will help underscore its long-term commitment to its participants and maintain economic stability.
While it has continued to grow impressively, the fund now trades more than $1 billion per month across over 30 global markets, relying on machine learning models crowdsourced from a global network of data scientists who stake NMR on their predictions.
According to the announcement, thousands of data scientists have been submitting predictions to Numerai’s tournament and staking NMR on the performance of their models.
Notably, the stakes encourage aligned, high-quality contributions to the hedge fund, and it’s working. Numerai’s Stake-Weighted Meta Model, an ensemble of user models weighted by their NMR stakes, has consistently outperformed individual models, reinforcing Numerai’s incentive-aligned approach to collective intelligence.
Richard Craib, the Founder and CEO of Numerai, commented on the development, saying;
“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.”
Nonetheless, the announcement further reveals that the buyback will be executed gradually to ensure transparency and accountability. Orders will be placed at or near prevailing bid prices, allowing the program to unfold gradually over time.
Source: https://zycrypto.com/numerai-plans-1m-strategic-buyback-of-its-nmr-token-from-open-market/