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Anyone wondered where & how NMR is used ⁉️🧐 We have.

TLDR; NMR is the staking token of the Erasure protocol, with a set amount of 11 million NMR. These will gradually decrease as NMRs are burned.

Thread 👇

1/x
First some history 👀

NMR was initially used in Numerai, the hedge fund.

NMR was later extended to be the native token of Erasure protocol. A protocol for building global data marketplaces.

2/x
Erasure allows anyone to publish data & stake capital behind the accuracy of information.

Users can build a verifiable track record and stake their predictions with NMR. By staking NMR, the seller of a prediction puts value at risk if the prediction goes wrong.

3/x
When a seller stakes behind their prediction they choose a “griefing factor”.

Griefing factor = degree (e.g. 1:10) to which the buyer is able to destroy their stake.

If the seller stakes 100 NMR, the buyer can destroy both their stakes for 10 NMR.

4/x
There are currently 3 applications built on top of the Erasure Protocol:
1. Numerai hedge fund (@numerai).
2. Erasure Quant.
3. Erasure Bay (@ErasureBay).

5/x
1. Numerai hedge fund.

Numerai crowdsources its intelligence from a global pool of data scientists.

The ML models are ranked based on historical data & used for investment decisions. Participants stake their models, and get rewarded (or slashed) with NMR.

6/x
2. Erasure Quant.

A marketplace for stock market data (a stock-picking tournament).

All predictions are staked (in NMR) --> burned if not accurate. Rewards are paid proportional to the stake (in NMR).

7/x
3. Erasure Bay.

A marketplace for sourcing ANY kind of information (secrets, predictions etc).

Requests for info are matched with a stake by “fulfillers” who get paid if the information meets the set parameters. DAI used for staking & NMR burnt in the background.

8/x
What about ⚖️governance ⚖️?

Governance of the NMR token (=Erasure protocol) is still with the core team. There currently isn't a defined roadmap for the protocol to become community-owned.

Though, @richardcraib hinted at this in December 2018: medium.com/numerai/redesi…

9/x
Token economics: NMR is needed for staking and getting paid rewards.

NMR is valued based on staking demand (projects using Erasure protocol) and a decreasing supply of NMR due to burn-mechanism (~3% of staked tokens are burnt). No minting.

10/x
A problem we ran into is how dispersed information & terminology is in the Erasure ecosystem (due to Numerai).

Simple suggestion:

Change the name of Numerai token to Erasure token (similar what to @AaveAave did) to reflect the protocol & not one application.

11/11
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