product review: @numerai , an ambitious attempt at being "the worlds last hedge fund" because of its similarity to @deep_funding , this one has been on my review list for quite some time Overview at its core, numerai is a continous ML challenge where models compete to accurately predict a score of 0-1 of various stocks (or crypto), with 0.5 indicating average return and 1 outstanding performance every 20 days the market resolves & we know each models predictive abilities against another whats especially cool is that you can simply submit a model & the numerai team triggers it every 20 days to get the new predictions from it. in fact, their community even created a marketplace for people to buy and sell models! Tokenomics In their whitepaper they present their token as a solution to the overfitting problem in machine learning, where models overindex on past historical data used in training or testing and perform badly when presented with new data Their solution to this issue is letting $NMR be staked to express confidence in a models live performance on new data, such that its stake increases or gets burnt depending on accuracy of predictions I'm personally a little dubious about this rationale since people who can stake on their model aren't necessarily those with the most confidence so much as simply those with more liquid capital what i did like is they provided a compelling reason for why they can't simply use stablecoins: a burn function only works with your own token Revenue Numerai combines the predictions of all models into a stake weighted meta model, which serves 2 purposes; 1. Grading the community ML models, ie what % of your model does the meta model comprise of? 2. The meta model trades as a hedge fund. if successful in earning money, possibly coming close to solving the "worlds hardest data science challenge" and becoming the "last hedge fund" I haven't got the numbers on the actual performance of the meta model in the stock or crypto market, but this is where the rubber hits the road for them fail or succeed, i love the ambition behind numerai 🫡