Numerai is a hedge fund that uses crowdsourced predictions from data scientists to guide its investment strategies. It operates with a unique model where participants build machine learning models to predict stock market outcomes.Users can stake Numerai’s native cryptocurrency, Numeraire (NMR), on their predictions. By doing so, they align their incentives with the performance of their models. If their predictions are accurate, they earn rewards in NMR; if not, they risk losing their staked tokens.The platform encourages innovation and collaboration by allowing data scientists from various backgrounds to contribute their expertise. This decentralized approach aims to improve forecasting accuracy and ultimately boost the fund’s performance.Numerai further enhances its model by periodically releasing encrypted datasets, making it challenging to determine stock price movements while preventing insider trading. Overall, Numerai stands out for its community-oriented structure and unique integration of machine learning with finance.