Pitch:
- NMR needs more alignment with the tournament(s).
- Numerai wins if NMR wins.
- Tokenomics and utility are a building block for a community led initiative to thrive. Bittensor has been able to achieve this via their TAO token which has 40x the marketcap of NMR without having a clear PMF yet.
- Numerai has achieved a PMF with a clear trajectory to achieve greater heights. This isn’t reflected in the NMR token yet.
- For NMR to achieve the tag of a pristine AI token, concerted efforts are required from, both, the community as well as Numerai to make this push in the right direction.
- NMR needs to be front and center of the community with a clear value prop for high performers in the tournaments.
- NMR needs to be more Defi centric
- The liquidity on Dexes is thin.
- This disincentives large spot buys on chain.
- With the tournament staking shifting on-chain, NMR needs deeper liquidity to onboard more participants, as well as to support high value offramps of the token to Usdc / Eth.
- Numerai community has latched onto agents big time. For agents to make autonomous calls, in addition to building and submitting ML models, they would also decide when is the right time to buy / sell NMR in order to stake. Bringing NMR into the agent game will enable the agents to make a holistic call to maximise the dollar output of work. Agents are natively onchain and would use Dexes to access NMR liquidity.
- NMR perps are still nascent. They are a good tool for hedging price volatility for stakers, but are rarely used. Proliferation of NMR perps in the community can be a lever for participants to manage risk and reduce volatility.
- Participation incentives
- Numerai participation is slowly becoming a “whale’s” game. The staking mechanism is highly robust and the right way forward. However, the flip side should not go unnoticed.
- The barrier to entry in such a system is high. This leaves out highly talented people from joining / committing into the tournament.
- The participant base in the tournaments seems to have saturated in the past couple of years.
- There should be incentives for high performers (who may not have staking capital to commit yet). The positive reinforcement of payouts from staking will create a flywheel for such talented people to commit more time and resources into the tournament and even commit more staking capital of their own. The initial friction needs to greatly reduced.
- Well thought out incentives need to be created which enable higher stakes by high performers, which ultimately benefits the SWMM and feeds into Numerai’s topline.