Numerai created one of the first utility tokens in 2017 called Numeraire (NMR) for its community of data scientists who use it to stake on their stock market predictions. But recently things changed when Numerai released the Erasure protocol, allowing totally new use cases for the NMR token.In just a few months since the launch of the protocol, Erasure has become bigger than Augur and Dharma combined. According to DeFi Pulse, over $2 million in NMR is staked on Erasure.“With the launch of Erasure, we were able to build new applications like Erasure Bay that use NMR in new ways,” said Richard Craib, founder of Numerai.Erasure Bay is a new dApp that lets users request information on anything; anyone can provide information but the catch is if you provide bad information you risk getting your stake burned. Since the March launch, Erasure Bay has been used to get pictures of lung scans of COVID-19 patients, a list of Jeffrey Epstein’s lawyers, and even used to crowdsource a valuation model for NMR itself.“Erasure Bay is demonstrating that you can trust other people online if they’re willing to put some cryptocurrency at stake and let you burn it if they misbehave. We did not expect all these weird use cases but we’re into it,” says Craib.”As the sheer amount of information online becomes unmanageable, we need new tools for filtering and assessing its quality… Erasure’s breakthrough is proving that staked data is better than un-staked data,” said Joel Monegro in Placeholder’s thesis on Erasure.“For the first time a service native to the internet enables counterparties to transact trustlessly and mutually benefit from recourse and track record, creating opportunities for disruption so large that it could power an eBay for information and replace the investment engine of top quantitative hedge funds”, says Alex Felix, Managing Partner at CoinFund. “Richard and the Numerai team have built an exceptional platform over the past few years and the latest initiative, the Erasure protocol, is already generating valuable information and insights within its trustless marketplace”, says Felix.”Enabling new markets and giving market access to more people are the killer apps of crypto, and we’re excited by the progress Numerai is making in both of these areas with the launch of Erasure Bay,” said Tom Schmidt of Dragonfly Capital Partners.Purchasers in the NMR token sale include Union Square Ventures, Placeholder, CoinFund and Dragonfly Capital. Numerai founder Richard Craib, who previously bought $1 million worth of NMR in December 2019, also participated in the round. “NMR is all about having skin in the game – it would be cringe if I didn’t participate,” said Craib.
I am the Consulting Launch Editor of EntreprenuerDB.com which is one of the biggest resource banks for entrepreneurs globally.