Development Path of the NEST System: Building a Sustainable Ecosystem from Demand

The NEST system is exploring a development path that builds a sustainable ecosystem from the perspective of demand. Unlike the traditional "consensus-price-ecosystem" model, NEST chooses to approach from the "demand-ecosystem-consensus" angle to avoid forming a collapse equilibrium.

The primary task is to get more people involved in mining and enhance product usability. Secondly, it is to promote financialization, allowing NEST to have stronger financial attributes. For example, by collateralizing NEST to generate parallel assets, which are then used to purchase NEST, creating a virtuous cycle that continuously increases the demand for NEST.

CoFiX 2.0 will achieve automated hedging and asset allocation. Users can place assets on-chain and automatically adjust to the edge of the security market line through game theory, allowing for automatic trading after setting risk and return. This process will further strengthen the demand for NEST.

In terms of information flow trading, as long as there is price information, various trades can be designed. In the future, NEST DAO may become the absolute seller of options, constantly acquiring NEST from the market, pushing the system into a deflationary phase.

NEST 4.0 will focus on randomizing mining and financializing the system layer, addressing the challenge of validation incentives. In this process, a new decentralized risk management concept will also bring new propositions.

The NEST team believes that a non-cooperative game system will degenerate into a gambling-type project if it cannot create socially recognized new attributes and functions at equilibrium. Therefore, NEST chooses to start from internal needs and gradually expand outward. This strategy of "no external demand spillover" is expected to gain recognition in the DeFi community.

Overall, the core of the NEST system's development lies in continuously delivering value to the gaming system. The real value is in demonstrating new attributes and characteristics when reaching equilibrium, which is precisely the direction the NEST team is striving for.