The Popularization, Financialization, and Demand-Driven Development of NEST

The NEST system is committed to popularizing and enhancing product usability to attract more users to participate in mining and usage. At the same time, NEST is also advancing the process of financialization, which is similar to the development path of Ethereum. Ethereum has gradually established strong financial attributes through methods such as GAS payments, ICO financing, and DeFi liquidity mining.

NEST is exploring the use of linear operators to produce more assets and establish a closed-loop application with NEST. This financialization process may bring exponential effects, such as generating PUSD by collateralizing NEST, then purchasing NEST again and continuing to collateralize, thereby continuously increasing leverage. This process will also increase calls on oracles, further enhancing the repurchase demand for NEST.

In CoFiX 2.0, automated hedging and asset allocation will become possible. Users can place assets on-chain and automatically adjust to the edge of the capital market line through a gamified approach, while setting acceptable risk-return parameters. This gamified asset management mechanism will drive the automatic generation or offsetting of leverage, further strengthening repurchase demand.

Based on price information flows, various trades can be designed, including options. In the future, the NEST system may form an ecosystem similar to Wall Street, where the DAO plays a role similar to Goldman Sachs, acting as the absolute seller of options, earning time value and acquiring NEST from the market, pushing the system into a deflationary phase.

The NEST 4.0 version plans to randomize mining and financialize the system layer to address the challenge of verification incentives. At the same time, decentralized risk management will also bring new challenges, such as determining the overall collateral rate of the system and issues related to the fragmentation of valuable assets.

The development path of blockchain projects is changing. The traditional "consensus-price-ecosystem" model is no longer applicable, as it can lead to catastrophic equilibrium. The NEST team has proposed a new development path: "demand-ecosystem-consensus". This approach emphasizes starting from internal demand and gradually expanding to a broader ecosystem.

Starting from the internal demand of the NEST system, such as the demand from miners for quoted assets, it gradually expands to the NEST ecosystem, related communities, DeFi communities, ETH communities, and eventually to a broader audience of internet users and the general public. This inside-out demand satisfaction strategy can reduce uncertainty and increase the sustainability of the project.

Ultimately, the goal of NEST is to create new attributes and characteristics by continuously meeting the internal demands of the system and ecological needs, thereby still bringing value to society when reaching a state of equilibrium. This demand-driven development model is expected to bring long-term vitality and growth potential to the NEST project.