Development Path of the NEST System: From Demand to Ecology to Consensus

The NEST system is undergoing an important transformation process. The primary task is to popularize it, allowing more people to participate in mining; secondly, to enhance product usability and expand the user base. Financialization is another key direction, which means transforming NEST into an asset with financial properties.

The NEST team is currently exploring the production of more assets through linear operators and establishing an application closed loop with NEST. This method is similar to stablecoins, but different. Staying only at the functional level will limit its vitality, while the financialization process can bring exponential effects: collateralizing NEST to generate PUSD, then purchasing NEST, this cycle can continuously increase leverage. This process will also increase the demand for oracle calls, thereby enhancing the buyback demand for NEST.

CoFiX 2.0 will achieve automated hedging and asset allocation. Users can place their assets on the chain, and the system will automatically adjust them to the edge of the security market line through a game-theoretic approach, conducting automatic trading based on the set risk-return profile. This mechanism is similar to AMM, which can automatically generate or offset leverage, further strengthening the buyback demand.

The NEST system may play a role similar to Wall Street in the future, where DAOs could become the main sellers of options. This will lead NEST into a deflationary phase and establish a complete financial ecosystem.

The development path of blockchain projects is changing. The previously common "Consensus-Token Price-Ecosystem" model is no longer sustainable, as it may lead to a collapse equilibrium. The NEST team has proposed a new path: "Demand-Ecosystem-Consensus". This approach starts from internal demand, gradually expands to a broader ecosystem, and ultimately establishes consensus.

The development strategy of the NEST system starts from internal demand and gradually expands outward. It first satisfies the internal needs of the system, such as miners' demand for quoted assets; then expands to dynamic asset management; and finally to the broader needs of the DeFi community. This strategy of "demand not overflowing" helps to establish a solid foundation.

Overall, the focus of the NEST system's development is to continuously deliver value to the gaming system and create new attributes and characteristics when balance is achieved. This approach is expected to bring long-term sustainable development to NEST.