The Development Path and Value Creation of the NEST System

The NEST system is working hard to enhance its value and application scope through various optimizations. The primary task is to simplify the mining process to attract more participants. At the same time, improving product usability is also a focus to expand the user base. Financialization is another key direction, as there is a natural financial demand present in systems like Ethereum.

Currently, NEST is exploring the creation of more assets through linear operators and forming an application closed loop with NEST. Although this parallel asset is similar to stablecoins, it also has its differences. If it remains at the functional level, its value will be limited. The financialization process could bring exponential effects: using NEST as collateral to generate PUSD, then buying NEST, this cycle can continuously increase leverage. This process will also increase the calls on oracles, thereby enhancing the repurchase demand for NEST.

In CoFiX 2.0, hedging and asset allocation will be automated. In the future, users may be able to place assets on-chain, automatically adjusting to the edge of the security market line through gaming methods, and conducting automated trading based on the set risk-return profile. This process is similar to the AMM mechanism, which can automatically generate or offset leverage, further strengthening buyback demand.

Based on price information flow, various trades can be designed, including options. The key lies in how to solve the counterparty issue. If the NEST system is likened to Wall Street, the DAO may play a role similar to Goldman Sachs, acting as the absolute seller of options and earning time value. This could push NEST into a state of complete deflation.

The development path of blockchain projects is changing. The past "consensus-price-ecosystem" model may lead to a crash equilibrium. The new path should be "demand-ecosystem-consensus". Starting from internal demand, gradually expanding to a broader ecosystem, and ultimately forming consensus may be a more sustainable development model.

A successful non-cooperative game system needs to create new attributes and functions recognized by society in a state of equilibrium; otherwise, it may degenerate into a gambling-type project. Starting from the most certain internal demands and gradually expanding outward may be a more robust development strategy. The essence of demand is to continuously deliver value to the system, and the core of value lies in the ability to exhibit new characteristics and attributes when equilibrium is achieved.