The Development Path of NEST and Demand-Driven Ecosystem Construction

The NEST system is developing towards popularization and enhancing product usability to attract more people to participate in mining and usage. Financialization is an important direction for the development of NEST, which is similar to the development path of Ethereum. Ethereum has gradually established strong financial attributes through methods such as GAS fee payments, ICO financing, and DeFi liquidity mining.

NEST is exploring the production of more assets through linear operators and establishing an application closed loop with NEST. This financialization process may bring exponential effects, such as generating PUSD by collateralizing NEST, then purchasing NEST and continuing to collateralize, thereby continuously increasing leverage. This process not only increases the demand for oracle calls but also raises the demand for repurchasing NEST.

The launch of CoFiX 2.0 will enable automated hedging and asset allocation. Users can place their assets on-chain and automatically adjust to the edge of the security market line through a gamified approach, setting acceptable risk and return. This process is similar to AMM, allowing for automatic generation or offsetting of leverage, further strengthening repurchase demand.

Based on price information flow, the NEST system can design various trading products. In the future, NEST DAO may play a role similar to that of Wall Street investment banks, acting as the absolute seller of options, earning time value and acquiring NEST from the market, pushing the system into a deflationary phase. This financialization process will promote NEST into a more standardized development phase.

The traditional development path of blockchain projects is usually "consensus-price-ecosystem". However, the NEST team recognizes that this path may lead to a collapse equilibrium, so they proposed a new development path: "demand-ecosystem-consensus". This approach emphasizes starting from actual demand to avoid creating a debt-ridden ecosystem.

The development strategy of NEST adopts a concentric circle model, starting from internal system requirements and gradually expanding outward to a broader community and market. This "demand not spilling over" strategy helps to solidify the underlying requirements, increase system complexity, and ultimately create demand for the entire ecosystem.

The essence of demand is to continuously deliver value to the game system. A truly valuable system should exhibit new properties and characteristics when it reaches equilibrium. NEST is committed to building a sustainable ecosystem by meeting actual needs, rather than merely relying on speculation and hype.