The Development Path of the NEST System: Building Ecology and Consensus from Demand

The NEST system is working to simplify and enhance product usability to attract more users to participate. At the same time, NEST is also promoting the process of financialization, aimed at strengthening the financial attributes of the system. This process is similar to the development trajectory of Ethereum, evolving from the initial functional demands ( such as GAS fee payment ) to gradually become an ecosystem with strong financial attributes.

Currently, NEST is exploring the generation of more assets through linear operators and establishing an application closed loop with NEST. This method is somewhat similar to stablecoins, but not exactly the same. If it only remains at the functional level, its value will be greatly discounted. The financialization process may bring exponential effects: users can mortgage NEST to generate PUSD, then purchase NEST, cycling this process to continuously increase leverage. This process will also increase the demand for oracle calls, thereby enhancing the repurchase demand for NEST.

In CoFiX 2.0, users can place assets on-chain, and the system will automatically adjust asset allocation through a game-theoretical approach, similar to the operation mechanism of AMM. This game-theoretical asset management model can automatically generate or offset leverage, further strengthening buyback demand.

The NEST system may play a role similar to Wall Street in the future, where the DAO may take on functions similar to Goldman Sachs, acting as the primary seller of options. This will drive NEST into a completely deflationary phase. Once the model is established, continuous financialization will guide the system into a normative 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, the concept of decentralized risk management will also bring new challenges, such as determining the overall collateral ratio of the system and which assets can achieve truly valuable fission.

In reflecting on the traditional blockchain development path ( Consensus - coin price - ecology ), NEST proposed a new development path: demand - ecology - consensus. This path emphasizes starting from internal demand, gradually building the ecology, and ultimately forming consensus. This approach helps to avoid the formation of a collapse equilibrium and is more conducive to creating new attributes and functions recognized by society.

The development strategy of NEST adopts an internal-to-external demand analysis approach. Starting from internal system requirements, it gradually expands to the NEST ecosystem, related communities, DeFi communities, ETH communities, and ultimately to a broader user base. This strategy is known as "demand does not overflow", which helps to solidify foundational needs in areas with lower uncertainty.

Overall, the core of the NEST system's development lies in continuously delivering value to the game theory system, essentially creating new attributes and characteristics when a balanced state is achieved. This approach is expected to help NEST find its unique positioning and development path within the complex blockchain ecosystem.