NEST Tokenomics

Issuance and burning mechanism:

$NEST can be burned or generated according to the on-chain's instructions. NEST will be destroyed as the cost of generating financial assets, while NEST could be generated when the financial assets are settled.

For example, you want to buy an option on NEST and you burn 1K $NEST as the purchase cost, then you receive the option. When the exercise day comes, the option's payoff is 10K $NEST, then after you exercise the option, NEST smart contract will issue additional 10K $NEST to you for settlement. If the option's payoff is 100 $NEST, the smart contract will issue additional 100 $NEST to you.

All financial products can be traded with NEST smart contracts, with no market makers or intermediaries to add extra costs, and at the same time, all financial products can be settled, which in theory has a nearly infinite supply, so we call it infinite liquidity.

Risk sharing for token holders:

All NEST token holders will jointly bear the result of the change in the total amount of NEST coins. Since the supply of NEST coins is decreasing in the long run, the long-term value of NEST coins is guaranteed to rise.