What is the NEST Protocol (NEST)?
NEST is the native token of the NEST Protocol, which revolves around the concept of pricing oracles. Besides that, it also provides users with a virtual machine. The protocol is based on the Ethereum blockchain. If you want to see the live NEST price, make sure to check out the NEST Protocol price chart above.
When it comes to oracles, these are entities that connect blockchains to external systems, enabling them to interact with off-chain data. This could include data about real-world events like sports games or elections. Since the NEST Protocol provides users with a network of pricing oracles, it allows them to access price information about assets off-chain.
The NEST Protocol functions by using a price reference system referred to as quote mining. Anyone can become a miner and participate in the process of quote mining. Though there are three main actors in this system:
- Miners. The main job of miners is to provide price quotations to the NEST Protocol;
- Verifiers. These are the ones who validate and accept or deny price quotes provided by miners. Besides, verifiers can trade at the quoted price to profit from arbitrage and submit a new price to the chain if the quoted price doesn’t match the market price;
- Price callers. They are responsible for paying fees to the NEST Protocol.
Talking about the virtual machine, the NEST Protocol offers a Probability Virtual Machine (PVM). It’s based on the basic function library and it is similar to the Ethereum Virtual Machine (EVM). By using PVM, developers can create various decentralized applications (dApps).
The Purpose of NEST Tokens
The NEST Protocol tokens are used solely as reward tokens. NEST tokens are rewarded to miners who take part in the quote mining process. Additionally, NEST token holders receive rewards from the Ethereum network for presenting quotations, which encourages them to supply the protocol with accurate quotations.
Tokenomics of NEST
The max supply of NEST Protocol crypto assets is 10 billion. There were no ICOs, private sales, or pre-mining for NEST tokens. All new NEST tokens are minted as rewards through the process of quotation mining. 80% of minted tokens are distributed to miners while the remaining portion is split between NEST nodes and developers.
Just keep in mind that the NEST price is subject to change if you intend to purchase NEST Protocol coins. This is actually the case with most crypto assets, as the swings of the crypto market affect their prices, which can be clearly visible on the NEST Protocol price chart as well.
