> For the complete documentation index, see [llms.txt](https://whitepaper.nuon.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.nuon.fi/miscellaneous/system-transition.md). # System Transition A soft premise of the initial state of the Nuon protocol is that available yields exceed the debt obligations created by NUON’s rebase mechanism. The protocol mitigates these risks with the mechanisms described in section 9, but to summarize: a liquidity bootstrapping pool provides the initial pool of capital to subsidize yields in the launch stage of the protocol; ve-weighted vault gauges and governance’s ability to cap mints address this as the protocol continues. Absent these risk controls, the system is vulnerable to a state where available yields are low and inflation is high. In the short term, this can happen due to Nuon’s absorption of all available yields, addressed by the aforementioned risk controls. In the long-term, the protocol will face macro conditions where hyperinflation is imminent and USD starts to lose its store-of-value appeal. Nuon must transition seamlessly through governance’s approval of volatile assets, such as staked ETH LST’s, wrapped Bitcoin, or tokenized RWA’s like gold. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://whitepaper.nuon.fi/miscellaneous/system-transition.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.