How exactly is $NAT generated?

It's not created by anyone, but derived from Bitcoin block data. NAT is generated using the Bits field!
Each Bitcoin block creates a set of sub-data, including total transaction volume, fees, etc. One of these data fields is called "bits," which is related to the miner difficulty adjustment to ensure that a block is mined approximately every 10 minutes.
As Bitcoin's computational power generally increases, the bits field decreases, thereby increasing the difficulty for miners. Block 1 produced 486 million bits, and block 700,000 produced 386 million. Then, these bits are used to generate $NAT .
Therefore, each block creates about 386 million $NAT . This means the supply of $NAT is constantly increasing, and $NAT represents a non-arbitrary token, which simply means the data is not random but logical. In this case, the token derives data from relatively predictable Bitcoin block data.
Most tokens are essentially arbitrary, artificially created by their creators, so why is $NAT important?
$NAT and Bitmap are the first protocols to utilize non-arbitrary data to create supply, offering advantages that arbitrary tokens cannot provide.
🟧 Predictability - Bitcoin has 15 years of data for cross-referencing, which means the $NAT supply is highly predictable and can be forecasted for many years into the future.
🟧 Integrity - $NAT is owned by the data, meaning the supply cannot be manipulated. We always know the emission schedule. No other token can claim this because it can be changed at any time due to its centralized nature.
🟧 Incentives - $NAT provides incentives to miners and node operators by offering newly generated $NAT as rewards, ensuring network security. This offers further monetary motivation for those protecting the network.
Non-arbitrary tokens set a new standard for supply issues, and as new use cases are found for them, this standard will continue to evolve in the coming months.
$NAT is the first token to discover this, and it is also considered a potential governance token for future NAT. It has an active community that is enthusiastic about developing this new standard!