I am putting a compensated nuts on a guitar I’m making, I sort of wish I hadn’t but I am. It was an experiment in experimenting.
My understanding is limited but basically the idea is to compensate on the lower frets for the stretch of the string against the nut.
Again as far as I understand it, my plan is to get the nut height relatively correct. My nut is 2mm forward of where it normally would be.
Then I’m going to intonate the bridge saddle but not with the open string. I will do a bunch of fretted notes in the 5 to 12th fret area. So the bridge should be in tune with the Fretboard.
Then, with the bridge in tune with the frets (and out of tune with the nut) I will take a Dremel with a ball cutter and slowly cut away the front of the nut till the open string is in tune with the fretted notes.
I think this will work. I sure AF hope so.
If anyone sees a flaw in my plan let me know.
Ultimately I think the difference with the compensated nut on a well built guitar is pretty small. Trevor Gore talks about using it to fix the intonation on guitars with badly cut fret slots that are out of tune with themselves.
Hope that helps.