2. Introduction

BRC-20 protocol+smart contract

To understand the phenomenon of fluctuating Bitcoin network fees, one must start with its decentralized nature and implementation in blockchain technology. Bitcoin transactions depend on miners within the blockchain network, who verify transactions by solving complex algorithmic problems and add them to the blockchain. In this process, transaction fees play a crucial role as incentives for miners. Network congestion is a key factor driving fee volatility. Bitcoin blocks have a limited size, usually 1MB, meaning each can contain only a limited number of transactions. When network transaction volume exceeds the capacity of the blocks, users must compete for the limited space by raising their transaction fees, thereby accelerating the processing of their transactions. Market fluctuations also significantly impact fees. The volatility of Bitcoin's price directly affects the frequency of transaction activities. Generally, when Bitcoin's price rises, so does transaction activity and fees, and vice versa. Additionally, adjustments in mining difficulty, which occur automatically every two weeks to ensure a block is generated every ten minutes, affect miners' profits and the transactions they choose to process.

User behavior and expectations also influence fees. Different expectations regarding transaction confirmation times lead to varying willingness to pay fees. Some users, seeking fast transactions, may pay higher fees. A notable example occurred in December 2017 when Bitcoin's network experienced severe congestion. This event posed a stern challenge to Bitcoin's operational mechanisms and triggered extensive discussions about its underlying technology and future development. The surge in investor interest in Bitcoin, particularly during the rapid price increase at the end of the year, attracted many new investors and traders, causing a dramatic increase in transaction numbers. As more people attempted Bitcoin transactions, the network's transaction volume grew rapidly, leading to congestion. Other factors, such as technical limitations, competitive fee markets, lack of scaling solutions, and the rise in non-traditional transactions, contributed to this historic event.

The GAST project offers a new token, $GAST, as a solution to the high costs of the Bitcoin network. The project aims to implement its strategy in two phases: first, by subsidizing the transaction fee for GAST from our BTC pool, and then extending this approach to all digital asset transactions within the Bitcoin ecosystem. To subsidize the transaction fee, GAST has established a treasury initially funded by donations from Bitcoin holders. Users holding GAST will have transaction fees subsidized by Bitcoin from the treasury based on the share of $Gast they hold. The first phase of the GAST project will focus on GAST transactions to test and optimize the subsidy mechanism. The second phase will expand to all types of inscription transactions within the Bitcoin ecosystem. This strategy aims to reduce transaction costs for users, increase the attractiveness of the Bitcoin network, and promote broader adoption, especially among users of small transactions. In this scenario, GAST will lower the barrier to Bitcoin network transactions, steadily increasing user demand, the demand for GAST, and its market value, thereby attracting more Bitcoin holders to participate and creating a positive cycle.