4. Implementation Steps

The GAST network construction plan is divided into two phases:

First Phase

Building the Algorithmic Stability Protocol: To enhance the stability of the Bitcoin network, an innovative algorithmic stability incentive network is being constructed, aimed at lowering the transaction threshold for users through incentive mechanisms. In this network, users receive BTC rewards for transacting specific inscriptions—data recorded on the Bitcoin network containing specific information. This reward mechanism aims to lower the transaction threshold for trading digital assets on the Bitcoin network due to high fees, stimulating the activity and diversity of the Bitcoin ecosystem.

Participation of Network Fee Donors: The network particularly focuses on attracting early GAST network fee donors. These donors, for their contributions in the early stages of the GAST network, receive GAST rewards in recognition of their early support and trust. These rewards are distributed through a linear release mechanism, where rewards are gradually allocated to donors according to a schedule, promoting long-term holding and continuous healthy development of the network.

Participation of Early Users: Early users receive network fee rewards in BTC by using the GAST transaction system. Specifically, GAST purchasers can receive corresponding BTC rewards, which can largely offset the network fees originally required for purchasing digital assets on the Bitcoin network. The algorithmic stability protocol is an important step in Bitcoin ecosystem innovation, lowering the transaction threshold for users trading GAST on the Bitcoin network and promoting network activity and diversity.

Second Phase

Expansion to Other Digital Assets on the Bitcoin Network: GAST extends to other digital assets on the Bitcoin network, and the network fees generated from transactions with such assets will be refunded in BTC through the GAST algorithmically stable protocol. The expansion plan of the GAST project goes beyond its original framework, aiming to extend the fee subsidy mechanism to other digital assets on the Bitcoin network. The core of this plan is that users holding GAST inscriptions will also enjoy Bitcoin subsidies provided by GAST when transacting with other digital assets engraved on the Bitcoin blockchain.

Expansion Strategy Core Principles

Transaction Inclusivity: GAST extends its utility across the entire Bitcoin network's digital assets, fostering inclusivity where all types of digital asset transactions benefit from fee subsidies, thereby enhancing the appeal of the Bitcoin ecosystem.

Consistent Incentives: Users holding GAST inscriptions receive subsidies when transacting other digital assets, aligning with GAST's mission to reduce transaction costs and encourage broader adoption and use of GAST inscriptions.

Details of the Subsidy Mechanism

Subsidy Scope: All digital assets inscribed on the Bitcoin blockchain, such as NFTs and tokenized assets, are included in the subsidy plan, relieving users from high transaction fees and reducing trading costs while enhancing liquidity.

Eligibility for Subsidies: Only users holding GAST inscriptions are eligible for transaction subsidies on other digital assets, motivating the purchase and holding of GAST inscriptions to capitalize on GAST's subsidy benefits.

Subsidy Distribution: Subsidies are distributed based on the size and frequency of transactions. GAST has established a fair distribution mechanism to ensure all eligible transactions receive appropriate subsidies.

Fund Management: The GAST treasury continues as the primary funding source, with the sustainability of the subsidy mechanism relying on the treasury's financial health. Regular assessments and adjustments of treasury strategies may be necessary to respond to market changes and increased transaction activity.

Anticipated Outcomes and Challenges

Market Activity Boost: The implementation of the subsidy mechanism aims to incentivize more users to trade digital assets on the Bitcoin network, increasing overall market activity and driving ecosystem growth.

User Base Expansion: As transaction costs decrease, it's expected to attract more new users to the Bitcoin network, especially those sensitive to transaction fees.

Challenges and Risks: Implementing this subsidy mechanism faces challenges including fund pool management, fair distribution of subsidies, and long-term economic sustainability. GAST needs a robust risk assessment and management system to ensure successful strategy implementation.