> For the complete documentation index, see [llms.txt](https://docs.sat20.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sat20.org/english/network-economics.md).

# Network Economics

Network Economics explains gas metering, testnet SGAS, fee flow, node staking, incentives, and parameters still under design. Runtime code already executes transaction/contract fees and Autopay deductions; this does not mean that formal GAS issuance, allocation, staking, or governance rules are final.

## Core Distinction

| Concept   | Meaning                                                                          |
| --------- | -------------------------------------------------------------------------------- |
| Gas Unit  | Unit that measures compute, storage, and execution resources                     |
| GAS Asset | Protocol asset used to purchase Gas Units, pay transaction fees, and stake nodes |

## Current Design Constraints

1. Formal GAS is planned to be issued by a protocol on Bitcoin L1; testnet SGAS validates fee flows and is not the formal asset.
2. Total supply is fixed.
3. GAS enters SatoshiNet through Transcend / STP.
4. Gas metering and deductions are implemented for transactions, smart contracts, and services such as DKVS Autopay.
5. Mining Nodes and Core Nodes are planned to use GAS as staking collateral.
6. GAS fees generated by contracts and transactions are currently designed to go to the block-producing node.
7. The current fee design does not burn a base fee.

Formal issuance, staking, penalties, open node admission, initial distribution, foundation governance, and legal arrangements remain under design. Testnet balances, faucets, and per-block Autopay payments are not evidence of formal supply or economics.

**Page Status: Design in Progress**