> 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/network-economics.md).

# Overview

Network Economics explains GAS, fee flow, node staking, node incentives, and economic parameters that are still under design. It serves node operators, developers, communities, sponsors, and long-term builders.

## 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. GAS is planned to be issued by a protocol on Bitcoin L1.
2. Total supply is fixed.
3. GAS enters SatoshiNet through Transcend / STP.
4. GAS is used for transactions and smart contract fees.
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.

Full issuance, staking, penalties, node admission, initial distribution, foundation governance, and legal arrangements remain under design.

**Page Status: Design in Progress**