Step 2

We need to create two additional images, one to feed into the DisplaceMap paint mode, the other to use as an Alpha channel. Make a copy of the text image with the Copy Image item in the Image menu. Select the GaussianBlur paint mode, and fill the entire layer with it. Increase the radius until the text is very fuzzy. The fuzzier the text now, the more pronounced the final effect will be. Press the button to make the blur permanent.