
1.Create a new transparent layer.
2.Create your text and position it where you want.
3.Merge the text layer down into the transparent layer.
4.You can go two ways here. You can leave the text as is. Or you can do Layer>Transparency>Alpha to Selection. Then do Script-fu>Selection>Distress Selection. You will probably be working a small area, so lower your settings from the default. I set spread to 4 and granularity and smooth to 2. If you do this, you will need to create a new transparent layer and bucket fill the selection with black. Delete the old text layer, you don't need it. (my example shows both regular and "distressed" text.
5.Duplicate the text layer four times.
6.On your first layer, do Filters>Distorts>Wind. Threshold and strength in my example were set to 10 and 10.
7.On the second layer, rotate it CW 90 degrees, and do Filters>Distorts>Wind. Then rotate it back CCW to its original position.
8.On the third layer, rotate it CCW, do the wind distort, then rotate the layer back.
9.On the fourth layer, rotate it 180 degrees, wind distort, rotate it back.
10. Merge all four layers down onto a white layer.
11. Create a new layer, and do Filters>Render>Clouds>Plasma
12. Do Layer>Colors>Desaturate on the plasma layer.
13. With the plasma layer selected, do Filters>Map>Bump Map and bump map the plasma with your distorted text layer. Check the Compensate for darkening box and the Invert bump Map box. Set the mode to sinusoidal, but experiment with other modes as well. Adjust your azimuth, elevation, and depth settings to get what “looks good”.

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