The next step is to disassemble the whole thing and etch the parts that are damascus and to filework the stainless spacers and then reassemble it.
Another side note: I got up early Thursday and went to my shop where the damascus bar stock was annealed and waiting for me to cut out the guard and ferrule parts. I had to grind out the general shape and heat the ends and hammer them to the right curves, let it cool and start in on it with files and sand paper. It was Thursday evening after dark when I got it all assembled for good. So, this guard/ferrule took all day to make and finish. I worked a long day only taking an hour or so to make some progress on another knife. I say this to let you know that this kind of knife making is real work, for me at least.
Yet another side note: In the above picture you can see curves going different directions. The choil, the guard bottom, the guard top, the plunge grind, etc. When all or most of these form a complimentary relationship, the knife is more pleasing to the eye. Sometimes it's not as good as it is on other knives. That's just the way it is. But, by keeping this fact in my mind, I intend to more and more use this when progressing along though the construction, but it's especially important when designing it to start with. It should not be an accident that it looks good.