Yes, you’d normal apply decals onto a couple of layers or more of finish. It should then stay on. And then you need finish over the top, after which the edges of the decal should become almost invisible. I normally cut around my decals to have the bare minimum of clear around them.
You’ll need quite few layers of finish over the top of the whole headstock face if you want to then sand it flat and remove the ridge line caused by the decal thickness. Not enough and it’s very easy to sand through the decal. I’ve done it before even though I thought I had enough layers.
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