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Author: Admin | 2025-04-28
Babylon Chain, launched in 2022 by Fisher Yu and David Tse, allows Bitcoin holders to secure Proof-of-Stake (PoS) chains by staking their BTC while keeping it on the Bitcoin chain. The project uses a trustless and self-custodial staking model, meaning users retain full control of their Bitcoin without relying on bridges or third parties like exchanges.The platform is launching in phases to ensure a smooth rollout and minimize risk, starting with Phase-1, which initially had a 1,000 BTC cap but recently expanded to 23,000 BTC. Future phases will enable multi-staking, allowing Bitcoin to secure multiple PoS chains. This phased approach helps Babylon refine the system and tackle challenges before scaling.According to the founders, Babylon unlocks a third use case for Bitcoin, beyond just holding (store of value) and payments, by allowing it to actively secure decentralized networks for yield. Babylon Chain's ecosystem is still being developed actively, with integrations from and into projects such as Akash, Stride, Injective, Kava Network, SatLayer, and others.How Does Babylon BTC Staking Work?The Babylon blockchain operates as a two-sided security marketplace, where Bitcoin holders provide security for PoS chains in exchange for rewards. On one side, Bitcoin holders stake their BTC, and on the other, decentralized systems like PoS chains, Ethereum rollups, and appchains benefit from increased security.Here’s how Babylon’s Bitcoin staking works at its current stage in late 2024:Bitcoin remains on its chain: You can lock your BTC directly on the Bitcoin blockchain without worrying about it leaving Bitcoin’s secure network.Earn points: In Phase-1, Bitcoin holders don't earn traditional staking rewards but can earn points based on their contributions to the network. These points play a role for the future airdrop.No slashing (yet): Initially, there is no slashing, meaning stakers won't lose their Bitcoin for violating PoS rules. This is to ensure a cautious
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