The upcoming launch of Babylon’s Bitcoin Staking Mainnet marks a significant milestone in the cryptocurrency landscape and in the evolution of Bitcoin. Babylon is redefining the utility of Bitcoin by integrating it with Proof-of-Stake (PoS) systems, offering new opportunities for Bitcoin holders. Here’s what you need to know about this launch:
1. What is Babylon Bitcoin Staking?
Babylon’s Bitcoin Staking allows Bitcoin holders to participate in the security of PoS blockchains without transferring their assets to a third party. Traditionally, Bitcoin has been seen as a store of value, but Babylon expands its utility by enabling Bitcoin to play an active role in securing various PoS ecosystems. This is achieved through a trust-minimized protocol that connects Bitcoin holders with the demand for network security across multiple blockchain systems, including PoS chains. Read our comprehensive overview of Babylon here.
2. What is Babylon’s Mainnet Launch?
The mainnet launch of Babylon represents the transition from a developmental stage to a fully operational network. This is when the protocol becomes available for public use, allowing Bitcoin holders to start staking their assets on a live blockchain. The launch is designed to be phased, ensuring that each component of the network is thoroughly tested and integrated before moving to the next stage. This approach provides a structured rollout, allowing users to gradually engage with the staking process.
3. What Are the Three Phases of the Launch?
Babylon’s mainnet launch is divided into three distinct phases, each with specific goals and functionalities:
4. What Can You Do in the Babylon Mainnet Launch?
During the Babylon mainnet launch, Bitcoin holders can actively participate in securing PoS blockchains by locking and staking their Bitcoin. In Phase 1, you can initiate staking by locking your Bitcoin in a secure, self-custodial vault on the Bitcoin blockchain. As the launch progresses into Phase 2, your locked Bitcoin will begin to contribute to the consensus process of the Babylon PoS chain. By Phase 3, you’ll have the ability to stake your Bitcoin across multiple PoS chains, maximizing your potential rewards and playing a crucial role in the security of these networks.
5. How Can You Stake Your Bitcoin?
Staking your Bitcoin with Babylon is a multi-step process that begins in Phase 1:
6. What Rewards Can You Get?
In Phase 1, there are no direct staking rewards because the PoS chain is not yet active. Instead, Babylon introduces a point system to track staking activity. These points, though they do not have direct monetary value, could potentially be used for future benefits within the Babylon ecosystem. As the network progresses into Phase 2 and beyond, your Bitcoin will earn rewards based on its contribution to the security of the PoS systems, allowing you to gain value from your staked assets.
7. Which Wallets Can You Use?
To stake your Bitcoin with Babylon, you’ll need a compatible Bitcoin wallet. The official Babylon staking web application (btcstaking.babylonlabs.io) provides a list of verified finality providers and supports most Bitcoin wallets. You can also use third-party services such as staking websites, custody solutions, or command-line interface (CLI) tools if you are more technically inclined. It’s important to choose a wallet that meets your security needs and is compatible with the staking process. Here’s a list of supported wallets:
8. What Are the Transaction Details in Phase 1?
During Phase 1, all transactions are conducted on the Bitcoin blockchain. These include:
Notably, there is no PoS slashing in Phase 1, meaning your staked Bitcoin is not at risk of being slashed for any consensus violations.
9. What Are the Limits and Caps in Phase 1?
To ensure security and broad participation, Phase 1 introduces several limits:
These caps and limits are designed to foster a secure and inclusive staking environment.
10. Eligibility and Security Considerations
Before participating in the Babylon mainnet launch, it’s crucial to ensure you meet the eligibility criteria. Staking is prohibited for residents of certain countries, including the United States, Canada, Australia, and Mainland China, due to regulatory restrictions. Additionally, Babylon has implemented robust security features, such as the covenant committee, a multi-signature verification scheme that ensures the safety and correctness of unbonding transactions.
The Babylon Bitcoin Staking Mainnet launch represents a significant evolution in how Bitcoin can be used within the broader blockchain ecosystem. By participating in this launch, you can contribute to the security of PoS systems, earn rewards, and engage with one of the most innovative protocols in the cryptocurrency space. As the launch progresses, staying informed and involved will be key to maximizing your experience with Babylon.
And that's everything you need to know to be prepared for the mainnet launch. Stay tuned and follow us on Twitter/X to stay ahead of the curve.
Ready to start? Stake your first BTC with Babylon and Chorus One today!
About Chorus One
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 60+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
