Babylon Foundation

BTC–BABY co-staking is coming. Babylon’s latest proposal introduces a new way for Bitcoin and BABY holders to earn together through a dual staking system built for alignment and long-term value creation. Here’s how it works 👇

A turning point for Babylon: The major mainnet upgrade was successful! Two critical BABY tokenomics adjustments are activated, along with a handy BTC stake extension feature. 1️⃣ Inflation is reduced from 8% a year to 5.5% a year. This means 250M less BABY is minted a year, for a much more sustainable tokenomics. 2️⃣ Co-staking is introduced. BTC stakers who also stake BABY could receive much higher staking rewards than those who don't. This creates a much stronger alignment between BTC stakers and the BABY ecosystem. 3️⃣ BTC stake extension allows BTC stakers to extend the timelock of their existing stakes without unbonding. This enables stakers to seamlessly continue earning BTC Staking rewards without any interruptions and downtime. Are we stopping here? No! We are just getting started! This is only the beginning of the BABY evolution. This upgrade is the fruit of extensive brainstorming and design discussions between the Babylon Labs team and the Babylon community. Thank you to every community member who has contributed their ideas in the Babylon forum and on social media. Our mission remains the same: We will keep increasing the utility and sustainability of BABY by doubling-down on the Trustless Bitcoin Vault protocol and keep advancing BABY tokenomics with the community.