The Babylon Bitcoin Staking Phase-1, Cap-3 opens on December 10th, 2024, around 11AM UTC. Babylon is opening its Bitcoin staking cap for a duration-based cap that will last 1000 BTC blocks (roughly one week).
As of 11/25/24, token rewards are not live, and BTC stakers currently earn points. Learn more in our FAQ section below.
Babylon allows for the staking of BTC directly on the Bitcoin blockchain, without the need for smart contracts or cross-chain bridges. This enables BTC holders to stake and earn rewards for enhancing the security of the Babylon network and its associated consumer chains. This method represents a significant advancement in Bitcoin’s utility, particularly for institutions looking to leverage their assets more effectively. If you are interested in taking a deep dive into what happens behind the scenes when BTC is staked using Babylon, you can read our technical deep-dive here into Babylon Chain.
Why Stake BTC with Figment?
- Native Bitcoin Staking: Babylon enables BTC staking directly on the Bitcoin blockchain without the need for smart contracts or cross-chain bridges.
- Potential Rewards: Currently earn points for staking, with the possibility of token rewards in the future.
- Enhanced Security: Contribute to the security of the Babylon network and its associated consumer chains while putting your BTC to work.
- First-Mover Advantage: With a limited staking cap of 10,000 BTC, early participants can secure their position in this ecosystem.
Babylon: Step-by-step Bitcoin Staking Guide
To get started staking Bitcoin using Babylon, navigate to their native dashboard: https://btcstaking.babylonlabs.io/
Connect your wallet by clicking the button in the top right corner of the page.
Once your wallet is connected, scroll down to find “Figment” on the page, as shown below.
Click on Figment, and then follow the instructions in the dashboard to proceed with the staking transaction.
As a note, there will be a transaction fee when you submit the staking transaction.
Disclaimer for Babylon staking:
Staking is prohibited, and you will not receive points or staking awards, if you are:
(a) a resident or agent of, or an entity organized, incorporated or doing business in any country to which the United States, the United Kingdom, the European Union or any of its member states or the United Nations or any of its member states (collectively, the “Major Jurisdictions”) embargoes goods or imposes sanctions; or if you are, or if you directly or indirectly own or control, any person or entity that is listed on any sanctions list or equivalent maintained by any of the Major Jurisdictions; or
(b) a U.S. Person as defined in 17 CFR § 230.902, or currently or ordinarily located or resident in (or incorporated or organized in) the United States of America, Canada, Australia, or Mainland China.
FAQs:
How will slashing work?
There is currently no slashing on Babylon.
How many BTC will be allowed in Cap-3?
Cap-3 will run for 1,000 BTC blocks (roughly one week). Users can stake BTC anytime during this open window.
What will the rewards rate be on staked BTC?
First 300 BTC blocks: 100,000 points per block. Remaining 700 BTC blocks and beyond: 21,000 points per block.
The points per BTC block will be allocated proportionally among all active stakes (from all caps) within that block.
What is the minimum / maximum amount of BTC you can stake per transaction?
Minimum stake per transaction: 0.005 BTC
Maximum stake per transaction: Increased to 5,000 BTC
Do I have to bridge my Bitcoin to stake?
No, all Babylon staking occurs on the Bitcoin chain using Bitcoin script and UTXOs.
Figment Involvement in Babylon Chain
Figment has been live and active as a finality provider on Babylon’s testnet, and we have been live since Day 1 of mainnet. When Babylon re-opens the cap, we are ready to accept more Bitcoin stake.
While staking BTC through Babylon may initially appear complex, it’s important to note that the underlying mechanism leverages established Bitcoin capabilities. This approach renders the staking process to be similar to that of existing delegated Proof-of-Stake chains, providing a familiar framework for institutional investors.
As the Babylon ecosystem continues to evolve, we are committed to providing ongoing insights and updates. For more information on Babylon, please visit the links below:
