Babylon Staking

Selecting the right validator can be challenging. Once the provider enters our Staking Rewards Verified Staking Provider (VSP) Program, you will be able to support your decision-making process. Through this program, we thoroughly evaluate factors such as security measures, on-chain reliability, provider setup, and value-added services for the whole ecosystem.

In addition, you can consider other metrics when selecting a provider to delegate to:

Commission: The commission rate represents the portion of your rewards that validators retain. A higher commission rate decreases your earnings, while a lower rate may affect the provider’s profitability and sustainability.

Network Share: Delegating to popular validators can raise centralization risks, while smaller providers may struggle with profitability. Supporting smaller providers helps decentralize the network but requires monitoring to ensure they stay active.

Number of Users: Validators with more delegators contribute to stronger network security and are often seen as more trustworthy.

Performance: The metrics inform about the validator’s reliability, security, and profitability. Choose a validator with the highest possible uptime performance. Our recommendation is to select reputable validators with high performance and a long history of not being slashed.

The Babylon chain has an annual inflation rate of 8% for the first year, with subsequent years' inflation rates subject to governance proposals. Babylon Chain's reward mechanism leverages BABY token inflation, set at 8% per year. Half of this inflation rewards BTC stakers, while the other half rewards holders of the BABY token.

We strive to make staking as safe and transparent as possible, however, it's important to consider factors that may influence whether a particular staking option is appropriate for you.

Protocol Security Risks: There is an inherent risk that the protocol could contain unknown bugs. This not only applies to staking but your BABY investment in general.

Slashing Risk: Validators can be penalized (slashed) for poor performance or malicious behavior. Babylon Genesis chain enforces slashing to maintain network integrity and security. Specifically, this occurs when a validator signs or votes two distinct blocks at the same height.

Please note that this is not an exhaustive list of all the risks related to staking.

BABY is the native token of the Babylon Genesis blockchain, a pioneering network that merges Bitcoin’s security with the efficiency and scalability of Proof-of-Stake systems. Babylon Genesis is the first Bitcoin Secured Network, designed to allow both Bitcoin and BABY token holders to contribute to network security and governance.

Gas Token: BABY is used to pay transaction fees and execute smart contracts on the Babylon Genesis chain.

Governance: BABY holders can propose and vote on protocol upgrades, network changes, and other key decisions, either directly or through delegated validators.

Staking & Security: BABY is integral to Babylon’s dual staking model. Both BTC and BABY tokens can be staked to secure the network. BABY stakers delegate tokens to validators, who maintain consensus and validate transactions. In return, both BTC and BABY stakers earn BABY rewards.

Incentives: BABY’s reward system is designed to incentivize long-term participation and align the interests of validators, stakers, and the broader community.

The total supply of BABY is 10 billion. The distribution is presented as follows:

• Community Incentives: 15%
• Ecosystem Building: 18%
• R&D + Operations: 18%
• Early Private Investors: 30.5%
• Team: 15%
• Advisors: 3.5%

Babylon is an innovative blockchain project that bridges Bitcoin with Proof-of-Stake ecosystems, enhancing security, scalability, and functionality for decentralized applications. By integrating Bitcoin's robust security model, Babylon strengthens PoS networks. Key features of Babylon’s protocol include:

Security for PoS Chains: PoS chains and dApps can opt into Babylon's Bitcoin-backed security model, benefiting from improved safety, economic stability, and adoption potential.

Modular and Scalable Design: Babylon can secure any PoS chain, enabling scalable restaking opportunities for Bitcoin holders.

Bitcoin Staking Protocol: A two-sided market where Bitcoin holders can lock their assets, select PoS chains to support, and earn staking rewards.

Bitcoin Timestamping: Babylon synchronizes PoS chains with the Bitcoin blockchain, enhancing transaction validation and enabling faster unbonding periods.

Bitcoin Secured Networks are decentralized networks that use the Babylon Bitcoin staking protocol to secure and enhance their operations by leveraging Bitcoin's security and liquidity. By staking Bitcoin, BSNs gain decentralized, censorship-resistant security without relying on intermediaries or bridges. The first BSNs, starting with the Babylon PoS, will include L1 chains (built with Cosmos SDK) and rollups (using OP Stack or Arbitrum). With over 57,000 Bitcoin already staked, BSNs can access this security while freeing their native tokens for other activities. BSN characteristics involve:

Bitcoin-backed Security: Direct access to Bitcoin’s security without intermediaries or bridges.

Enhanced Decentralization: Improved network resilience and censorship resistance.

Native Token Liquidity: No need to lock native tokens for staking, increasing network liquidity.

Bitcoin LSTs: Stakers receive liquid tokens to use in DeFi, boosting BSN liquidity.