Babylon (BABY) unlocks Bitcoin utility beyond storage
By enabling non-custodial BTC staking, Babylon lets users earn yield while maintaining control of their Bitcoin.BABY token drives governance, fees, and staking rewards
BABY powers on-chain decisions, processes transaction fees, and incentivizes network security through dual staking.New Kraken partnership adds real-world traction
Users can now stake BTC via Kraken and receive BABY rewards—bridging Bitcoin and DeFi without external wallets.
Babylon (BABY) empowers Bitcoin holders to earn yield via non-custodial staking, transforming BTC into a security layer for PoS chains and fueling a decentralized, dual-token ecosystem.
BABYLON (BABY) LATEST NEWS
On June 19, U.S.-based crypto exchange Kraken announced a new partnership with Babylon, launching a service that allows users to stake their Bitcoin—without the need to interact with external wallets.
A key aspect of this service is that staking rewards are not paid in Bitcoin, but in BABY, the native token of the Babylon network. This introduces a new earning model where returns are tied to Babylon’s network value, offering a distinct perspective compared to traditional Bitcoin yield strategies.
BTC Staking is here — powered by Babylon, now on Kraken.
✔️ Up to 1% APR – paid in $BABY
✔️ No bridging, wrapping or lending required
✔️ Unlimited staking
✔️ Weekly payouts
Put your bitcoin to work ⬇️https://t.co/OUqlgTKc8G pic.twitter.com/usctmQ9vzH
— Kraken Exchange (@krakenfx) June 19, 2025
WHAT IS BABYLON (BABY)?
Babylon (BABY) is the world’s first Bitcoin Security Network (BSN), aiming to redefine Bitcoin’s role beyond just storage or payment. Its core mission is to allow Bitcoin holders to earn yield by contributing to the security of Proof-of-Stake (PoS) blockchains through non-custodial staking—without compromising decentralization.
While Bitcoin is traditionally seen as “digital gold” for long-term holding or simple transfers, Babylon (BABY) challenges that narrative. It introduces a groundbreaking method that allows BTC holders to actively participate in the PoS ecosystem without leaving the Bitcoin network.
The highlight of Babylon’s design is non-custodial BTC staking—a mechanism that enables users to stake their BTC directly on the Bitcoin chain, without the need for centralized bridges or third-party custodians. This establishes Babylon as a secure bridge between Bitcoin and modern PoS chains like Cosmos and Ethereum Layer 2s.
In essence, Babylon (BABY) transforms Bitcoin into a security layer for other blockchains while unlocking new DeFi liquidity pathways for BTC across networks.
📌 Who Founded Babylon?
Babylon (BABY) was founded by a team of world-class experts with deep roots in academia and cryptographic engineering. The two co-founders are:
David Tse, a professor of Electrical Engineering at Stanford University and a leading authority in communications and cryptography.
Fisher Yu, a blockchain researcher and cryptographic system developer.
In addition to a strong core team, Babylon is guided by an advisory board composed of domain specialists offering strategic and technical insight. The protocol has also established strategic partnerships with major ecosystems such as Injective, Cosmos Hub, Akash Network, Lombard, Binance Web3 Wallet, and OKX Wallet.
On the investment front, Babylon (BABY) has earned the trust of top-tier VCs:
In 2022, it raised $8.8 million in seed funding, led by Polychain Capital, Hack VC, Polygon Ventures, and OKX Ventures.
In December 2023, it secured an $18 million Series A to further build out its staking infrastructure and product lines.
In February 2024, Binance Labs announced a strategic investment in Babylon (BABY)—a significant validation of its modular blockchain security vision (exact amount undisclosed).
These funding rounds not only fuel Babylon’s technical development but also reflect growing market confidence in the emerging narrative of Bitcoin as a decentralized staking asset.
>>> More to read: What is Restaking? How to Earn More Rewards?
Babylon Phase-2 launch
Babylon Genesis, the first chain that is secured by Bitcoin staking goes live 10AM UTC, April 10, 2025. It is a key step in realizing the third native use-case of Bitcoin after payment and holding: staking.
Babylon Genesis: Secured by Bitcoin to Unite the… pic.twitter.com/fEPQtmUPFr
— Babylon Foundation (@bbn_foundation) April 9, 2025
HOW DOES BABYLON (BABY) WORK?
Babylon (BABY) operates as a standalone Layer 1 blockchain designed to harness Bitcoin’s unparalleled security architecture. At its core, Babylon enables BTC holders to stake their Bitcoin directly, earning rewards by participating in validation processes across Proof-of-Stake (PoS) networks—all without sacrificing control or decentralization.
This novel mechanism not only enhances the economic utility of idle BTC but also introduces a new layer of trust to cross-chain DeFi applications. By allowing users to maintain custody of their coins while securing other networks, Babylon (BABY) represents a major innovation in the application of Bitcoin.
✅ Bitcoin Staking (Native, Non-Custodial)
The Babylon Bitcoin staking protocol allows users to stake BTC directly on the Bitcoin chain—no wrapping, no bridging. Instead of relying on third parties, users retain full control of their assets while staking through native Bitcoin scripts. This enables seamless integration into the broader Babylon security ecosystem without compromising the decentralization or security of the original Bitcoin network.
✅ Bitcoin Timestamping Protocol
Babylon introduces a timestamping layer that leverages the Bitcoin blockchain to defend against remote attacks. By anchoring events with precise timestamps, the protocol strengthens data integrity and counters threats like double-spending—especially in partner networks like Akash. This method not only reinforces Babylon’s own security framework but also provides cryptographically verifiable assurances for cross-chain systems.
✅ Bitcoin-Based Security Layer for PoS Chains
Beyond staking, Babylon (BABY) also allows Bitcoin holders to contribute security to external PoS chains without intermediaries. This means BTC liquidity can remain untouched, while its security value is exported to other networks. Through its custom staking infrastructure, Babylon creates a trustless, efficient channel for decentralized asset participation—anchored by Bitcoin’s own consensus model.
✅ Dual Staking: BTC + BABY Token
Babylon employs a dual staking model involving both BTC and BABY tokens. While BTC acts as the external security provider, BABY plays a central role in economic alignment and validator delegation.
BABY holders can delegate tokens to validators who verify transactions and maintain consensus. In return, stakers are rewarded—receiving a portion of the 8% annual inflation rate, of which 4% is allocated to Bitcoin staking rewards.
This dual staking mechanism enhances Babylon’s economic and network security while offering yield opportunities to both BTC and BABY holders. It also solidifies Babylon’s role as a modular, security-focused infrastructure layer that leverages Bitcoin’s battle-tested consensus model for broader blockchain ecosystems.
>>> More to read: What Is Crypto Staking?: Overview
WHAT IS $BABY?
The BABY token is a core component of the Babylon (BABY) ecosystem. It plays a vital role in governing the protocol, facilitating transaction fees, and distributing staking rewards across the network. Here’s a breakdown of its primary functions:
1. Governance and Voting Power
As Babylon (BABY) shifts from centralized control to a more community-driven governance model, BABY token holders gain the ability to directly influence the protocol’s evolution.
Holders can submit proposals and vote on critical decisions, including upgrades, parameter changes, and strategic direction. If a staker abstains from voting, their vote defaults to the validator they have delegated to—ensuring every staked token contributes to governance outcomes.
2. Transaction Fees
In Babylon’s Genesis network, the BABY token is used to pay for transaction fees. This design creates a seamless bridge between Bitcoin’s robust security and the flexible, programmable world of DeFi. By using BABY for gas fees, Babylon ensures fast, low-cost transactions while maintaining a high level of decentralization and scalability.
3. Staking Rewards
BABY tokens can be delegated to validators, allowing holders to secure the network while earning rewards. This dual incentive—security and yield—boosts active participation within the Babylon ecosystem.
Additionally, enabling BTC staking on Babylon’s PoS chain unlocks further utility for Bitcoin, allowing it to generate yield and cover transaction costs without sacrificing liquidity.
📌 BABY Tokenomics
The total supply of BABY is capped at 10 billion tokens, with initial allocation structured to balance growth, decentralization, and long-term sustainability:
Community Incentives: 15%
Private Investors: 30.5%
R&D and Operations: 18%
Advisors: 3.5%
Ecosystem Development: 18%
Core Team: 15%
This allocation reflects Babylon’s commitment to building a resilient, community-led ecosystem—one where contributors, builders, and stakeholders all share in its growth and governance.
>>> More to read: What is GST? Earn Money Just by Walking with STEPN
BABYLON (BABY) SUMMARY
Babylon (BABY) is the native token of the Babylon Genesis blockchain—a next-generation network designed to unlock new utility for Bitcoin in the decentralized finance (DeFi) ecosystem.
Traditionally seen as a store of value, Bitcoin has had limited use in smart contract environments. Babylon (BABY) changes that narrative by enabling BTC holders to stake their Bitcoin and help secure other Proof-of-Stake blockchains—without giving up custody of their assets. This innovation transforms Bitcoin from a passive asset into an active force for decentralized security, with BABY at the heart of its governance, incentives, and network operations.
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〈What is Babylon (BABY)? Why Is It Worth Your Attention?〉這篇文章最早發佈於《CoinRank》。
