📢 Babylon Proposes Inflation Cut & BTC-BABY Joint Staking
The Bitcoin staking protocol Babylon community has introduced a new proposal aimed at reshaping the $BABY token economy. The plan focuses on reducing inflation and launching BTC-BABY joint staking to strengthen security and long-term adoption.
🔑 Key Highlights:
📉 Inflation Cut: Annual rate lowered from 8% → 5.5% (≈30% reduction).
🪙 Allocation Breakdown:
1️⃣ 1% → Bitcoin ($BTC) stakers (+ commissions for finality providers)
2️⃣ 2% → BABY stakers (+ commissions for CometBFT validators)
3️⃣ 2.35% → BTC-BABY joint staking rewards (1 BTC staked per 20,000 BABY)
4️⃣ 0.075% + 0.075% → Active validators & finality providers (delegation-based)
⚡ Why It Matters:
The introduction of joint staking incentivizes Bitcoin holders to also stake BABY, boosting protocol security while aligning rewards across both ecosystems.
📌 The proposal notes that once trustless Bitcoin custody is enabled, tokenomics will be re-evaluated to further optimize adoption and growth.
DYOR No Financial advice!