Wu said that Babylon will launch the Phase-2 testnet (bbn-test-5) on January 8, 2025. The testnet is based on the Babylon PoS chain and uses Signet Bitcoin and Babylon Token for simulation testing. It focuses on the registration and on-chain operations of Phase-1 Signet Bitcoin pledges. Participants include pledgers, Finality providers, CometBFT validators, wallets and dApp developers. The testnet has no incentives, only involves simulated tokens, and will not include other Bitcoin Secured Networks.