📝 As the most worthwhile unreleased Bitcoin ecological protocol to participate in, Babylon @babylonlabs_io issued an announcement about staking last night. Here is the information and news not mentioned in some announcements. In addition, there are suggestions for direct participation and third-party participation:
🌟Conclusion first:
Currently, there are two ways of participation: direct participation (including third parties) and indirect participation by LRT.
1. First, let’s analyze direct participation. As a retail investor, you have to compete with LRT to get the gas fee in the pool. There is no queuing rights for the overflow, so you can only exit. Then, you will need to pay transaction fees and withdrawal fees when you exit. This is not recommended for retail investors who do not have rich experience in pool grabbing and have no absolute estimate of project returns.
2. Analyze the indirect participation method of LRT. In view of the risks of direct participation, I personally recommend participating through carefully selected unissued LRT. Here you need to consider the quota, ecology and token value. In this way, although your babylon points are diluted to a certain extent, there is compensation in liquidity, ecology and protocol tokens, and the protocol can generally grab a certain quota, so you will not lose everything.
3. Several ways for individuals to participate.
(1) Always pay attention to the methods of direct participation. If other circumstances change at that time, you can consider direct participation.
(2) The @SolvProtocol introduced earlier is based on the fact that the ecosystem is very prosperous and downstream LRT is widely used. However, the quota is currently full and I cannot participate.
(3) Considering the background, operational stability and total amount of credit, I chose Bedrock. For detailed strategy, please see here: http://t.cn/A6RhVEms
(4) Considering the financing background and upstream and downstream coverage, Lorenzo was considered before. The specific strategy can be seen here: http://t.cn/A68IPY3s
Specific introduction:
1/ Babylon aims to connect#Bitcoinholders with the network security needs of the PoS system through a trustless intermediary. The project will be launched in three phases. It is currently in the initial stage of the first phase, and the mainnet will be launched next week.
2/ Staking rules:
• Initial total staking limit: 1,000 BTC
• Single pledge range: 0.005 - 0.05 BTC
• Maximum staking period: approximately 15 months (64,000 Bitcoin blocks)
• Allow unbinding at any time, the unbinding period is about 7 days (1008 Bitcoin blocks), unbinding requires unbinding transaction fees (0.0016BTC) and withdrawal transaction fees
• First come first served basis, no queueing
• According to the rules I learned from the LRT protocol, each LRT protocol only gives a maximum of 250 BTC to grab
It should be noted here that although setting limits is a decision that favors retail investors, the first layer of Bitcoin is a place for competing for GAS. In addition, transaction fees and withdrawal fees are required when unbinding, so retail investors need to be cautious when participating directly. Newbies are advised not to get involved.
3/ Points system:
In the first phase, there is no direct staking reward, but a points system is adopted:
• Each Bitcoin block is allocated 3,125 Babylon Points
• Points are distributed to active stakers and finality providers based on their stake ratio
• Finality providers receive partial points based on commission ratio
The so-called Finality Provider here is actually the node operator, and they will have a commission rate to distribute points.
4/ Points calculation example:
Assuming 0.05 BTC staked and a 5% finality provider commission:
• Each block earns: 3,125 * (0.05 / 1,000) = 0.15625 points
• Staker: 0.15625 * 0.95 = 0.1484375 points/block
• Finality Provider: 0.15625 * 0.05 = 0.0078125 points/block
5/ How to participate:
• Official web app: btcstaking.babylonlabs.io
• Third-party services (staking sites, hosting solutions, APIs)
• Command Line Interface (CLI) Tools
• Liquid Staking Token (LST) Protocol (indirect participation)
6/ Babylon's three-stage plan:
I. Bitcoin Locking: At present, staking through BTC transactions
II. Bitcoin Staking Activation: Launching the Babylon PoS Chain to Achieve Cross-Chain Security
III. Multi-staking activation: allowing BTC to be staked in multiple PoS systems simultaneously
The above is a personal note, for sharing only, and does not constitute investment advice. If there are any errors, please correct them. #BTC☀ #Babylon
