Babylon Bitcoin Staking Protocol is an innovative platform designed specifically for Bitcoin holders, aiming to connect Bitcoin holders with the security needs of PoS (Proof-of-Stake) systems, such as PoS blockchain, L2 protocol , data availability layer and oracle machine, etc. The protocol’s rollout will take place in three phases and emphasizes that Bitcoin staking can be achieved without the need for a trusted intermediary. The following is a detailed introduction to the mainnet launch, especially the first phase of planning.
Phased launch of Babylon Bitcoin staking
According to the announcement, Babylon Bitcoin Staking will be launched in three phases, with each phase gradually expanding the ability of Bitcoin staking to participate in the PoS system.
Phase One: Bitcoin Lockup
At this stage, Bitcoin holders begin the staking process by submitting Bitcoin staking transactions through the Bitcoin blockchain.
These transactions lock designated Bitcoins into a secure, self-hosted Bitcoin staking script and identify the public key of the finality provider to whom PoS voting rights are delegated.
It is worth noting that if the staker also possesses the finality provider’s private key, this delegation will be considered a self-delegation. Whether self-delegated or not, staked Bitcoins are never transferred to the finality provider, only voting rights are granted to it. This move seems to be a norm to prevent self-enrichment.
Phase 2: Bitcoin staking starts
In the second phase, the Babylon PoS chain will be launched, which will utilize the Bitcoin locked in the first phase for economic security. Finality providers with sufficient delegation volume will participate in the consensus process of the Babylon PoS chain to determine the finality of their blocks. In addition, this chain will launch the Bitcoin timestamp protocol to achieve cross-chain time synchronization to ensure the security of Bitcoin pledges.
Phase 3: Bitcoin multi-pledge launch
In the third phase, the Babylon Bitcoin staking protocol will evolve into a shared security market, allowing any PoS system to utilize Bitcoin staking to improve security. Bitcoin holders will be able to stake the same Bitcoin in multiple PoS systems at the same time to obtain multi-staking rewards, and the Babylon PoS chain will serve as a control platform to coordinate the operation of Bitcoin staking in all PoS systems.
Phase 1 details
Staking time limit and unlocking at any time
In the first phase, each staking has a maximum staking time set at 64,000 Bitcoin blocks (approximately 15 months). Upon expiration, the staked Bitcoins will automatically be unlocked and available for withdrawal. However, stakers can always choose to unlock early, in which case there will be an unlocking period of 1008 Bitcoin blocks (approximately 7 days) after which the stake will be unlocked and available for withdrawal.
Type of transaction involved
In the first stage, all transactions are Bitcoin transactions, mainly including:
– Staking transaction: Bitcoin holders generate a pledge transaction and submit it to the Bitcoin blockchain. – Unlocking and Withdrawal Transactions: If stakers wish to withdraw their pledge before expiration, they need to generate an unlocking transaction and then submit a withdrawal transaction. – Automatic expiration and withdrawal: The pledge will automatically expire after more than 64,000 blocks, and the staker will generate an withdrawal transaction to withdraw the expired pledge.
In the first phase, stakers will not sign any slashing consent form for the PoS system, so the staked Bitcoin will not face the risk of slashing.
Initial pledge limit
For security reasons, an initial pledge limit of 1,000 Bitcoins will be set in the first phase, which will be relaxed as the process progresses. Staking is on a first-come, first-served basis, and pledges exceeding the upper limit will be considered overflow and require unlocking and withdrawal. There is no queuing mechanism, so overflow pledges will need to be resubmitted even if the cap is later reopened.
Single pledge limit
The minimum amount per stake is 0.005 BTC to ensure unlocking and withdrawal transaction fees are covered. The maximum amount is 0.05 Bitcoin, which is designed to encourage more participants rather than allowing a few large players to monopolize staking resources.
Points system and commission
There will be no direct staking rewards in the first phase because the PoS chain has not been launched yet. In its place is a points system that tracks and distributes points based on stakers’ activity. Points are allocated proportionally to each active staker, and points will be divided between stakers and finality providers in proportion to the commission.
Babylon has also made a statement that points have no monetary value and cannot be converted into any form of digital assets, currency or other items of value.
protocol committee
In the first phase, the protocol committee ensures the security of the unlocking process through a multi-signature mechanism. The committee cannot steal a staker’s Bitcoins, nor can it prevent the stake from being unlocked upon expiration.
Babylon staking method
Users can participate in staking in the following ways:
– Official web app: Babylon offers an official staking app that lists verified finality providers for stakers to choose from. – Third-party services: including third-party staking sites, hosting solutions, and APIs. – Command-Line Interface (CLI) tools: suitable for technical users.
In addition, the LST (Liquid Staking Token) protocol will also participate in the Babylon Bitcoin staking main network, but the staking and points of the LST protocol are handled by the LST protocol itself, and participants should investigate on their own and act with caution.
Eligibility restrictions
Staking prohibits users from certain regions and countries from participating, including the United States, Canada, Australia, and mainland China. In addition, if the pledger is on any sanctioned list, he will not be able to participate in staking activities.
security audit
Babylon said its Phase 1 code has been evaluated by multiple auditors, including Coinspect, Zellic and Cantina.
As the most popular Bitcoin staking protocol in recent times, the launch of the first phase of Babylon has also rekindled new expectations in the community.
This article Babylon Bitcoin Staking Mainnet Launch: Detailed Explanation of the First Phase first appeared on Chain News ABMedia.
