Key Takeaways
- Babylon (BABY) redefines Bitcoin's utility by enabling non-custodial BTC staking, allowing users to earn yield while maintaining full control of their Bitcoin.
- BABY token powers governance, fees, and staking rewards, driving decentralized decision-making, transaction processing, and network security via dual staking.
- Strategic Kraken partnership enhances adoption, enabling users to stake BTC directly on the exchange and receive BABY rewards—bridging Bitcoin and DeFi seamlessly.
Latest Developments
On June 19, 2025, Kraken announced a collaboration with Babylon, launching a service for users to stake Bitcoin without external wallets. Rewards are paid in BABY tokens, tying returns to Babylon’s ecosystem growth.
"BTC Staking is here—powered by Babylon, now on Kraken. Earn up to 1% APR in $BABY with weekly payouts."
👉 Explore Babylon’s staking mechanics
Understanding Babylon (BABY)
Babylon is the first Bitcoin Security Network (BSN), transforming BTC into a decentralized staking asset for Proof-of-Stake (PoS) chains like Cosmos and Ethereum L2s. Its innovations include:
Core Features
Non-Custodial BTC Staking
- Stake BTC natively on Bitcoin’s blockchain—no wrapping, bridging, or intermediaries.
Bitcoin Timestamping Protocol
- Anchors events to Bitcoin’s blockchain to prevent double-spending and enhance cross-chain security.
Dual Staking (BTC + BABY)
- Combines Bitcoin’s security with BABY token incentives, distributing 8% annual inflation rewards (4% to BTC stakers).
Founders & Backing
- Co-founders: David Tse (Stanford professor) and Fisher Yu (blockchain researcher).
- Funding: $8.8M seed (2022), $18M Series A (2023), and strategic investment from Binance Labs (2024).
BABY Tokenomics
| Function | Details |
|---|---|
| Governance | Voting on protocol upgrades and treasury allocations. |
| Transaction Fees | Paid in BABY for seamless DeFi operations. |
| Staking Rewards | Earn yield by delegating BABY to validators or staking BTC. |
Total Supply: 10 billion BABY
Allocation:
- 30.5% Private Investors
- 18% Ecosystem Development
- 15% Core Team & Community Incentives
Why Babylon Matters
Babylon unlocks Bitcoin’s potential as a cross-chain security layer, merging its robustness with DeFi’s flexibility. By retaining custody while earning yield, users gain:
- New liquidity pathways for BTC.
- Enhanced security for PoS networks.
- Governance participation via BABY tokens.
FAQs
1. How does Babylon’s BTC staking differ from traditional yield farming?
Babylon’s non-custodial staking requires no wrapped tokens or bridges, leveraging Bitcoin’s native scripts for direct participation.
2. What chains are compatible with Babylon’s security layer?
Initial partners include Cosmos Hub, Akash Network, and Ethereum L2s, with plans for broader integration.
3. How are BABY staking rewards calculated?
Rewards derive from an 8% annual inflation rate, split evenly between BTC and BABY stakers.
Final Thoughts
Babylon (BABY) pioneers a paradigm shift for Bitcoin, blending its store-of-value ethos with active DeFi utility. With Kraken’s adoption and a robust token model, it’s poised to reshape cross-chain security.
Stay updated via CoinRank’s Twitter.
### SEO Notes