Phase 1: Bitcoin Locking
In the initial phase, Babylon will focus on achieving an initial Total Value Locked (TVL) of Bitcoins. This is a crucial milestone as it will demonstrate the network's ability to secure Bitcoin and provide a foundation for future growth.
Features in this phase are:
- self-custodial Bitcoin locking
- multi-sig covenant committee formed
- points accumulated for stakers
In this phase, there is only the Bitcoin chain supported. There are no slashing risks, and there are no staking rewards either.
Institutions, DeFi protocols, and individual BTC holders can lock their Bitcoin in three progressive staking caps.
| Parameter | Cap 1 | Cap 2 | Cap 3 |
|---|---|---|---|
| Capped by | 1000 BTC (amount based) | 10 Bitcoin Blocks/one hour (duration based) | 1000 Bitcoin Blocks/one week (duration based) |
| Min per stake | 0.005 BTC | 0.05 BTC | 0.05 BTC |
| Max per stake | 0.05 BTC | 0.5 BTC | 0.5 BTC |
| Unbonding fee | 0.0016 BTC | 0.00032 BTC | 0.00032 BTC (50% lower) |
| Points allocation | - | 3,125 to 10,000 points per BTC block | First 300 BTC blocks: 100,000 points per block Remaining 700 BTC blocks: 21,000 points per block |
The progressive caps serve several benefits related to security, market stability, technical validation, and managing the risk of the network.