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Babylon Genesis Stakers Overview

Babylon Genesis implements a dual-staking model that combines the security of BTC (a PoW asset) with the efficiency of Proof-of-Stake consensus. This innovative approach allows both BTC holders and BABY token holders to participate in securing the network while earning rewards.

Quick Start​

BTC Staking Guide
Learn how to stake Bitcoin on Babylon
BABY Staking Guide
Learn how to stake BABY tokens

Two Staking Mechanisms​

1. Bitcoin (BTC) Staking​

BTC staking enables Bitcoin holders to stake their assets directly on the Bitcoin network in a self-custodial manner without wrapping or bridging. BTC stakers delegate to Finality Providers who enhance the security of the Proof-of-Stake chain.

Key Features:​

  • Self-custodial: Maintain direct control of your Bitcoin
  • Native operation: No wrapped tokens or bridges required
  • Trustless execution: No reliance on third parties
  • Slashing capability: Protocol-enforced penalties for malicious behavior
  • Multi-staking: Delegate across multiple Finality Providers and BSNs

Benefits:​

  • Earn BABY rewards: Receive a portion of the annual inflation allocated to BTC stakers
  • Secure the network: Contribute to Babylon Genesis chain's security
  • Maintain Bitcoin ownership: Your BTC remains on the Bitcoin blockchain
  • Fast unbonding: ~2 days compared to typical 21 days in most PoS chains

2. BABY Token Staking​

BABY staking is a native staking mechanism that secures the Babylon Genesis chain. BABY token holders delegate to chain validators to accrue inflationary rewards proportional to their stake.

Key Features:​

  • Epoch-based staking: Delayed execution queue for enhanced security
  • Fast unbonding: ~2 days via Bitcoin timestamping protocol
  • Governance participation: Voting power in chain governance
  • Partial slashing: 5% slashing for double-signing violations

Benefits:​

  • Earn rewards: Receive a portion of the annual inflation allocated to BABY stakers
  • Secure the network: Contribute to the Babylon Genesis chain's security and decentralization
  • Governance rights: Participate in shaping the future of the network
  • Fast unbonding: Significantly reduced unbonding period

How They Work Together​

The dual-staking model creates a robust security framework:

Security Model​

  • BTC stakers delegate to Finality Providers who enhance PoS security
  • BABY stakers delegate to validators who oversee block production and consensus
  • Both mechanisms contribute to securing the Babylon Genesis chain

Reward Distribution​

The annual inflation (8%) is distributed among:

  • BTC stakers: 4% of annual inflation
  • BABY stakers: 4% of annual inflation

Governance​

  • BABY stakers participate in governance with voting power
  • BTC stakers do not participate in governance but receive rewards

Risk Considerations​

BTC Staking Risks​

  • Slashing risk: 0.1% maximum penalty for protocol violations
  • Finality Provider risk: Choose reliable Finality Providers
  • Market volatility: BTC price fluctuations affect staking value

BABY Staking Risks​

  • Slashing risk: 5% penalty for validator double-signing
  • Validator risk: Choose reliable validators with good track records
  • Market volatility: BABY price fluctuations affect staking value

Advanced Features​

Fast Unbonding​

Both BTC and BABY staking benefit from Babylon's Bitcoin Timestamping protocol:

  • ~2 days unbonding vs typical 21 days
  • Bitcoin checkpoint verification ensures security
  • Automatic token release once confirmations are met

Multi-Staking (BTC)​

BTC stakers can delegate across multiple Finality Providers and BSNs simultaneously:

  • Diversify risk across multiple networks
  • Maximize rewards from multiple sources
  • Maintain security isolation between networks

Next Steps​

This dual-staking model represents the foundation of Babylon's Bitcoin Secured Network, combining the robustness of Bitcoin with the efficiency of Proof of Stake consensus to create a secure, decentralized, and rewarding staking ecosystem.