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Babylon Launches Innovative Bitcoin Staking Program

Cryptodnes2024/08/23 22:45
By:Cryptodnes

Babylon has launched an innovative Bitcoin staking program that allows users to stake BTC while retaining custody, marking a significant development in the crypto sector.

This initiative allows participants to stack BTC by locking them into a self-custody script on the Bitcoin blockchain, delegating the right to vote to the finality provider instead of transferring the actual BTC. This allows users to participate in the PoS consensus of other blockchains such as Ethereum and Avalanche , potentially securing $120 billion if 10% of Bitcoin’s supply is staked.

Babylon’s protocol includes a 15-month lock-in, with limits set between $0.005 BTC and $0.05 to ensure large-scale participation and prevent large holders from dominating.

Although there are no direct staking rewards in the initial phase, Babylon uses a points system to track and reward user activity, although US, UK and EU users may face restrictions due to regulatory concerns.

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The program quickly reached its initial cap of 1,000 BTC, reflecting strong market interest and setting the stage for future expansions. The project has drawn comparisons to EigenLayer and generated speculation about potential airdrop events, though Babylon has warned that their point system may not translate into tokens or other assets.

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