What is Babylon (BABY)?
Babylon is a decentralized protocol that allows users to self-manage Bitcoin staking, enhancing security and liquidity for the project. It enables holders to stake directly on the Bitcoin network to earn rewards without giving up control of their assets.
Currently, Babylon is fundamentally similar to the Panama Canal, connecting the Atlantic and Pacific Oceans, creating value flows and charging intermediary fees. The future of Babylon not only connects Bitcoin and altcoins but also holds great value on-chain and develops a potential ecosystem (this is the expectation set by the project).
Babylon Genesis is the first Bitcoin Secure Network (BSN) that leverages Bitcoin's security and acts as a security control plane and liquidity coordination for future BSNs. Built on the Cosmos SDK framework with significant improvements to enhance interoperability and PoS security.
Highlights of the Babylon project
Since the launch of Phase 1 of the Babylon Mainnet in August 2024, over 57,000 bitcoins have been staked through the Babylon protocol, locked in self-custody staking contracts on the Bitcoin chain.
The current total TVL of BTC is 49448.53 BTC ($4.03 billion) and registered BTC TVL has reached 275.88 BTC ($22.48 million)
The ecosystem of projects is developing strongly integrating the Babylon protocol, including: Liquidity staking protocol, Wallets and custodial units, Secure Bitcoin Network (BSN), including both L1 and L2 networks, and Finality Providers.
Babylon Genesis is an independent Layer 1 with advanced security features and will also serve as a control plane as well as a liquidity hub for other Bitcoin-secured Networks (BSN), enabling them to integrate with the security and liquidity of Bitcoin.
Existing products of Babylon
The Babylon protocol is being rolled out in three phases:
Phase 1 (Launch):
Focusing on building Bitcoin staking supply, with over 57,000 BTC staked from 140.02K participants.
The ecosystem is developing strongly, including projects integrating the Babylon protocol such as:
Liquid Staking Protocol
Wallets and custodians
Secure Bitcoin Network (BSN)
Finality Providers.
Phase 2 (Launching Babylon Genesis – the first BSN):
Babylon Genesis will implement the main functions:
DEX (decentralized exchange)
Restaking (re-staking assets)
Vault (asset storage)
Directly mint BABY LST (Liquid Staking Token) on-chain.
Users can transfer BTC LST to Babylon Genesis to participate in BTCFi (Bitcoin Finance) while still benefiting from Bitcoin's security.
Phase 3 (Expanding the BSN ecosystem):
Babylon Genesis will become a versatile ecosystem, with:
Many other BSNs are integrated.
EVM support to increase liquidity, especially for BTC LST.
Planned products from partners:
DEX, minting LST, BTC lending protocol, restaking, incentive market, vault, and Genesis Reward Hub.
Technical infrastructure
Consensus mechanism:
Babylon Genesis is the first blockchain secured by Bitcoin staking, combining:
PoS (Proof-of-Stake) based on CometBFT.
Dual-quorum staking:
100 CometBFT validators process consensus.
60 Finality Providers sign confirmations with Bitcoin staking.
Governance process:
Using Cosmos SDK governance modules, allowing:
Holders of the BABY token propose, vote, and update the network.
Transparent and decentralized, with off-chain discussions on a structured forum.
Balancing between decision-making speed and attack resistance.
Backers of Babylon
Babylon, from the moment of deployment and development, is supported by leading investment firms.
Overview of Babylon's Tokenomics & Airdrop
Tokenomics Highlights
51% of tokens are allocated for the community, building the ecosystem, R&D, and operations.
49% for investors, team, and advisors.
Long-term unlock: 4 years, no unlock in the first year.
No staking tokens locked in the first year → Higher staking rewards for the community.
8% inflation in the first year: 4% for BTC stakers, 4% for BABY stakers.
Airdrop Highlights
6% airdrop for early users:
4% upon chain launch.
2% additional rewards if stakers switch to Phase-2 and hold stake for at least 100 days.
Censorship-resistant: All Phase-1 stakes receive airdrop, including overflow.
Verifiable: Eligible BABY addresses can be verified cryptographically.
Fee reimbursement: Stake Cap-1 receives airdrop high to offset Bitcoin transaction fees.
No need to claim: Tokens are transferred directly.
Tokenomics Details
Initial total supply: 10B BABY
15%: Community
18%: Ecosystem building
18%: R&D & operations
30.5%: Investors
15%: Team
3.5%: Advisors
Unlocking:
Unrestricted community token.
3 years unlock for the ecosystem & R&D.
4 years unlock for investors, team & advisors.
Airdrop Details
30M BABY for Phase-1 stakers:
Cap-1: 550 BABY/stake
Cap-2: 150 BABY/stake
Cap-3: 100 BABY/stake
335M BABY staking rewards for Phase-1.
200M BABY forward rewards for Phase-2.
30M BABY for 100K Pioneer Pass NFTs (300 BABY/NFT).
5M BABY for GitHub developers.
Details on the BABY HODLer airdrop
Token name: Babylon (BABY)
Total Genesis token supply: 10,000,000,000 BABY
Maximum token supply: Unlimited (8% annual inflation in the first year. Inflation rate from the second year onward depends on governance proposals.)
HODLer Airdrop token reward: 75,000,000 BABY (0.75% of total Genesis token supply)
121,600,000 BABY will be allocated for other marketing campaigns (in batches) 6 months after listing. Details will be shown in a separate announcement.
Total token supply at listing on Binance: 10,015,636,491 BABY
Circulating supply at listing on Binance: 2,294,036,491 BABY (22.90% of total token supply)
Users who have registered their BNB for Simple Earn products (Flexible and/or Locked) and/or On-Chain Yields from 00:00 on March 7, 2025 (UTC) to 23:59 on March 12, 2025 (UTC) will receive the airdrop distribution.
What is the Binance HODLer Airdrop?
Binance's HODLer Airdrop rewards will be retroactive for BNB holders based on historical snapshots of their BNB balances in Simple Earn Flexible or Locked products. Those who subscribe to Simple Earn automatically qualify for token rewards without any additional actions.
Benefits of HODLer Airdrops:
Passive rewards: Earn tokens based on the amount of BNB held in the past without active participation.
Multi-reward eligibility: Qualify for Launchpool, Megadrop, and HODLer Airdrops simultaneously.
Convenient: Snapshots are taken hourly, ensuring fair distribution.
How to receive HODLer Airdrop rewards in the future
Go to the [EARN] section on Binance.
Search for BNB and subscribe to Simple Earn Flexible or Locked products.
Binance will use historical snapshots of user balances to calculate rewards, which will be distributed to eligible Spot Wallets within 24 hours after the airdrop announcement.
Summary
Babylon (Baby) is a project that I consider quite independent and interesting as it can leverage the fact that Bitcoin holders can enhance security while providing liquidity and still earn rewards to increase profits. Maximizes benefits from holding Bitcoin. However, attention should be paid to the volatility of the token, especially when the project is newly launched and developing. The value of the token can be significantly affected by the market and external factors.
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