The Bitcoin staking protocol Babylon experienced a significant influx of approximately 23,000 BTC during its second staking round on Tuesday, surpassing the initial wave of participation. According to Babylon co-founder and Stanford University professor David Tse, the round, known as Cap-2, exceeded expectations, with users delegating $1.4 billion in Bitcoin to the protocol. This marked a smoother experience for network users, as Bitcoin fees did not spike during this staking event.
Babylon’s approach involves creating a two-sided marketplace centered around Bitcoin reserves. Users can lock up their Bitcoin to earn rewards, while proof-of-stake networks can utilize this capital to enhance security. The project has been focused on building up the supply side of Babylon before exploring integration with various rollups and networks like Ethereum and Solana.
In an effort to streamline the staking process and mitigate transaction costs, Babylon’s developers implemented “updated parameters” for Tuesday’s staking round. By adopting a “duration-based” approach instead of limiting the amount of Bitcoin that could be staked, the median cost per Bitcoin transaction was significantly lower compared to the initial round in August.
During the recent staking window, users had the opportunity to stake an unlimited amount of Bitcoin within a 10-block time frame, while being capped at 500 BTC per transaction. This adjustment aimed to provide a more inclusive experience for participants compared to the restrictive parameters of the first staking round.
Luxor Mining CEO Nick Hansen highlighted the importance of modifying the staking parameters to enhance accessibility and reduce transaction fees. Babylon’s long-term vision includes the development of Babylon Chain, a proof-of-stake network that will serve as a key coordination layer, allowing the locked Bitcoin to contribute to securing other blockchain networks.
Babylon has recently secured significant funding, indicating strong support for its vision. With ongoing developments and future opportunities on the horizon, Babylon is poised to make a significant impact in the crypto and NFT space.
