How to Stake BABY Coin on Babylon: Earn Passive Rewards

In the ever-evolving world of blockchain, Babylon stands out by introducing a revolutionary security model that merges the unmatched strength of Bitcoin with the efficiency of Proof-of-Stake (PoS) systems.

At the heart of this innovation is the Babylon Coin (BABY)—the native cryptocurrency of Babylon Genesis, the first-ever Bitcoin Secured Network (BSN).

This article explores how you can stake BABY tokens on Babylon to earn passive rewards while contributing to a more secure decentralized ecosystem.

What Is Babylon?

Babylon is a suite of security-sharing protocols that extend Bitcoin’s economic security to other decentralized networks. Its latest innovation, the Bitcoin Staking Protocol, enables Bitcoin holders to stake their BTC in a fully trustless and self-custodial way—no wrapping or bridging required.

Babylon Genesis, developed using the Cosmos SDK, is the first chain to implement this model. It acts as a central security and liquidity hub for future BSNs, offering interoperability and scalability across ecosystems.

It introduces a multi-staked consensus model built on CometBFT (formerly Tendermint), integrating both Bitcoin (BTC) staking and BABY token staking.

Read Also: Babylon Chain Tokenomics and Token Utility: Powering the Future of Bitcoin-Backed Security

Understanding BABY Token Staking

While BTC staking on Babylon brings Bitcoin's security to PoS chains via Finality Providers, BABY staking secures the Babylon Genesis chain itself. BABY holders can delegate their tokens to network validators, who maintain consensus and validate transactions.

In return, stakers earn inflationary rewards, strengthen the network, and gain voting rights in Babylon’s governance system.

Key Benefits of Staking BABY

1. Earn Passive Rewards

Stakers receive a portion of the annual inflation distributed among BABY holders proportional to their delegated amount.

2. Enhance Network Security

By staking, you actively contribute to the Babylon Genesis chain’s decentralization and reliability.

3. Fast Unbonding Period

Unlike the usual 21-day lockup found in many PoS systems, Babylon enables a fast 2-day unbonding process, thanks to its unique Bitcoin Timestamping protocol.

4. Participate in Governance

BABY staking grants you voting rights to shape Babylon's future policies and upgrades.

How to Stake BABY Tokens: Step-by-Step

1. Get a Compatible Wallet

Choose a wallet that supports BABY staking. Popular choices include:

- Keplr Wallet

- Cosmostation

- OKX Wallet

Make sure your wallet is connected to the Babylon Genesis chain.

2. Acquire BABY Tokens

Buy BABY from a supported exchange and transfer it to your staking-enabled wallet.

3. Delegate to a Validator

Through the staking interface of your wallet:

- Select a validator from the list of active CometBFT validators.

- Enter the amount of BABY you want to stake.

- Confirm the transaction.

Note: Your tokens remain liquid in your wallet until the end of the current epoch (a staking cycle), after which your stake becomes active.

4. Earn Rewards and Monitor Performance

Once your stake is live, you’ll start earning rewards. You can check your earnings and validator performance through blockchain explorers and wallet dashboards.

Read Also: Learn Babylon Litepaper Like a Pro: Bitcoin Staking Explained

How Unbonding Works

Babylon uses the Bitcoin Timestamping Protocol to ensure secure and rapid unbonding:

1. Submit Unbonding Request: Initiate unbonding via your wallet; your request is queued until the current epoch ends.

2. Checkpoint Confirmation: The Babylon chain commits a cryptographic hash to the Bitcoin blockchain. After 300 Bitcoin blocks (~2 days) confirm this checkpoint, the request is validated.

3. Token Release: Once confirmed, your BABY tokens are automatically released, becoming fully liquid and transferable with no restrictions.

Risks and Slashing

While staking is generally safe, it does carry certain risks:

1. Slashing Penalty: Validators who double-sign blocks are penalized. If this happens, 5% of delegated BABY is slashed, while 95% is safely returned to you.

2. Transparency and Protection: All slashing events are recorded on-chain, and delegators can view a validator’s history before staking. Partial slashing mechanisms are designed to protect you from catastrophic losses.

Babylon’s Dual-Staking Ecosystem

Staking BABY works hand-in-hand with Bitcoin staking:

This dual system forms the core of Babylon’s Bitcoin Secured Network, combining Bitcoin’s resilience with PoS efficiency.

Conclusion: Babylon Launch on Bitrue Soon

Staking BABY on Babylon is more than just a way to earn passive income—it’s a contribution to a future where Bitcoin’s security extends far beyond its own network. 

With quick unbonding, real governance power, and a secure ecosystem, BABY staking is an attractive option for crypto holders who believe in decentralized security.

Soon, the $BABY token will also be listed on Bitrue. There will be many interesting programs that will give you big profits of up to 150,000 BABY tokens!

You can directly visit the Bitrue website to find out the latest information about Babylon listing.

FAQ

1. What is BABY coin?
BABY is the native cryptocurrency of Babylon Genesis, the first-ever Bitcoin Secured Network (BSN). It plays a key role in securing the Babylon Genesis chain through staking and governance participation.

2. What is Babylon?
Babylon is a set of security-sharing protocols designed to extend Bitcoin’s economic security to other decentralized systems. It introduces Bitcoin staking and BABY token staking to enhance blockchain security, all within a Cosmos SDK-based ecosystem.

3. How does BABY staking work?
BABY holders can delegate their tokens to CometBFT validators, who are responsible for maintaining consensus on the Babylon Genesis chain. In return, delegators earn inflationary rewards, gain governance rights, and contribute to network security.

4. When do my tokens start earning rewards?
Your tokens begin earning rewards after the current epoch ends, at which point your stake becomes active.

5. Do BABY stakers have governance rights?
Yes. BABY stakers can vote on governance proposals, helping shape upgrades and future directions of the Babylon network.