What is Babylon Coin (BABY Coin)? A Beginner's Guide

Recently, the crypto world was introduced to an innovation in blockchain carried by the Babylon Project or Babylon Crypto, namely Bitcoin (BTC) staking.

After going through several roadmap phases, Babylon has now released a native token to support the performance of the Babylon ecosystem, namely BABY Coin.

Learn more about Babylon Coin (BABY COIN) in the following article.

What is Babylon Coin (BABY COIN)?

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

This network is built to harness Bitcoin’s unmatched security and use it to protect and manage other blockchain systems. 

Babylon Genesis acts as a central hub for managing both security and liquidity across future BSNs and is developed using the Cosmos SDK, allowing for strong interoperability and scalability across networks.

A New Kind of Security Model: Dual Staking

Babylon Genesis introduces a unique multi-staked consensus model based on CometBFT (previously Tendermint), where both BTC and BABY tokens play key roles:

1. Bitcoin (BTC) Staking

Bitcoin holders can stake their BTC directly from the Bitcoin network, while keeping full control over their assets, with no need for wrapping or bridging.

These BTC stakers delegate their stake to Finality Providers, who help secure Babylon’s PoS chains.

This brings Bitcoin’s strong security into active use beyond just storing value.

2. BABY Token Staking

BABY holders delegate their tokens to CometBFT validators, who are responsible for validating transactions and maintaining consensus on the Babylon Genesis chain.

This staking mechanism strengthens the Babylon network’s reliability and performance.

Read Also: How to Buy Bitcoin (BTC)

BABY Coin Utilities

Bitcoin, by design, isn’t built for smart contracts or staking, but Babylon changes that. 

BABY Coin powers this transformation by making BTC staking functional, trustless, and secure. It creates the economic and governance layer necessary for Babylon to operate smoothly.

In short, BABY Coin fuels the entire Babylon Genesis. It’s not just a token but the foundation for making Bitcoin staking a real and scalable feature for the future of decentralized finance (DeFi) and security.

BABY Coin serves as the core utility and governance token within the Babylon Protocol, which secures and non-custodializes Bitcoin staking on decentralized networks. The main utilities of Babylon Coin (BABY Coin) are:

Governance – BABY holders can propose and vote on decisions that shape the protocol’s direction.

Network Security – BABY is staked to support validator operations and maintain consensus.

Transaction Utility – BABY is used to pay for network transaction fees.

Rewards and Incentives – BABY is distributed as staking rewards to both BTC and BABY stakers, promoting active participation in the network.

Getting to Know Babylon Genesis

Babylon Genesis is the first blockchain network launched by the Babylon Project, and it serves as the foundation for a new generation of decentralized systems secured by Bitcoin. 

Think of Babylon Genesis as the starting point and control center for a broader ecosystem of Bitcoin Secured Networks (BSNs).

Babylon Genesis is a Proof-of-Stake (PoS) blockchain built using the Cosmos SDK, but it introduces a powerful innovation: it allows Bitcoin holders to stake their BTC in a non-custodial, native way, meaning they keep full control of their Bitcoin while helping to secure PoS chains.

At its core, Babylon Genesis is a coordination layer that brings Bitcoin's security into the world of PoS and interoperable blockchains.

Babylon Genesis is the launchpad for Babylon’s vision, a world where Bitcoin is no longer just digital gold, but a living force securing the decentralized web.

By introducing native BTC staking, layered with BABY governance and Cosmos-level interoperability, Babylon Genesis is pioneering a new class of blockchain infrastructure rooted in trustless security.

Babylon Coin (BABY Coin) Tokenomics

BABY Coin is the native token of the Babylon Genesis network, serving as the foundation for its economic, governance, and security systems.

The tokenomics of BABY are carefully designed to support long-term growth, incentivize community participation, and ensure the sustainability of the protocol.

Total Supply of BABY

The total supply of BABY is fixed at 10 billion tokens. Each token is divisible into 1,000,000 smaller units called ubbn, which allows for micro-level transactions and precision in economic activities on the network.

 Inflation and Staking Incentives

BABY employs an annual inflation rate of 8%. This newly minted supply is distributed evenly between:

• Bitcoin (BTC) stakers, who contribute to network security by staking their BTC in a self-custodial manner,

• And BABY stakers, who secure the Babylon Genesis chain by delegating tokens to validators.

This dual staking system ensures that both Bitcoin and BABY tokens play an active role in securing the network and are rewarded fairly.

Read Also: Babylon BTC Staking: From Concept to Reality – A Timeline

BABY Token Allocation

The 10 billion BABY tokens are distributed across six major categories:

1. Community Incentives (15%)

1.5 billion tokens are reserved to encourage user engagement and adoption. These tokens are fully unlocked at launch and managed by the Babylon Foundation.

A maximum of 400 million tokens from this pool can be staked, and any staking rewards earned are cycled back into the same pool.

2. Ecosystem Development (18%)

1.8 billion tokens support grants, bounties, partnerships, marketing, and acquisitions.

25% is unlocked at launch, and the rest unlocks gradually over three years, beginning on the network’s first anniversary.

Up to 800 million from this category may be staked, with rewards reinvested into ecosystem growth.

3. Operations & R&D (18%)

Another 1.8 billion tokens fund Babylon’s internal operations and research initiatives. It follows the same unlocking schedule as the ecosystem category.

The Babylon Foundation may reallocate tokens from this pool to other categories if needed.

Up to 800 million tokens here can be staked, and rewards return to this fund.

4. Private Investors (30.5%)

3.05 billion tokens go to early backers. These are locked for one year, with 12.5% released on the first anniversary, and the remaining tokens unlock linearly over the next three years. Staking is only allowed after the first year.

Read Also: Babylon Bitcoin Staking Mainnet

5. Team (15%)

1.5 billion tokens are allocated to the core team. Tokens follow a four-year vesting plan: a one-year cliff, then linear release over three years. Only vested tokens can be staked.

6. Advisors (3.5%)

350 million tokens are allocated to advisors. These follow custom vesting schedules similar to the team’s. Advisors can begin staking after the first year, once tokens begin to unlock.

Babylon Network Strategic Phases

The Babylon Network is rolling out in three well-planned phases. 

Each stage is designed to gradually unlock the protocol’s full capabilities, starting with Bitcoin staking and leading to a robust, interoperable security layer for Proof-of-Stake (PoS) blockchains, all while preserving Bitcoin’s self-custodial nature.

Phase 1: Bitcoin Locking

This first phase laid the groundwork by enabling Bitcoin holders to securely lock their BTC without giving up ownership or control.

Key highlights

• Self-custody mechanisms were established so users could lock BTC without wrapping or bridging.

• Security audits were performed to ensure the robustness of the process.

• A covenant committee was formed to oversee protocol safety and implementation.

This phase focused on building a secure environment for BTC to eventually be used in staking activities.

Phase 2: Babylon Genesis Launch

The second phase marked the official birth of Babylon Genesis, the first operational chain in the Babylon ecosystem. It introduced a range of essential components:

• A stable testnet (bbn-test-5) launched on January 8, 2025, to allow thorough testing.

• The mainnet went live, establishing the Babylon Genesis chain as the foundation for the network.

• Finality Providers were activated to start validating blocks and strengthening consensus.

• BTC holders who participated in Phase 1 began registering their staked Bitcoin on the Genesis chain.

• A Token Generation Event (TGE) took place, officially creating and distributing the native BABY token.

• An airdrop distributed BABY tokens to early users, contributors, and BTC stakers as a reward.

This phase made it possible for BTC to actively participate in securing the Babylon network, without being moved or tokenized, through direct staking and validation.

Phase 3: Bitcoin Multi-Staking

The final phase aims to scale Babylon’s reach by allowing Bitcoin to secure multiple PoS chains at the same time, transforming them into Bitcoin Secured Networks (BSNs).

Key goals:

• Integrate Babylon with more blockchains, letting Bitcoin enhance the security of diverse PoS ecosystems.

• Create trust-minimized bridges to allow the free movement and use of Liquid Staking Tokens (LSTs), boosting interoperability and liquidity.

• Decentralize the Finality Provider network by bringing in more independent providers, enhancing trust and resilience.

This phase will mark the full vision of Babylon: turning Bitcoin from a passive asset into a powerful force for cross-chain security.

Babylon Coin (BABY Token) Airdrop Details

As part of its effort to build a vibrant, engaged community, the Babylon Foundation launched a comprehensive airdrop program to reward its earliest participants and contributors. 

This initiative distributed a total of 600 million BABY tokens, representing 6% of the token’s total supply, to users who supported the project during its initial development phases.

Who Received BABY Tokens?

The airdrop targeted five distinct groups:

1. Phase 1 BTC Stakers

Individuals who staked their Bitcoin during the earliest stage of the Babylon network were rewarded for their early trust and participation.

2. Pioneer Pass NFT Holders

Those who held a Babylon Pioneer Pass NFT, a symbolic badge of early support, were included as recipients of token allocations.

3. Contributors to the Babylon Codebase

Developers who actively contributed to Babylon’s open-source repositories were acknowledged through a specialized allocation.

4. Phase 2 BTC Stakers

Users who continued to stake during the launch of Babylon Genesis and met specific criteria received bonus rewards.

5. Community Builders

Babylon also considered social participation, with future rounds expected to reward active members and content creators.

Read Also: Babylon Key Events - Bitcoin Staking and Timestamping

Distribution Process

Once the Babylon Genesis mainnet launched, airdropped BABY tokens were automatically sent to the eligible wallets. 

This seamless process ensured that early contributors could immediately participate in governance, staking, and utility functions on the network.

Final Note

Babylon Coin (BABY) is the main token used in Babylon Genesis, a new blockchain that gives Bitcoin a bigger role in the world of decentralized finance. 

Normally, Bitcoin is just used to store value, but Babylon changes that by allowing Bitcoin holders to stake their BTC to help secure other blockchain networks, without giving up control of their coins.

BABY Coin helps make this system work. It’s used to:

• Pay for transactions on the network

• Vote on decisions about how the system works (governance)

• Earn rewards through staking

• Help secure the network alongside Bitcoin

Babylon uses a special dual-staking system:

• Bitcoin stakers help secure the network while keeping control of their BTC

• BABY stakers support the system by staking BABY tokens and helping run the network

When Babylon Genesis launched, the team gave away 600 million BABY tokens in an airdrop to early users, BTC stakers, NFT holders, and developers to reward their early support.

In short, BABY Coin is key to joining the Babylon network, a new kind of blockchain where Bitcoin becomes more powerful, and users can earn, vote, and build without giving up control of their crypto.

Babylon $BABY will also be listed on Bitrue soon. Stay tuned for more information by registering as a Bitrue user and following Bitrue's social media accounts.

FAQ

1. What is Babylon Coin (BABY Coin)?

BABY is the native token of the Babylon Genesis blockchain. It’s used to pay for transactions, secure the network through staking, and vote on governance decisions. It works alongside Bitcoin to build a more secure and decentralized ecosystem.

2. What makes Babylon different from other blockchains?

Babylon is the first network that lets you stake Bitcoin without wrapping or bridging it. This means you can help secure blockchain networks while keeping your BTC safe in your own wallet. It combines Bitcoin’s strong security with the flexibility of Proof-of-Stake systems.

3. What is BABY used for?

BABY has several important uses:

• Paying for transaction fees

• Staking to earn rewards and secure the network

• Voting on changes to the Babylon protocol (governance)

4. Can I earn BABY tokens?

Yes! You can earn BABY by:

• Staking your Bitcoin (BTC) or BABY tokens on the Babylon network

• Participating in the community or open-source development

• Joining official airdrop programs (if eligible)

5. Is Babylon safe to use?

Yes, Babylon is designed with security as a top priority. BTC staking is self-custodial, meaning your Bitcoin stays in your control. The network has undergone multiple security audits, and its launch was carefully rolled out in phases to ensure stability.