Bitcoin (BTC) initiative Babylon has unveiled its layer-1 blockchain called “Genesis,” which marks a significant advancement in the development of its staking protocol. This new protocol has already amassed over $4 billion in total value locked (TVL).
Babylon enables BTC holders to generate yield on their assets, which are utilized to enhance security and liquidity for proof-of-stake networks. Given that Bitcoin constitutes nearly two-thirds of the cryptocurrency market with a substantial amount idling in wallets, Babylon is working to redirect these funds into the broader cryptocurrency ecosystem.
Genesis is designed to function as a BTC staking network, leveraging staking and timestamping to utilize Bitcoin’s security while also serving as a coordination hub for other networks that stake Bitcoin and offer liquidity for decentralized applications.
Staking rewards will be equally distributed between BTC stakers and those who stake BABY, which is Genesis’s native token.
Staking involves cryptocurrency users contributing their tokens to a network to support its ongoing operations and earn returns, akin to earning interest in a traditional savings account. Although staking is crucial for most blockchains, it has been notably absent in Bitcoin—something Babylon aims to rectify.
The introduction of Genesis signifies the second phase of Babylon’s strategic roadmap, with the initial phase focused on creating a BTC kitty as the foundation for its staking system. Since launching in August last year, more than 57,000 BTC—amounting to $4.6 billion—have been staked on Babylon.
The protocol has the backing of over 250 “finality providers,” who are responsible for validating transactions to ensure the smooth operation of the network. Notable supporters include Galaxy, Figment, and P2P, as reported in an announcement circulated on Thursday.