Babylon protocol introduction: Can Bitcoin protect PoS?

Babylon is a protocol born to solve the security of PoS chains, introducing the strong security of the BTC network for PoS systems through bridgeless Bitcoin collateral and timestamp mechanisms, providing an external defense layer for PoS systems.

The protocol is built on the Cosmos SDK and supports cross-chain expansion, aiming to construct a unified framework for sharing Bitcoin security across PoS chains. Through this protocol, Bitcoin is not only a store of value but also upgrades to a provider of ‘Security-as-a-Service’.

The two pillars of Babylon: Staking and Checkpointing

BTC Staking Without Custody

Babylon’s biggest breakthrough is the Non-Custodial Bitcoin Staking mechanism. This mechanism is based on the UTXO model and time-lock scripts of the BTC network, allowing users to stake assets in the Babylon protocol without leaving the BTC network or using bridges.

The staking method is secure, trustless, and supports a Slashing mechanism, which enhances chain security and expands the utility of BTC.

Bitcoin-Powered Checkpointing

PoS chains can upload their block information to the Bitcoin chain through the relay provided by Babylon, generating an immutable timestamp. This process is called Checkpointing, which can prevent attacks such as Long-Range Attack and History Rewriting.

This mechanism effectively enhances the finality guarantee of the PoS chain, forming a hybrid security model of “Bitcoin consensus + PoS operation”.

BABY Token Economic Model Analysis

Image:https://babylon.foundation/blogs/baby-tokenomics-guide

BABY is the utility token of the Babylon protocol, with the following main uses:

• Network fee payment: BABY is used to pay for operating expenses within the Babylon protocol.
• Governance participation: Holders can participate in proposal voting and protocol changes.
• Incentive mechanism: Distribute profits to users who pledge BTC and BABY.
• Incentive Finality Providers: Nodes that support providing timestamp services for the network operation.

Allocation Structure

• Ecological construction and community incentives: a total of 33%
• Technology, team, and advisors: 36.5%, with a lock-up release mechanism

• Private Placement: 30.5%, 4-year lock-up period to participate in governance

  The model aims to maintain a balance between early growth, long-term incentives, and community governance.

Babylon Market Performance

On May 14, 2025, the price of BABY is around 0.1 US dollars, with a recent significant increase, please trade cautiously and be aware of the risks.

Image:https://www.gate.io/trade/BABY_USDT

Investor background and ecological layout

Babylon has completed a total of over 80 million US dollars in strategic financing since its inception, with investors including Paradigm, Polychain Capital, HashKey and other top funds.

Currently, Babylon has deployed multiple cross-chain PoS integration tests, aiming to support mainstream ecosystems such as Cosmos, Polygon, Avalanche, and has established strategic partnerships with EigenLayer, Near, Celestia, promoting a secure and interconnected multi-chain environment.

Future Plan

BABY is expected to advance the phased upgrade of the mainnet in the second quarter of 2025:

• Phase-2: Introducing more validators and timestamp verification chain support
• Phase-3: Fully open BTC collateral market and third-party integration interface

In the future, Babylon will serve as an important gateway for Bitcoin to enter the “multi-chain service layer” and establish the standard protocol for the BTC security layer.

Summary: BTC’s new role in security

The Babylon project reshapes the role of Bitcoin in the Web3 world, transforming it from a “passive asset” into an “active security provider.” Through native staking and cross-chain timestamp mechanisms, Babylon expands the economic and technical boundaries of BTC.