Babylon (BABY)

Bitcoin Staking

Babylon lets Bitcoin holders stake their BTC directly to secure proof-of-stake (PoS) blockchains. This means users can earn rewards by locking their bitcoins to help validate other networks without needing to wrap, peg, or bridge their BTC. Staking is done while keeping full control of the coins in their own wallets.

Network Security

Babylon uses Bitcoin’s strong security to protect PoS chains, making these networks more resistant to attacks. It applies advanced cryptography and Bitcoin timestamping to ensure secure and trust-minimized staking.

Liquidity and Rewards

Users can request unbonding (withdraw their staked BTC) anytime, maintaining liquidity. Babylon also supports multi-staking, allowing one BTC stake to earn rewards from multiple networks.

Ecosystem and Community

Babylon connects Bitcoin holders with Bitcoin Supercharged Networks (BSNs), creating a large community focused on expanding Bitcoin’s use cases beyond just storing and transferring value. It aims to build a marketplace where BTC holders find new ways to use their coins.

Governance and Development

The Babylon token is expected to power governance of the protocol, letting users participate in decisions. The project is open source and supported by many partners and investors who believe in expanding Bitcoin’s utility.

For more details, visit Babylon’s official site.

Pros of Babylon

• Allows Bitcoin holders to stake BTC non-custodially, meaning users keep control of their assets.
• Enables earning rewards by helping secure Proof-of-Stake (PoS) networks.
• Uses Bitcoin’s timestamping to improve security and reduce risks like forks or long-range attacks.
• Supports network stability and enhances the overall blockchain ecosystem.
• Quick unbonding process to regain access to staked BTC.
• Built with Cosmos SDK, which helps reduce costs and improve efficiency.
• Strong community support and backing from top-tier investors.

Cons of Babylon

• Staking requires locking up funds temporarily, which can limit liquidity.
• Fees may apply for staking and unbonding transactions.
• Some technical knowledge is needed to set up and maintain staking.
• As a newer protocol, it may have evolving parameters and require users to stay updated.

Babylon offers a unique way to put Bitcoin to work by securing other blockchains while keeping user control intact.

Founders

Babylon was co-founded by David Tse, a Stanford University professor who serves as CEO, and Fisher Yu, who is the CTO.

Background

David Tse is an engineering professor at Stanford, and Fisher Yu is known for his work in blockchain technology, including founding EigenLayer. Together, they started Babylon to bring Bitcoin's security to proof-of-stake blockchains.

Lead Investors

Paradigm led the $70 million funding round for Babylon. Other key investors in this round include Polychain Capital, Bullish Capital, and HashKey Capital.

Previous Investors

In December 2023, Babylon raised $18 million from investors such as Hack VC, Framework Ventures, OKX Ventures, and Polygon Ventures.

Additional Support

Binance Labs has also invested in Babylon, supporting its Bitcoin staking protocol and advancement in the crypto space.

Halal Status of Babylon

• Yes or No: There is no clear, widely recognized ruling specifically about Babylon being halal or not.
• Reason: The halal status of any crypto token depends on whether it follows Islamic finance principles like avoiding interest (riba), excessive uncertainty (gharar), and unethical activities. Since Babylon is a newer project and not specifically listed in major halal crypto guides, its status is uncertain.
• General Guidance: Muslims are encouraged to review the project’s purpose, use, and compliance with Islamic law or consult knowledgeable scholars before deciding.

If you want to check if a crypto token is halal, look for projects that have been screened by Islamic finance experts or appear on trusted halal crypto lists.