PANews reported on September 29 that the community of the Bitcoin staking protocol Babylon recently released a new proposal to “drop inflation and introduce joint staking,” aiming to adjust the BABY tokenomics, including reducing inflation and introducing BTC-BABY joint staking. The proposal suggests reducing the inflation rate by about 30%, from 8% per year to 5.5% per year, with the following specific allocations: ① 1% allocated to Bitcoin (BTC) stakers, and finality providers may collect a Commission; ② 2% allocated to BABY stakers, and CometBFT validators can collect a Commission. ③ An additional 2.35% allocated to BTC stakers who stake both BTC and BABY as a joint staking reward, with every 20,000 BABY staked making 1 staked BTC eligible for the joint staking reward. ④ Due to limitations of the Cosmos SDK, finality providers and CometBFT validators cannot collect a Commission from the joint staking rewards; to compensate for this limitation, 0.075% is allocated to active finality providers based on the delegation size, and 0.075% is allocated to active CometBFT validators based on the delegation size. Once a trustless Bitcoin custody protocol is ready, the tokenomics should be re-examined and adjusted to promote the adoption of the protocol. In addition, the proposal suggests introducing BTC-BABY joint staking functionality to encourage BTC stakers to also stake BABY and actively provide security for validation and finality; the more BABY staked, the more joint staking rewards earned.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Strive Acquires 789 Bitcoin for $61.43M, Total Holdings Reach 14,557 BTC
Gate News message, April 27 — Strive purchased 789 Bitcoin for $61.43 million, with an average cost of $77,890 per BTC, according to a post by CEO Matt Cole on X. The institution now holds a total of 14,557 Bitcoin as of 2026.
The acquisition adds to Strive's existing Bitcoin reserves,
GateNews11m ago
Tether Launches Mining Development Kit (MDK), Open-Source Framework for Bitcoin Miners
Gate News message, April 27 — Tether announced the launch of Mining Development Kit (MDK), an open-source, full-stack development framework designed to provide unified control over the entire infrastructure stack for Bitcoin miners and developers.
MDK features an open modular architecture with
GateNews17m ago
Bitcoin Reserve Company OranjeBTC Adds 2 BTC to Holdings, Cumulative Position Reaches 3,725 BTC
Gate News message, April 27 — Bitcoin reserve company OranjeBTC announced the purchase of 2 BTC at an average price of approximately $77,491 per coin, spending roughly $155,000, according to the company's official statement.
The company's cumulative Bitcoin holdings now stand at 3,725 BTC with a to
GateNews21m ago
Strategy Acquires 3,273 Bitcoin for $255M, Total Holdings Reach 818,334 BTC
Gate News message, April 27 — Strategy acquired an additional 3,273 BTC for approximately $255 million at an average price of $77,906 per bitcoin between April 20 and April 26, according to an 8-K filing with the Securities and Exchange Commission.
Strategy now holds a total of 818,334 BTC worth ar
GateNews27m ago
Bitcoin Could Hit $150K–$160K by Late 2026: Van de Poppe Analysis
Crypto analyst Michael van de Poppe believes Bitcoin could reach new all-time highs between $150,000 and $160,000 by late 2026, according to his recent analysis. Bitcoin recently hit a 12-week high, experienced a pullback, and is now attempting to reclaim the $80,000 level after dropping
CryptoFrontier41m ago
