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
Bhutan offloads another $37M in Bitcoin as sovereign wallet shrinks
Bhutan has significantly reduced its Bitcoin holdings, moving over $36 million worth in March alone. The country’s wallet now holds about 4,453 BTC, down from over 13,000 BTC in October 2024, as part of its economic strategy.
Cointelegraph15m ago
Bitcoin nears $72,000 as rising open interest signals growing leverage in choppy market
Bitcoin rose 1.2% following gains in U.S. equities, driven by oil prices dropping and geopolitical tensions. The crypto market shows resilience, with significant increases in futures open interest and altcoins outperforming Bitcoin as traders shift positions ahead of market movements.
CoinDesk16m ago
Cryptocurrency News Today (March 25) | Robinhood Plans to Repurchase $1.5 Billion in Stock; Ireland Seizes $35 Million in Bitcoin
This article summarizes cryptocurrency news from March 25, 2026, focusing on the latest Bitcoin updates, Ethereum upgrades, Dogecoin trends, real-time crypto prices, and price predictions. Today's major events in the Web3 sector include:
1. Irish law enforcement cracks convicted drug dealer's Bitcoin wallet, seizing 500 BTC worth $35 million;
2. Robinhood launches $1.5 billion stock buyback plan as stock price falls 39% in 2026;
3. Elon Musk pauses X platform creator revenue reform, keeping crypto content incentives stable.
GateNews26m ago
BTC if continues to rise to $72,100, the second largest on-chain short position of 46.4 million will face partial liquidation
Hyperinsight data shows that a bearish crypto whale increased their BTC short positions by approximately 150 BTC over the past hour, bringing their total position size to $46.6 million. The whale currently has an unrealized loss of $520,000. The whale has set stop-loss and take-profit orders to manage market volatility.
BlockBeatNews28m ago
