Babylon Launches Layer 1 'Genesis' to Enhance Its BTC Yield Platform, With Over $4B BTC Locked

Key Points:

• Bitcoin project Babylon has introduced its Layer-1 blockchain, "Genesis," marking the next phase of developing its BTC staking protocol.

• Genesis will function as a BTC staking network, leveraging staking and timestamping to utilize Bitcoin's security.

• Since its launch in August last year, over 57,000 BTC (worth $4.6 billion) have been staked on Babylon.

Bitcoin (BTC) project Babylon has launched its Layer-1 blockchain "Genesis" as part of the next step in developing its staking protocol, which has already attracted over $4 billion in total-value locked (TVL).

Babylon enables BTC holders to earn yield on their assets, which are utilized to provide security and liquidity for proof-of-stake networks. Bitcoin accounts for nearly two-thirds of the total crypto ecosystem, with much of it sitting idle in users' wallets. Babylon aims to redirect this value into the broader crypto ecosystem.

Genesis will operate as a BTC staking network, employing staking and timestamping to tap into Bitcoin's security. Additionally, it will act as a control plane to manage other networks that stake Bitcoin and serve as a liquidity hub for decentralized applications.

Staking rewards will be split equally, with 50% allocated to BTC stakers and 50% to those staking BABY, the native token of Genesis.

Staking is when crypto users contribute their tokens to a network to support its operations in exchange for rewards, similar to earning interest on a bank account. While staking is a core component of most blockchains, it has been largely absent in Bitcoin—a gap that Babylon aims to fill.

The Genesis launch marks the second phase of Babylon’s development, following the first phase, which focused on creating a BTC reserve as the base for its staking protocol. Since its debut in August of last year, over 57,000 BTC (equivalent to $4.6 billion) has been staked on Babylon.

The protocol is also backed by more than 250 "finality providers" who validate transactions and ensure the network runs smoothly. Among these providers are Galaxy, Figment, and P2P, as highlighted in an announcement sent on Thursday.