[Crypto projects](https://revain.org/projects/) › Babylon

# Babylon (BABY): how it works, supply and reviews

## In short

- **Type**: BTC staking protocol plus Babylon Genesis, a Cosmos SDK Layer 1 that coordinates staking
- **Initial distribution**: 10,000,000,000 BABY initial supply (6 decimals, base unit ubbn)
- **Risks and caveats**: Staked BTC can be partially slashed if the finality provider it is delegated to double-signs or otherwise breaks protocol rules.
- **Checked**: 31 October 2026

## Key facts

- **Ticker**: BABY
- **Official site**: [babylonlabs.io](https://babylonlabs.io/)

Key facts checked on 31 October 2026 against official sources.

## What is Babylon

Babylon is a Bitcoin staking protocol: BTC holders lock bitcoin in time-locked scripts on Bitcoin itself and delegate it to finality providers to secure proof-of-stake networks, earning rewards, without wrapping or bridging. Babylon Genesis is its Cosmos SDK Layer 1 chain, and BABY is that chain's native token.

## Network and consensus

| Parameter | Details |
|---|---|
| Type | BTC staking protocol plus Babylon Genesis, a Cosmos SDK Layer 1 that coordinates staking |
| Consensus | CometBFT with BABY-staked validators, plus BTC-staked finality providers voting on finality |
| Block time | About 10 seconds |
| Smart contracts | CosmWasm (Rust) |
| Launched | Babylon Genesis mainnet launched in April 2025 |
| BTC unbonding | About 21 days for BTC; partial unbonding is not supported |

## Supply and issuance

| Parameter | Details |
|---|---|
| Initial distribution | 10,000,000,000 BABY initial supply (6 decimals, base unit ubbn) |
| Inflation | 5.5% a year, reduced from 8% |
| Allocation | Community incentives 15%, ecosystem 18%, R&D and operations 18%, early investors 3.05 billion, team 1.5 billion, advisors 350 million BABY |
| Unlocks | Investor, team and advisor tokens unlock in 36 monthly steps from 10 May 2026 to April 2029 |
| Staking rewards | Both BTC stakers and BABY stakers receive BABY rewards |

## What BABY is used for

- Gas for transactions and smart contracts on Babylon Genesis
- Staking with validators (dual staking alongside BTC)
- On-chain governance votes; BTC stakers do not vote

## Who develops and governs Babylon

- **Developer**: Babylon Labs builds the protocol and products
- **Foundation**: Babylon Foundation stewards governance and manages community and R&D token allocations
- **Governance**: Cosmos SDK on-chain governance by BABY holders and their delegates
- **Open source**: Core chain in Go on GitHub (babylonlabs-io/babylon)

## History

| Date | Event |
|---|---|
| — | Phase 1: BTC holders stake bitcoin in self-custodial scripts on Bitcoin; over 57,000 BTC were staked. |
| April 2025 | Babylon Genesis mainnet launches. |
| 10 May 2026 | First monthly unlock of investor, team and advisor BABY under the amended schedule. |

## Security and audits

- Phase 1 staking was audited by three firms; Babylon Genesis by Coinspect, Zellic and Sherlock; later upgrades by Oak Security, Informal Systems, Coinspect and Halborn.
- Partial slashing: a share of staked BTC can be slashed if the chosen finality provider acts maliciously.
- A bug bounty runs on Sherlock.

## Security incidents

| Date | What happened | Source |
|---|---|---|
| 4 January 2025 | Key compromise: Babylon's official X account was briefly taken over and used to post phishing links; the team removed the posts and regained control. Funds returned: not stated | [x.com](https://x.com/babylonlabs_io/status/1875614849260253338) |

## Risks and caveats

- Staked BTC can be partially slashed if the finality provider it is delegated to double-signs or otherwise breaks protocol rules.
- Unbonding BTC takes about 21 days and must be done for the whole stake.
- BABY is inflationary (5.5% a year), and large investor and team allocations unlock monthly until April 2029.
- Staking is unavailable in listed restricted territories, and users in the United States cannot connect wallets to stake.

## Official links

- Website: [babylonlabs.io](https://babylonlabs.io/)
- Docs: [docs.babylonlabs.io](https://docs.babylonlabs.io/)
- Source code: [github.com/babylonlabs-io](https://github.com/babylonlabs-io)
- Blog: [babylonlabs.io/blog](https://babylonlabs.io/blog)
- Governance forum: [forum.babylon.foundation](https://forum.babylon.foundation/)
- Audits: [docs.babylonlabs.io/guides/overview/bitcoin_staking/security/audit_reports](https://docs.babylonlabs.io/guides/overview/bitcoin_staking/security/audit_reports/)

## Questions and answers

**What is Babylon?**

Babylon is a protocol that lets BTC holders stake bitcoin in self-custodial scripts on Bitcoin to secure proof-of-stake networks, coordinated by its own chain, Babylon Genesis.

**Who holds the bitcoin staked with Babylon?**

The staker keeps it in a time-locked script on Bitcoin; a covenant committee of 9 keys (6 needed) co-signs unbonding and slashing transactions.

**What is the supply of BABY?**

The initial supply is 10 billion BABY, with inflation of 5.5% a year (reduced from 8%).

**Can staked BTC be lost?**

Yes, partly: if the finality provider you delegate to acts maliciously, a portion of the stake can be slashed.

**When did Babylon Genesis launch?**

The Babylon Genesis mainnet launched in April 2025.

## Sources

- [Babylon — Home](https://babylonlabs.io/)
- [Babylon Docs — llms.txt](https://docs.babylonlabs.io/llms.txt)
- [Babylon Docs — Bitcoin staking overview](https://docs.babylonlabs.io/guides/overview/bitcoin_staking/)
- [Babylon Docs — Babylon Genesis](https://docs.babylonlabs.io/guides/overview/babylon_genesis/)
- [Babylon Docs — BABY tokenomics](https://docs.babylonlabs.io/guides/overview/babylon_genesis/baby_tokenomics/)
- [Babylon Docs — Governance](https://docs.babylonlabs.io/guides/overview/babylon_genesis/governance/)
- [Babylon Docs — Audit reports](https://docs.babylonlabs.io/guides/overview/bitcoin_staking/security/audit_reports/)
- [Babylon Docs — FAQs](https://docs.babylonlabs.io/guides/support/faqs/)
- [Babylon Docs — Covenant committee](https://docs.babylonlabs.io/developers/bitcoin_staking/networks/mainnet/covenant_committee/)
- [Babylon Docs — Geo blocking](https://docs.babylonlabs.io/stakers/btc_stakers/native_staking/geo_blocking/)
- [Babylon networks repo — mainnet global parameters](https://raw.githubusercontent.com/babylonlabs-io/networks/main/bbn-1/parameters/global-params.json)
- [Babylon Blog — 2025 roadmap](https://babylonlabs.io/blog/the-road-to-btcfi-babylons-2025-roadmap)
- [Babylon Blog — 2025, a defining year](https://babylonlabs.io/blog/2025-a-defining-year-for-babylon-and-native-bitcoin-utility)

## More in this section

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- [All Crypto projects →](https://revain.org/projects/)

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Page updated: 2026-10-31

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Source: https://revain.org/projects/babylon/