A groundbreaking development in blockchain infrastructure has arrived with the official debut of Babylon Genesis, introduced as the first Layer-1 network directly harnessing Bitcoin’s security.
Babylon Labs unveiled the full launch of its Babylon Genesis Layer-1 following an initial phase that began in August 2024. This earlier stage focused on introducing Bitcoin (BTC) staking via innovative self-custodial contracts, allowing users to retain control over their assets.
Since that preliminary rollout, the protocol has seen impressive adoption, attracting 49,678.65 BTC, valued at approximately $4.06 billion, locked into these self-custody staking contracts. Data from DeFi tracking platforms indicates Babylon now holds the second-highest Total Value Locked (TVL) among restaking protocols, trailing only EigenLayer.
This latest launch signifies the start of Phase 2 for the project. Key milestones include the full operational status of the Genesis blockchain, the activation of essential infrastructure like validator nodes and finality providers, and the introduction of the native BABY token. The BABY token is now live for transfers and staking activities.
Participants eligible for the airdrop will find BABY tokens delivered to their wallets. The project roadmap outlines a subsequent Phase 3, focused on expanding the ecosystem by bringing additional Bitcoin-Secured Networks online. This will allow other blockchains to leverage Babylon Genesis for access to BTC staking security and liquidity.
Babylon introduces a novel approach to staking Bitcoin. It empowers users to lock their BTC within self-custodial contracts, crucially ensuring they never relinquish ownership or control of their private keys. This contrasts sharply with traditional staking models that often require transferring assets to third-party contracts or custodians.
This focus on user control resonates deeply within the Bitcoin community. “Bitcoin OGs really care about custodying [their] own keys, having control over [their] own financial decisions,” noted Spencer Yang, co-founder of Fractal Bitcoin, in a recent interview.
Under Babylon’s system, if participants like validators or finality providers engage in malicious behavior, their staked BTC is subject to “slashing” – a penalty mechanism common in Proof-of-Stake systems.
The Genesis blockchain itself achieves consensus through validators staking the native BABY token, while finality providers contribute additional security by staking BTC.
Anticipation is building for a significant upcoming feature: BitVM2, envisioned as a trust-minimized bridge connecting Bitcoin and the Genesis chain. This aims to facilitate BTC movement into the Babylon ecosystem without depending on conventional multisignature arrangements, instead utilizing slashing and advanced cryptographic methods to guarantee trustless operations.