Babylon launches Genesis, a Layer 1 blockchain designed to allow BTC holders to generate yield through staking without leaving the Bitcoin ecosystem, combining security and web3 flexibility.
Genesis positions itself as a coordination and liquidity center for Bitcoin DeFi, with a reward model shared between BTC stakers and BABY token holders, which also incorporates governance.
Babylon aims to unlock the dormant potential of inactive BTC, relying on over 250 validators (including Galaxy and Figment) to strengthen security and establish credibility in a multi-actor dynamic.
A New Era for Bitcoin-Based Decentralized Finance
With over 57,000 BTC deposited since August 2024 — roughly $4.6 billion — Babylon is accelerating its development with the launch of Genesis, its own Layer 1 blockchain. The ambition is clear: transform Bitcoin, often seen as a dormant asset, into an active driver of decentralized finance.
By launching Genesis, Babylon aims to offer BTC holders the opportunity to generate yield without leaving the Bitcoin ecosystem. Previously marginal in terms of staking, BTC could now compete with proof-of-stake (PoS) blockchains thanks to this unique protocol. Babylon combines staking with timestamping to leverage the robustness of the Bitcoin network while opening the door to more diverse use cases within the web3.
A Strategic Infrastructure: Security, Coordination, and Liquidity
Genesis is not only a staking network: it aims to become a true control plane, capable of coordinating other networks that use Bitcoin as collateral. At the same time, Genesis serves as a liquidity hub for decentralized applications, ensuring that staked BTC can circulate effectively within the DeFi ecosystem.
The rewards model is designed to be incentivizing: staking revenues will be equally distributed between staked BTC holders and native BABY token holders. This token, specific to Genesis, adds a layer of governance and incentive crucial to the network’s dynamics.
Babylon: An Answer to Bitcoin’s Immobility
Nearly two-thirds of the crypto market capitalization consists of BTC, much of which remains inactive in wallets. Babylon aims to solve this paradox by connecting this dormant value to decentralized finance. The goal is ambitious yet strategic: activate a mass of currently under-utilized capital while strengthening the security of new networks through the integrity of the Bitcoin protocol.
This deployment marks the second phase of Babylon’s development plan. The first involved building a BTC reserve as the foundation of its protocol. Today, the operational structure expands with the support of over 250 validators, known as finality providers, including major players such as Galaxy, Figment, and P2P.
A Multi-Actor Architecture in the Service of Trust
These finality providers are essential to the protocol’s functioning: they approve transactions and ensure network stability. By surrounding itself with reputable entities, Babylon seeks to consolidate its credibility and reassure potential investors about the viability of its model.
Genesis is thus part of a significant trend in the sector: the integration of Bitcoin into the staking logic, historically reserved for other blockchains. Babylon is betting on a convergence between security, yield, and interoperability, a gamble that could ultimately redefine Bitcoin’s place in the crypto economy.
