Babylon

Babylon (BABY) is the native token of the Babylon blockchain, a proof-of-stake Layer 1 network. The network is designed to integrate Bitcoin staking as a mechanism for providing security to decentralised systems. BABY is used within the Babylon protocol to enable operations, support governance, and facilitate a dual-token staking model involving both BABY and Bitcoin.

The token is issued on the Babylon chain, which uses a consensus protocol that combines BABY staking with Bitcoin timestamping. This structure allows users to lock Bitcoin in a self-custodial way and contribute to the security of other proof-of-stake blockchains without transferring or wrapping their Bitcoin.

BABY has three primary functions in the Babylon ecosystem:

• Transaction Fees: It serves as the gas token for paying fees on the Babylon chain.

• Governance: BABY holders can vote on protocol upgrades and other on-chain governance decisions.

• Staking and Security: BABY is used in conjunction with Bitcoin in Babylon’s staking mechanism. While Bitcoin provides external security guarantees, BABY is used to align incentives and manage slashing and reward mechanisms.