The third cap of Babylon’s Bitcoin Staking Mainnet Phase-1, referred to as Cap-3, is set to launch on December 10, 2024, at approximately 11 AM UTC. This duration-based cap brings expanded staking limits, a longer staking window, and a new tiered rewards structure, making it a significant update for participants in Babylon’s trustless and non-custodial staking protocol.
Cap-3: Duration and Staking Window
Cap-3 will operate as a duration-based cap lasting for 1,000 Bitcoin blocks, roughly one week. During this period, all valid Bitcoin staking transactions included in the designated block heights will be accepted without any total value locked (TVL) cap. The exact block range will be announced three days before the cap opens, giving participants time to prepare their transactions.
Updated Staking Limits and Fees
The parameters for staking have been updated to accommodate larger participants while maintaining accessibility for smaller contributors:
Minimum Stake: The minimum per transaction remains at 0.005 bitcoins.
Maximum Stake: The maximum per transaction has increased significantly from 500 bitcoins in Cap-2 to 5,000 bitcoins in Cap-3.
Unbonding Fee: The unbonding fee remains at 0.00032 bitcoins, continuing the reduced cost introduced in previous caps.
Tiered Points Distribution System
Cap-3 introduces a new two-tier points distribution system, which provides greater incentives for early participation:
First 300 Blocks: 100,000 points per Bitcoin block will be distributed proportionally among all active stakes.
Remaining 700 Blocks and Beyond: 21,000 points per Bitcoin block will be distributed for the remainder of the cap and until further notice.
These points are shared across all active stakes from all caps, ensuring fair distribution based on contribution. It is important to note that points are virtual items with no monetary value and are not available in certain jurisdictions, including the United States.
Preparing for Cap-3
Participants interested in Cap-3 should prepare ahead of the December 10 launch. Ensure your Bitcoin is ready to stake, and monitor Babylon’s announcements for the exact block heights. This cap’s longer duration and updated parameters offer a valuable opportunity to contribute to Babylon’s protocol and earn proportional rewards.
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