The second cap of Babylon’s Bitcoin Staking Mainnet Phase-1, known as Cap-2, is set to open on October 9, 2024, at around 11 AM UTC. This event marks another important milestone in Babylon’s effort to bring Bitcoin’s security to Proof-of-Stake (PoS) networks. For Bitcoin holders looking to participate, Cap-2 introduces key updates that increase flexibility while lowering unbinding costs for participants.
What Is Cap-2 and How Does It Work?
Cap-2 is a duration-based cap, meaning it will last for a specific number of Bitcoin blocks rather than a specific amount of staked Bitcoin. From block height 864790 to 864799, all valid Bitcoin staking transactions will be accepted, and no total value locked (TVL) cap will apply during this time. This allows for greater flexibility and ensures that every transaction included in these blocks is processed.
Unlike the previous cap, Cap-2 offers more opportunities for participants to stake larger amounts of Bitcoin while also enjoying reduced fees.
Key Updates for Cap-2
Several significant updates have been made for Cap-2 that will benefit participants:
Maximum Stake Increased: The maximum stake per transaction has increased from 0.05 bitcoins to 0.5 bitcoins, giving users more room to participate with larger stakes.
Lower Unbonding Fees: Unbonding fees have been reduced by 50%, from 0.00064 bitcoins to 0.00032 bitcoins. This fee reduction helps make unbonding more cost-effective.
Increased Points per Bitcoin Block: The number of points allocated per Bitcoin block has jumped from 3,125 to 10,000, offering greater rewards for stakers. These points will be distributed proportionally among all active stakes during each block.
What Happens After Block 864799?
Once Bitcoin block 864800 is reached, any new staking transactions will be considered overflow and will not be accepted by the system. Overflow stakes will not accrue points, and users who find themselves in this category should unbond and withdraw their stakes.
It’s also important to note that overflow stakes from Cap-1 will not carry over into Cap-2, meaning they should also be unbonded and withdrawn.
How to Participate
If you’re interested in participating in Cap-2, make sure you’re prepared ahead of the October 9 window. Bitcoin staking transactions within blocks 864790 to 864799 will be accepted, and you’ll need to act quickly to take advantage of the new parameters. Ensure you have the necessary funds and that you are familiar with the updated staking and unbonding processes.
Choosing a Validator: Support Stakecito
As a validator for Babylon, Stakecito is actively participating in this important milestone for the network. We invite you to come stake your BTC with us!
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About Stakecito Labs
At Stakecito Labs, we've honed our craft as validators. Our reputation as the third-largest validator by delegation count within the Cosmos ecosystem speaks to our unwavering dedication and the trust placed in us by over 270,000 delegators worldwide.
Our validation services are not just about maintaining Cosmos blockchain networks though; we validate networks outside of Cosmos as well (NEAR, Aleph Zero, etc.).
Our core mission is centered on demystifying blockchain technology to ensure it's accessible for everyone, from newcomers to seasoned investors. To begin staking, visit our homepage.
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