On April 24, Babylon Genesis reached a new milestone with the removal of its Cap-1 restriction, officially opening Bitcoin staking to the broader public. This shift marks the end of a two-week exclusive period that had been reserved for early Phase-1 participants - those who contributed to Babylon’s launch by staking BTC prior to Genesis. With that window now closed, BTC staking is fully permissionless and accessible to all users.
The Role of Cap-1 Stakers
When Babylon Genesis launched on April 10, only Cap-1 Phase-1 stakers were allowed to register their BTC stakes on-chain. This controlled rollout was intended to reward early contributors and ensure a stable start to the network’s Bitcoin staking operations. Cap-1 stakers were the first to register as Finality Providers, helping bootstrap the security of the Bitcoin Secured Network (BSN) from day one.
How Bitcoin Staking Works on Babylon
Staking BTC on Babylon involves submitting a registration transaction on the Babylon Genesis chain. This Cosmos SDK-based transaction includes cryptographic metadata and consumes BABY tokens as gas. Once registered, the BTC stake becomes active and begins earning BABY staking rewards. The Babylon protocol enforces slashability throughout the staking and unbonding process, maintaining security without relying on external custody or bridges.
Implications for the BTCFi Ecosystem
The opening of Bitcoin staking to all users marks a significant development for BTCFi - an emerging category of financial applications that integrate Bitcoin into DeFi ecosystems. Babylon’s trustless Bitcoin staking model allows native BTC to secure applications on other chains without requiring users to leave the Bitcoin base layer. This approach not only preserves self-custody but also unlocks staking rewards, new utility for BTC, and scalable network security.
What’s Next for Babylon
With Bitcoin staking now permissionless, Babylon Genesis is expected to enter a period of rapid growth. The Finality Provider set will continue to expand, and new BTC capital can begin participating in network security. Additional integrations with Cosmos appchains, Sui, Ethereum, and other ecosystems are on the horizon, further positioning Babylon as a key infrastructure layer for decentralized applications secured by Bitcoin.
For users who missed the initial Phase-1 staking period, this new phase provides a second chance to engage with Babylon's native staking and governance systems. As the BTCFi space matures, Babylon’s permissionless model may serve as a reference point for how Bitcoin can be brought into the broader crypto economy - without compromise on security or decentralization.
