Babylon Labs Launches Phase-1 Bitcoin Staking Mainnet on August 22, Fees Surge to $137

Aug 22, 2024, 01:11 PM

Babylon Labs has launched Phase-1 of its self-custodial Bitcoin staking mainnet on August 22, marking a significant development in the cryptocurrency space. The launch allows Bitcoin holders to stake their assets directly on Proof-of-Stake (PoS) blockchains without involving third-party custody, bridges, or wrapping. This initiative aims to enhance the security of PoS systems while offering staking rewards to users. The mainnet launch has led to a surge in Bitcoin transaction fees, which spiked from $0.50 to as high as $137, as users rushed to participate. The initial phase has a staking cap of 1,000 Bitcoins, which was quickly filled. During Phase-1, every stake is set with a maximum staking time of 64,000 Bitcoin blocks. Babylon's protocol allows Bitcoin to be locked in a script, earning voting power and staking rewards. The launch represents a new use case for Bitcoin, expanding its utility beyond a store of value and payments.