Babylon announces 10B BABY token airdrop for early users

The Babylon Foundation has unveiled plans for a 10 billion BABY (CRYPTO:BABY) token airdrop to reward early supporters of its Bitcoin-native (CRYPTO:BTC) staking protocol.

Babylon enables Bitcoin holders to stake their assets directly on the Bitcoin blockchain, leveraging its proof-of-work (PoW) security to support proof-of-stake (PoS) networks without requiring intermediaries or token wrapping.

Babylon’s protocol uses Bitcoin’s unspent transaction output (UTXO) model, allowing users to maintain custody of their BTC while participating in the security of PoS chains and decentralised applications (dApps).

As of April 3, 2025, Babylon’s total value locked (TVL) stands at $4.26 billion, according to DeFiLlama data.

The BABY token will serve multiple functions within the Babylon ecosystem, including governance, transaction fees, and network security.

Token distribution is structured to incentivise participation, with allocations for community rewards (15%), ecosystem development (18%), research and development (18%), early investors (30.5%), the team (15%), and advisors (3.5%).

Early investors will unlock 12.5% of their allocation after one year, with the remainder vesting linearly over three years.

Babylon’s staking model addresses key challenges in decentralised finance (DeFi), such as liquidity and security.

By enabling Bitcoin staking without bridging or transferring assets to third-party custodians, the protocol ensures slashable security guarantees for PoS chains while maintaining liquidity through fast stake unbonding.

“Advanced cryptography translates slashing conditions directly into spendable Bitcoin transactions, eliminating the need for bridges and centralised custodians,” emphasised David Tse, Babylon’s co-founder, highlighting the importance of trustless staking.

This approach positions Babylon as a scalable solution for integrating Bitcoin’s security model with PoS networks.

The airdrop formalises Babylon’s commitment to expanding its ecosystem and incentivising early adoption.

As more PoS chains connect to Babylon, stakers are expected to benefit from increased yields driven by network growth and adoption.