How to Stake Bitcoin with Babylon and stakefish

What’s in this guide:

1. Introduction
2. What is Babylon Bitcoin Staking?
3. Wallet Recommendations
4. How to stake Bitcoin with stakefish

Introduction

As of August 22, Babylon’s Bitcoin Staking Mainnet is officially live, marking a groundbreaking moment in the evolution of Bitcoin. This launch allows Bitcoin holders to contribute to the security of Proof-of-Stake (PoS) networks without transferring their assets to a third party. Babylon is redefining Bitcoin’s utility by enabling it to play an active role in securing PoS blockchains, Layer 2s, Data Availability layers, oracles, and more—all without relying on a trusted intermediary.

What is Babylon Bitcoin Staking?

In the PoS (Proof of Stake) world, holding tight equals earning. PoS token holders can lock their tokens to become validators of the PoS system. If a validator acts maliciously, the locked tokens will be slashed. With such deterrence, the more tokens staked, the higher the crypto-economic security of the PoS system. In return, honest stakers get rewards for contributing to the security.

Introducing Bitcoin Staking, a new protocol developed by Babylon. This protocol transforms Bitcoin into a stakable asset compatible with any Proof-of-Stake (PoS) system, enabling Bitcoin holders to earn rewards while contributing to the crypto-economic security of the PoS ecosystem. This innovation is a significant milestone towards realizing Babylon's vision and supports the goal of a decentralized world secured by Bitcoin.

The trustless and self-custodial Bitcoin staking protocol does not:

• Require you to send your Bitcoins to any third-party Bitcoin address;
• Require you to bridge/wrap your Bitcoins to another blockchain;
• Require you to trust any oracle (such as a price oracle);
• Rely on altcoin collateral for redemption.

According to the protocol, Bitcoin holders simply need to lock their Bitcoins in a self-custodial manner. These locked Bitcoins then become stakable and subject to slashing, while also benefiting from all the popular staking elements in the PoS ecosystem:

• Earn PoS token rewards while holding;
• Delegable: If you don't want to run a validator infrastructure yourself, you can delegate your voting power to another validator. Note that this does not require transferring your Bitcoins;
• On-demand unbonding: you can unilaterally get your Bitcoin back without anyone’s permission;
• Restakable: you can stake one Bitcoin to multiple PoS systems to earn multiple rewards;
• Partial slashing: the protocol can be configured such that, for each slashed staker, only a fraction of its staked Bitcoin is slashed, and the rest is returned to the staker.

Learn more about Babylon’s system components, risk management, and security on their website.

Babylon Mainnet: Now Live

The Babylon Mainnet is now live, following a phased launch approach:

Phase 1: Bitcoin Locking (Live Now)

• Bitcoin holders initiate the staking process by submitting Bitcoin staking transactions to the Bitcoin blockchain. These transactions lock the Bitcoin within a secure, self-custodial staking script. Stakers also specify the public key of a finality provider, preparing their Bitcoin to participate in PoS consensus validation.
• Each stake is capped with a maximum staking time of approximately 15 months. However, stakers can unbond on demand, with a withdrawal period of about seven days.

Phase 2: Bitcoin Staking Activation

• In this phase, the Babylon PoS chain will receive security from the Bitcoin locked in Phase 1. Finality providers will use the staked Bitcoin to participate in the Babylon PoS chain’s consensus, ensuring block finality. The Bitcoin timestamping protocol will also be introduced, enabling cross-chain time synchronization for enhanced security.

Phase 3: Bitcoin Multi-Staking Activation

• The final phase transforms Babylon into a marketplace for shared security, allowing Bitcoin holders to stake their assets across multiple PoS systems simultaneously. This multi-staking capability enables users to maximize their staking rewards across different networks.

Key Features and Details

Point System and Commissions

• During Phase 1, staking rewards are tracked through a point system, as the PoS chain is not yet active. Points are allocated proportionally based on each stake, with commissions paid to the finality provider. It’s important to note that points have no monetary value and are not transferable.

Security and Governance

• A covenant committee, operating as a 6-out-of-9 multi-signature verification scheme, secures the unbonding process. The committee, composed of reputable entities from different sectors, ensures the safety and correctness of unbonding transactions.

Eligibility

• Staking is prohibited for residents of certain countries, including the United States, Canada, Australia, and Mainland China, due to regulatory restrictions.

Wallet Recommendations

To stake your Bitcoin with Babylon and stakefish, you’ll need a compatible Bitcoin wallet. Here’s a list of supported wallets:

• Bitget Wallet (Software Wallet, Web, Extension, Mobile)
• Keystone Wallet (Hardware Wallet)
• OKX Wallet (Software Wallet, Web, Extension, Mobile)
• OneKey Wallet (Hardware and Software Wallet, Desktop, Mobile, Hardware Bridge, Extension, Web)

How to stake Bitcoin with stakefish

Ready to stake your Bitcoin? Start by visiting the Babylon validator page to lock your Bitcoin and contribute to the security of PoS blockchains.

The following steps will show you how to stake Bitcoin using the stakefish dashboard.

1. From the stakefish homepage, navigate to “Networks” and select “Babylon.”

2. From the Babylon Validator page select “Stake Now.”

3. Connect your wallet to the Babylon Bitcoin staking dashboard.

4. Select your wallet.

5. Once your wallet is connected, you will return to the staking dashboard. From here, select “Stake Now.”

6. Select the amount of BTC to stake, the staking term, and the default fee rate. Select "Preview" to continue.

7. Review your stake and select "Confirm and Stake" to confirm the transaction.

8. View your staked Bitcoin with Babylon on your stakefish staking dashboard.

That’s it. You are now staking Bitcoin!

For more detailed information about the Babylon Mainnet, check out this comprehensive guide.

For more staking opportunities, visit us at stake.fish.

Stake with confidence with stakefish

With over 1 million Ethereum staked and over $4 billion in assets staked, stakefish is a leading validator for Proof of Stake blockchains. Our mission is to secure and contribute to this exciting new ecosystem while enabling our users to stake confidently.

Learn more about non-custodial Ethereum staking and the 15+ other networks we support at stake.fish.

For updates and special announcements, follow our Twitter (@stakefish 🐠) and join our community on Telegram.

Visit our website 🐠 | Telegram | Twitter  | Instagram | YouTube | LinkedIn | Reddit