Babylon Foundation announces the airdrop of the BABY token

Tech

Babylon Foundation announces the airdrop of the BABY token

Yesterday, the Babylon Foundation announced an airdrop of 600 million BABY tokens.

This is 6% of the entire supply of BABY, which is not yet listed on any exchange.

Babylon Foundation: the airdrop of the BABY token

The airdropis intended for the early adopters of Babylon.

This airdrop celebrates the Bitcoin stakers of Phase 1, the holders of Pioneer Pass NFT, and the open-source developers who have contributed to the Babylon ecosystem.

The BABY tokens will be transferred to eligible recipients through Cuneiform Assets, a company of the Babylon Foundation.

Of the 600 million tokens distributed, 30 million will go to staking participants, 335 million will be distributed as staking rewards, while 200 million will be distributed as a bonus for the Phase 2 Transition of staking.

To these, 30 million tokens must be added, which will be distributed to the holders of the NFT Pioneer Pass, and another 5 million distributed to the Developer Recognition Program on GitHub.

The distribution of the tokens will be carried out simultaneously with the launch of the Babylon Genesis blockchain (during the so-called Network Launch), except for those distributed as a bonus which will be released 6 months later.

The Babylon Foundation has also published a FAQ page to better explain the details of the airdrop.

Future airdrop of the BABY token

Future airdrop di token BABY are also expected.

For example, an airdrop dedicated to social media contributors who have supported Babylon from August 22, 2024, to February 19, 2025, has already been planned.

However, other airdrops are also planned for the future, but the details have not yet been communicated. They will probably concern wallet campaigns and incentives for liquid staking.

Babylon Foundation announces that all the details about the new airdrops will be revealed only after

More details, including eligibility and timing, will be shared immediately after the Network Launch of the Babylon Genesis.

The tokenomics of BABY

At the time of the Network Launch, 10 billion BABY tokens will be created.

An annual inflation of 8% is expected. Half of the new tokens created will be distributed as a reward for staking BTC, while the other half will be distributed as a reward for staking BABY.

BABY will indeed be the native token of the Babylon Genesis blockchain, so it will be used to pay the gas on transactions and for the execution of smart contracts.

It will also function as a governance token, allowing holders of this token and delegated validators to vote on protocol changes and network updates.

Of the 10 billion tokens initially created, 15% will be distributed for community incentives with a program managed directly by the Babylon Foundation, while another 15% will go to the main members of the Babylon team.

18% will be used for the construction of the ecosystem, and another 18% will be allocated to research and development.

The bulk (30.5%) will instead go to the initial investors in Babylon.

Finally, the remaining 3.5% will be allocated to the consultants.

Babylon Foundation

Babylon Foundation in theory would be working on the creation of new native use cases for Bitcoin.

In reality, the launch of its own blockchain reveals that they are expanding in other non-native directions as well, so much so that their new blockchain will no longer be based on Proof-of-Work, like that of Bitcoin, but on Proof-of-Stake.

Note that the project was created only two years ago, so it is a relatively recent initiative.

Another point to clarify is that Babylon Foundation promises Bitcoin staking, but Bitcoin cannot actually be staked, as its blockchain is not based on Proof-of-Stake.

In fact, they promise to allow “staking” of BTC through another decentralized protocol (based on their Babylon Genesis blockchain) that uses Bitcoins official unspent transaction output (UTXO) model to receive BABY tokens in return.

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Babylon Labs

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Behind the Babylon project, there is a private company, Babylon Labs.

Babylon Genesis promises to be decentralized and managed by a foundation, Babylon Foundation, as well as by the same holders of the BABY token.

At this moment, Babylon Labs claims to have more than 51,000 BTC already in “staking,” which is approximately 4.3 billion dollars, as confirmed by Defillama data.

Note that initially, from the end of October 2024 to the beginning of December, the BTC in staking had decreased from almost 24,000 initially to less than 22,700, but then in December, within a week, they suddenly rose to more than 57,000.

Since then, they have decreased again to the current approximately 51,400.