Babylon Labs has officially launched Babylon Genesis, the first-ever Layer-1 blockchain secured by Bitcoin.
Babylon Labs (BABY) just announced that Babylon Genesis Layer-1. This launch follows the initial Phase 1 rollout in August 2024, which introduced Bitcoin (BTC) staking through self-custodial contracts. Since the initial launch, the protocol has attracted 49678.65 BTC ($4.06B) staked in self-custodial contracts. According to DefiLlama, Babylon currently ranks second in Total Value Locked among restaking protocols, after EigenLayer.
With today’s launch, the project enters Phase 2. This stage includes the full release of the Genesis blockchain, the activation of core infrastructure such as validator nodes and finality providers, and the debut of the BABY token, which is now available for transfers and staking.
Eligible users will receive airdropped BABY tokens directly to their wallets, and both transferring and staking the token are supported from day one. The final phase, Phase 3, will introduce additional Bitcoin-Secured Networks, enabling other blockchains to access BTC staking security and liquidity via Babylon Genesis Layer-1.
Babylon offers a unique way to stake Bitcoin in that it allows users to lock their BTC in self-custodial contracts while maintaining ownership. Unlike traditional staking, where assets are handed over to a smart contract or custodian, Babylon’s method ensures full control remains with the user. If a participant, like a validator or finality provider, acts dishonestly, their staked BTC can be “slashed” (partially penalized), similar to Proof-of-Stake blockchains.
“Bitcoin OGs really care about custodying [their] own keys, having control over [their] own financial decisions,” said Spencer Yang, co-founder of Fractal Bitcoin, in an interview.
The blockchain is secured by validators staking BABY token and finality providers staking BTC for extra security.
Looking ahead, one major feature to look out for is a trust-minimized bridge between Bitcoin and Genesis, called BitVM2. This will enable BTC to flow into the Babylon ecosystem without relying on multisig setups, using slashing and cryptographic techniques to enforce trustless behavior.
