Babylon Foundation Has Unveiled an Airdrop for Its BABY Token, Rewarding Early Backers of Its Bitcoin-native Staking Protocol

The Babylon Foundation, a decentralized finance (defi) protocol focused on the Bitcoin network, has announced plans for its BABY token generation event, which includes an airdrop to early supporters.

The Babylon Foundation, a decentralized finance (defi) protocol focused on the Bitcoin network, has announced plans for its BABY token generation event, which includes an airdrop to early backers of its Bitcoin-native staking protocol.

Babylon’s protocol is designed to leverage Bitcoin’s proof-of-work (PoW) security for proof-of-stake (PoS) networks through a native staking mechanism that does not require intermediaries or token wrapping. Its model addresses a specific function in defi: enabling Bitcoin to contribute to the security of PoS networks. The token’s allocation and governance framework are intended to distribute decision-making and incentivize network participation.

Babylon’s token launch also marks a significant step in its attempt to connect Bitcoin’s existing infrastructure with other blockchain networks. Its continued development will test the feasibility of integrating Bitcoin’s security model with staking-based protocols.

As of April 3, 2025, Babylon’s protocol has locked $4.26 billion in crypto assets, according to data from defillama.com, making it one of the largest defi protocols. The protocol’s TVL has declined by 26% over the past year as crypto prices have adjusted and broader defi activity has slowed.

BABY Token: Key Points

Total supply: 10 billion tokens

Token use cases: Governance, transaction fees, and network security

Staking: Both bitcoin and BABY stakers will receive 4% annual inflation in BABY.

Token allocation:

Community rewards: 15%

Ecosystem development: 18%

Research and development: 18%

Early investors: 30.5%

Team: 15%

Advisors: 3.5%

Unlocking and Vesting Schedules

Early investors: 3.05 billion BABY allocated, 12.5% to unlock after one year, remainder vesting linearly over three years.

Team: Tokens vest over four years with a one-year cliff.

Advisors: Allocations follow similar timelines to investors.

Ecosystem development and R&D tokens will unlock in phases, with portions eligible for staking.

Babylon’s protocol allows bitcoin ( BTC) holders to stake assets directly on the Bitcoin blockchain. Using Bitcoin’s unspent transaction output (UTXO) model, the protocol enables users to maintain custody of their bitcoin while participating in the security of PoS chains and decentralized applications (dapps).