Babylon Mainnet Upgrade Ushers In New Era for BABY Tokenomics

Babylon Mainnet Upgrade Successfully Deployed

Babylon has reached a major milestone with the successful rollout of its latest mainnet upgrade, delivering structural changes to BABY tokenomics and the BTC staking mechanism. This update boosts system efficiency and further reinforces the foundation for sustainable ecosystem growth.

(Source: babylonlabs_io)

Token Inflation Rate Adjusted Downward

The most significant change in this upgrade is the reduction of BABY’s annual inflation rate from 8% to 5.5%. This adjustment means roughly 250 million fewer tokens will be issued each year, making the supply more manageable and supporting a healthier token economy.

Introduction of Co-staking Mechanism

The new version officially enables Co-staking, allowing users who stake both BTC and BABY to earn higher returns than those who stake BTC alone. This change aims to:

• Deepen BTC stakers’ participation in the BABY ecosystem
• Link incentive structures between both assets
• Strengthen community bonds and overall economic engagement

This advancement marks a key step in enhancing value synergy across the ecosystem.

BTC Stake Extension Feature Launched

The newly launched BTC Stake Extension feature allows stakers to extend their lock-up periods without unlocking early, ensuring uninterrupted BTC staking rewards regardless of operational or cycle gaps. This improvement lets users:

• Maintain continuous reward accrual
• Reduce manual operation risks
• Enjoy a smoother staking experience

Ongoing Expansion of the BABY Ecosystem

The Babylon team highlights that this mainnet upgrade is just the first step toward optimizing the BABY ecosystem. The revised version reflects extensive dialogue and consensus-building among Babylon Labs and the community, with input from forums and social platforms forming the basis for final improvements. Looking ahead, the team will continue to:

• Expand BABY’s real-world utility
• Advance the Trustless Bitcoin Vault Protocol
• Work with the community to strengthen the token economy’s resilience

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Conclusion

The latest Babylon mainnet upgrade establishes a stronger foundation for BABY tokenomics and BTC staking. Whether through reduced inflation, co-staking rewards, or smoother staking management, the project is progressing toward greater maturity and long-term sustainability. With new features continuously launching, Babylon’s ecosystem has substantial growth potential ahead.