Babylon has officially announced the launch of its Phase-2 testnet, known as bbn-test-5, set to begin block production on January 8, 2025, at 9 AM UTC. This phase introduces an upgraded staking web app and focuses on testing new functionalities within the Babylon Proof-of-Stake chain. The testnet emphasizes interoperability and collaboration among key protocol participants.

Key Features of The Babylon Phase-2 Testnet

According to a recent blog post, the Babylon Phase-2 testnet will include a Proof-of-Stake chain secured by both Bitcoin PoS stakes and Signet Bitcoin stakes. This will incorporate both existing stakes from Phase-1 and newly created ones. Participants can register their Phase-1 stakes using the upgraded staking web app, which goes live at 10 AM UTC on January 8.

The new testnet will allow developers, stakers, and other participants explore the registration of Phase-1 Signet Bitcoin stakes for Phase-2 operations. The testnet encourages collaboration among stakers, wallets, and developers by supporting the deployment of permissionless smart contracts. However, the tokens involved in this testnet are simulated and hold no monetary value.

Moreover, it is important to note that BOB recently integrated with Babylon to leverage Bitcoin finality for securing transactions. This integration uses Liquid Staking Tokens (LSTs) to enhance Bitcoin liquidity in DeFi while retaining the robust security of Bitcoin’s blockchain.

Faucets and Testnet Participation

To enable participation, the Bitcoin staking network has provided testnet faucets for acquiring the necessary funds. The faucets will distribute test Signet Bitcoin and tBABY tokens after the testnet launch. Signet Bitcoin, available through the Discord and OKX faucets, will be used for creating new stakes. Similarly, the Discord faucet will distribute 0.3 tBABY tokens per address weekly.

Additionally, the staking app enables migration of Phase-1 stakes to the Phase-2 testnet. New stakes can also be created, and the app provides fast unbonding times of approximately 16-17 hours.

Staking and Validation in The Bitcoin PoS Testnet

Participants in the Babylon Phase-2 testnet include stakers, finality providers, CometBFT validators, and wallets. Stakers can register stakes through the staking app or CLI tools, while finality providers ensure network security by casting finality votes. CometBFT validators participate in block production, contributing to the consensus mechanism of the Bitcoin PoS chain.

In addition, stake limits for Phase-2 have been established to prevent spam and manage stake flow. Transactions require a minimum stake of 0.0005 Signet Bitcoin, with a maximum stake of 350 Signet Bitcoin per transaction. The active set size for finality providers and CometBFT validators is capped at 100 slots each.

Notably, participation in the Phase-2 testnet is restricted based on jurisdictional and regulatory considerations. Individuals and entities from sanctioned regions, including U.S. residents, are prohibited from participating. 

More so, last month, crypto exchange Binance revealed its plans to debut On-chain Yields, starting with Babylon BTC Staking. This initiative allows users to stake BTC and earn rewards directly through the platform.

The post Babylon Kicks Off Phase-2 Testnet With These Staking Features appeared first on CoinGape.

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Filed under: News - @ January 7, 2025 1:24 am