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Babylon lowers baby inflation: BTC-Co-Staking brings new chances!
Babylon plans to reduce baby inflation and a BTC baby-co-staking system to ensure long-term sustainability.
Babylon lowers baby inflation: BTC-Co-Staking brings new chances!
On October 3, 2025, Babylon presented an innovative proposal for reducing baby inflation and introducing a BTC baby-co-staking system. The aim is to reduce the annual inflation from currently 8% to 5.5%, which brings a significant reduction in the growth of offer by a good 30%. The planned testnet launch is expected to take place at the end of September, followed by a launch of the Minneet in October.
The proposal stipulates the annual inflation: 1% for Bitcoin-Stakers, 2% for baby stakers and 2.35% for BTC-Baby-Co-Stakers. In addition, 0.15% of inflation to ensure network security between validators and final providers would be distributed. These adjustments aim to ensure the long -term sustainability of the system, supported by an impressive 6.38 billion USD, which are already in Bitcoin.
CO-staking system for stronger networking
On the one hand, the new co-staking system is intended to connect Bitcoin and baby holders and, on the other hand, increase incentives to actively participate in the network. A Bitcoin is entitled for additional rewards for each 20,000 stalks. An example illustrates these advantages: A user who docked 6 BTC with 50,000 baby could access an additional earnings potential of 2.5 BTC. With a staking position of 150,000 baby, the user would even be entitled to the entire position.
These measures are crucial to strengthen the interaction between baby and Bitcoin stakers. The proposal also shows a clear vision for future developments, in particular the introduction of Bitcoin vaults without trust. These could enable users to interact native BTC without bridging or wrapping with defi applications.
Overall, Babylon promises to take an important step in the further development of the staking ecosystem with this proposal, and it remains to be seen how the community will react to this innovation. The past few months have shown that proactive adaptation to the conditions and needs of the users is essential to ensure a sustainable and attractive network.
For more information about the proposal and the planned changes, interested parties can on the article Crypto News read.