Posted: December 7, 2023 10:45 AM Updated: December 7, 2023 10:46 AM
Correction and fact check date: December 7, 2023, 10:45 AM
briefly
Babylon has raised $18 million in funding for its Bitcoin staking protocol to expand its existing team and fuel the growth of the Web3 ecosystem.
The Babylon Bitcoin staking protocol, currently in development, has raised $18 million in funding led by Polychain Capital and Hack VC, with contributions from Framework Ventures, Polygon Ventures, and OKX Ventures. The allocated funds will be utilized to expand the existing team and fuel the growth of the ecosystem.
The Babylon Protocol is designed to allow Bitcoin holders to stake their coins on a proof-of-stake blockchain and earn a profit in the process. Essentially, this allows proof-of-stake chains to introduce Bitcoin as a staking asset on the network.
Babylon aims to leverage the security of Bitcoin to strengthen the security of the Proof-of-Stake chain. Unlike traditional proof-of-stake chains that rely on the capital of their native tokens for security, Babylon aims to provide a more cost-effective solution, especially for emerging chains facing challenges related to the high inflation rates required to attract significant staking capital. Let’s do it.
Babylon’s staking service integrates Bitcoin Ordinals technology with the goal of expanding Bitcoin’s utility beyond its role as a store of value. Babylon founder David Tse sees potential demand for his product among Bitcoin holders despite some opposition within the Bitcoin community to this new use case for his asset.
The expected launch date for the staking service is April 2024, with the test network expected to launch in January 2024. The construction of the main network will depend on the results of a security audit of the Babylon test network.
Once launched, the Babylon Chain Protocol will serve as the control plane between Bitcoin and Proof-of-Stake chains.
Nurturing the future of decentralized security
The Babylon round of financing, which began in late July, has now closed. It followed an equity + token warrant structure that mirrored Babylon’s $8 million seed funding round led by IDG and Breyer Capital earlier this year.
According to Project Lightpaper, Babylon’s goal is to transform all 21 million Bitcoins, the total supply, into a decentralized staking asset, creating a “decentralized world guaranteed by Bitcoin.” There are currently approximately 19.6 million Bitcoins in circulation.
The Babylon Protocol has raised $18 million in funding, allowing Bitcoin holders to stake their coins on a proof-of-stake blockchain, increasing security without the cost constraints faced by traditional proof-of-stake chains. The protocol, expected to launch in April 2024, marks a significant step forward towards a decentralized world secured by Bitcoin.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles