Babylon Launches Phase-2 Testnet with Enhanced Staking and Bitcoin Integration

Babylon has launched its Phase-2 testnet, bbn-test-5, set to begin block production on January 8, 2025.
This phase introduces enhanced staking tools and tests new features on its Proof-of-Stake (PoS) chain, prioritizing collaboration and interoperability.
The testnet integrates Bitcoin PoS and Signet Bitcoin stakes, allowing participants to register existing Phase-1 stakes or create new ones through an updated staking app. The platform also supports permissionless smart contracts, with all tokens used being purely simulated.
Leveraging Bitcoin finality through Liquid Staking Tokens (LSTs), Babylon boosts DeFi liquidity while maintaining blockchain security. Faucets provide test Signet Bitcoin and tBABY tokens for staking, with improved unbonding times of 16-17 hours. Stake limits are set to ensure balanced participation.
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Participation is restricted in some regions, including the U.S., due to regulatory considerations. Separately, Binance has launched its On-chain Yields program, starting with Babylon BTC staking, offering users new opportunities to earn rewards.
Babylon’s Phase-2 testnet represents a step forward in building a scalable and secure blockchain ecosystem, paving the way for broader innovation in 2025.