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

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.


READ MORE: China’s Economic Woes Ignite Speculation of a Bitcoin Rally


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.

Author
Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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