Space Summary
The Twitter Space Babylon Bitcoin Staking Mainnet Launch: Phase 1 hosted by babylonlabs_io. The Babylon Bitcoin Staking Mainnet Launch Phase 1 brings a revolutionary approach to securing the Decentralized Economy by unlocking 21 Million Bitcoins. With innovative strategies and a focus on blockchain technology integration, this event marks the beginning of a transformative journey in the DeFi space. Participating in staking activities not only contributes to network validation but also offers growth potential, rewards, and impacts Bitcoin scarcity and value. Enthusiasts can engage in secure staking processes, aligning with the future of blockchain technology and promoting sustainable growth in digital economies.
For more spaces, visit the DeFi page.
Questions
Q: What makes Babylon Bitcoin Staking unique in the crypto industry?
A: Babylon Bitcoin Staking introduces innovative approaches to secure the Decentralized Economy by unlocking 21 Million Bitcoins.
Q: How does Bitcoin staking contribute to network security?
A: Participating in staking activities enhances network validation and overall security by involving users in the consensus mechanism.
Q: What are the benefits of unlocking 21 Million Bitcoins for investors?
A: Unlocking 21 Million Bitcoins presents growth potential, rewards participants, and impacts Bitcoin scarcity and value.
Q: Why is blockchain technology integration crucial for secure staking activities?
A: Blockchain technology ensures transparency, immutability, and security in staking processes, boosting user trust.
Q: What is the significance of decentralized systems in the digital economy?
A: Decentralized systems promote autonomy, security, and resilience, crucial for the sustainable growth of digital economies.
Q: How does Bitcoin staking align with the future of blockchain technology?
A: Staking activities foster community engagement, network decentralization, and contribute to the evolution of blockchain ecosystems.
Q: What opportunities does Bitcoin staking offer for passive income?
A: Staking provides investors with passive income opportunities through network participation and the validation of transactions.
Q: How does Phase 1 launch mark a new era in the crypto space?
A: Phase 1 launch signifies the beginning of a transformative journey, paving the way for enhanced security, scalability, and growth in the crypto industry.
Q: What are the implications of Bitcoin scarcity on market dynamics?
A: Bitcoin scarcity influences demand, value appreciation, and market behaviors, impacting investment strategies and market trends.
Q: How can enthusiasts get involved in Babylon Bitcoin Staking activities?
A: Enthusiasts can engage in staking by participating in network activities, contributing to security, and earning rewards for validating transactions.
Highlights
Time: 00:15:47
Innovative Approaches by Babylon Bitcoin Staking Unveiling unique strategies to secure the decentralized economy through Bitcoin staking.
Time: 00:30:12
Network Validation and Security through Staking Exploring how staking activities enhance network security and decentralized consensus mechanisms.
Time: 00:45:29
Impact of 21 Million Bitcoins Unlocking Delving into the implications of unlocking 21 Million Bitcoins on market dynamics and Bitcoin value.
Time: 01:00:51
Decentralized Systems in Digital Economies Understanding the role of decentralized systems in fostering trust, autonomy, and resilience in digital ecosystems.
Time: 01:15:23
Future of Staking and Blockchain Evolution Discussing how staking activities shape the future of blockchain technology, community engagement, and network decentralization.
Time: 01:30:45
Opportunities for Passive Income in Staking Exploring the passive income opportunities for investors through network participation and consensus validation.
Time: 01:45:19
Phase 1 Launch: Transformative Beginnings Analyzing the significance of Phase 1 launch for enhanced security, scalability, and growth in the crypto space.
Key Takeaways
- Babylon Bitcoin Staking unveils innovative strategies in the crypto world.
- Securing the Decentralized Economy through Bitcoin staking is a pivotal move.
- Phase 1 launch marks the beginning of a transformative journey in the crypto space.
- 21 Million Bitcoins unlocking indicates significant growth potential.
- The integration of blockchain technology is crucial for enhanced security and transparency.
- Participation in staking contributes to network validation and rewards for users.
- Understanding the importance of decentralized systems in the digital economy.
- Exploring the impact of staking on Bitcoin scarcity and value.
- The future implications of large-scale Bitcoin unlocking on market dynamics.
- Opportunities for investors and enthusiasts to engage in staking activities.
Behind the Mic
Introduction and Excitement for Mainnet
Hello, everyone. How you doing, Fisher? Hi, Eric. How are you? Hi, everyone. Doing really good. So excited. I can't believe it's, you know, almost here. Mainnet. We've been waiting for it for a while, so it's just really cool. It's about to happen. Yes, we're excited. 24 hours. 24 hours until Mainnet. It's happening. Lots of questions. We see some questions from the community. So I'll ask those at the end. But we'll get started with some. Just general questions that people might have about our main net. Sure, no problem. Awesome. Awesome. So we'll get straight right into it. So today I'm joined by Fisher, co founder of Babylon Labs. And he's going to be answering some questions just about the Mainnet. If you guys have seen the blog, a lot of information will seem familiar. But we'll also have a little section at the end. We'll be answering some community questions. So just really excited to be here and let's get started. Fisher.
Vision Behind Babylon
So I'm going to ask you this question. What was the vision and the motivation behind Babylon and connecting bitcoin with the POS ecosystem? Yeah, sure. So Babylon was. The project was founded by myself and my co founder, Professor David Shek. Back in January 2022. Before we just founded Bottleneck. It was like Defi Summer. Where there are a lot of Defi applications and app chains. So, like, there are like hundreds of thousands of blockchains in the world. And each. Most of them are segregated with each other. So we have like, isolated islands of blockchains in the world. The problem of those such a blockchain ecosystem is that everyone just works independently. There's no interaction, very little interaction between different blockchain systems. So it is not actually very sustainable. So we came up with the concept of security sharing. Where the bigger blockchains empower the smaller blockchains and infrastructures through security sharing. By lending security to the smaller ones. So smaller ones become stronger and better. Okay, then through this security sharing vertical. We create a more unified and healthier, sustainable blockchain ecosystem. This is our vision behind the founding of the bottom project. Awesome.
Phased Launch Approach for Mainnet
Thank you. I was going to ask you. So a lot of people have had this question. What is the. I guess, the approach that we're using to make the main net and the way that it is, we're using a phased approach launch approach. And so people are asking, why are we using this approach for the Babylon Pos chain? Sorry, I didn't hear you very clearly. Could you please repeat the question? Yeah. Why are we using a phased launch approach for Babylon? Yes, sure. Okay. In case people are not aware of this phase launch, let me first explain what is this phase launch? What we are launching is called, is something called bitcoin staking, which allows bitcoin holders to turn their bitcoin into a stakeable asset for any of proof of stake systems so that they can provide security to proof of stake systems and earn staking reward. Okay, so this creates a two sided security sharing marketplace where the supply side are the security provided by bitcoin holders through their bitcoin. And the demand comes from decentralized systems such as PoS chains, app chains, ethereum, rollup bitcoin, rollup oracles and da layers, etcetera.
Phased Approach for Market Bootstrap
Now, for every market to bootstrap, we need to start from somewhere. It's either the supply side or the demand side. Then we just use common sense and pick the supply side to bootstrap the market so that we have something on the table to offer. So this is the main reason why we decide to launch the bitcoin staking in a phased approach where in the first phase we will invite bitcoin holders to lock their bitcoin on the bitcoin chain and turn the bitcoins into a stakeable asset. Then in phase two, we will bootstrap the demand side by launching a bubble on PoS chain. So the Lisp PoS chain will become the first POS system that receives bitcoin security. Bitcoin staking security. Then in phase three, we will enable bitcoin multistaking so that bitcoin holders can use their bitcoin not only to just secure the bobbin PoS chain, but any other POS systems in the world. And after this three phase launch, we will have a complete bitcoin staking system which evolved gradually into a healthy and sustainable security sharing marketplace where demand and supply can freely match with each other and we have a deal.
Significance of Bitcoin Staking
Another reason for a phased launch is that bitcoin staking is a brand new utility of bitcoin. I'd argue that bitcoin staking is indeed the third native use case of bitcoin. First native use case of bitcoin is. Just hold it. Second native use case of bitcoin is to use it for simple payment. All other utilities of bitcoin so far in the market, they are not native use cases of bitcoin because they always need to make some assumptions on third parties. Bubble on bitcoin staking does not require any third party trust assumptions. So it is the third native use case of bitcoin. Because it is so significant, we want to enable this use case very carefully. So this is also the reason why we will launch the bitcoin staking protocol in a phased manner.
Community Questions on Phased Launch
Okay. Is it okay if I ask you two community questions that have to do with phase one and just all the phases right now? Any, any question please. Okay, so one of the questions I'm seeing for phase one is people are asking for the testnet that just occurred. There were some caps and then, you know, it was a cap that was a smaller size for the test token BTC. And then I increase. They're wondering if it's going to be the same with this mainnet phase one. Yeah. As we already mentioned in our mainnet launch announcement, we will have. So when we launch tomorrow, there will be a 1000 bitcoin cap. So we will also use a capped approach for our phase one launch. And I guess they're saying, so there is a cap, but then they're wondering if it will increase at all like it did in the testnet. Yes, you will increase. Okay, perfect.
Timeline for Future Phases
And then the other question that I see from the community is do we have a rough timeline of like when phase two would be happening, when phase three would be happening? Yeah, that depends on many factors. So the primary factor would be how the bootstrapping of the demand of the supply side will turn out in phase one. So I cannot give you an accurate estimate, but what I can say is that there are many projects that somehow ask their users to lock their asset for like year or even years, more than a year. That's not our intention. Okay, awesome. Yeah, I think the community wanted to know these questions, so I'm glad that you were able to answer them. I want to, since we talked about the Tesla a little bit, let's kind of talk about that experience for users.
Participation and User Insights from Testnet
Could you provide some participation and user growth insights from the testnet? Yeah, sure. So with BTC staking, we launched two testnets this year, testnet three and Testnet four. And if you have participated in both of them, you will notice that there's a difference. Testnet three has both bitcoin signethe has a bitcoin component in it and also a bobulum pos testnet in it. So it is actually similar to what the phase two will look like. And then we decided to do a phased launch on the mainnet. So in Testnet four, the Testnet four mimics the phase one launch. So Testnet three has Bobby and chain. Testnet four does not have bob launching. In Testnet three we were super successful. We received over 100k stakes within 48 hours of its opening which will force us to turn it off. Testnet four was also super successful and over a course of about one month we received over half a million stakes, which really helped us stress test the phase one system.
Addressing Technical Challenges
And also there have been quite a few very technically strong community members that helped us to find boxing inefficiencies which we have all solved before the launch. So thank you so much lovable community. Yeah, those kinds of. Part of my next question during these testnets, was there ever any technical challenges, if any, that we encountered and how did we address them? Yeah, technical challenges. Yeah, there are always technical challenges. One particular type of challenge is to listen to community feedback and quickly adapt to it. I can give you an example. When we first launched Testnet four, when people try to submit their staking transaction fee is fixed, then the community provides us feedback. Let's say, hey, this is transaction fee is too high and I don't have enough signet token. I wish, I wish it could be customizable.
Responding to Community Feedback
And we hear the community, our team totally agree that this is a very, it's not absolutely needed feature, but it's absolutely very nice to have feature. So it is not as easy as just allowing the user to put in a transaction fee and click the button. It requires us at the backend behind the scene to actively monitor the bitcoin mempool space and the past bitcoin transaction fee data so that we can make a sensible recommendation to the users. Like at what fee rate, what's the likelihood of your transaction being included in which block? Very high priority, medium priority, low priority. So for every seemingly very simple request from the community there are a lot of engineering efforts needed in the background and we need to act very fast. So this is an example of the technical challenges. Yeah, a lot of people, hopefully we responded to the community in a nice way.
Mainnet Overall Strategies
Yeah, I was going to tell you, a lot of people in the community are happy that their voices are being heard. Like when they talked about the fees that we had originally had for Mainnet and then we looked back at it and you know, and changed that they do feel heard. So we do take community input very seriously. So that's pretty nice and they do feel heard. So I wanted to talk more about actual Mainnet now. What's the reason that we decided on 1000 bitcoins to stake to start with as the cap? Yeah, sure. Yeah. Many people just thought we'll just open bitcoin staking so that we can accept unlimited number of bitcoins, but that is not secure.
Initial Stake Cap and Security
As I mentioned earlier, bitcoin staking is the third major use case. Major and native use case of the bitcoin. We want to take small and concrete steps to enable this use case. So because this is the first time it goes to the main net level. So we would like to limit the volume to a reasonable amount. So 1000 bitcoin. So we decided to limit the number of bitcoins we take. How does the bitcoin staking protocol take to only 1000 bitcoins? So that in case in. Yeah. In a very unlikely black swan event. Yeah. The damage is still manageable. Okay. Yeah. That makes sense just to, you know, be tread carefully pretty much. So that doesn't make sense.
Evolving Bitcoin Staking Protocol
And we already answered if it will evolve during the phase one and we said that it would increase slowly afterwards. Is there, now that you're mentioning, you know, in case there's a black swan event, what are the risks for users who stake their BTC? Okay.
Common Risks for Bitcoin Holders
For the risks of. To the bitcoin holders? Okay. There are common risks where you say you private, you didn't, you don't manage your private key properly. So you lost your private key or private key got stolen. So that's beyond the bobbin bitcoin staking protocol. Within the bobbin bitcoin staking protocol, in phase one, we do, very importantly, in phase one, we do not enable slashing. That means the staker does not sign anything related to slashing. So in theory, there's no. It is impossible to be slashed in phase one. So in a worst case scenario, the bitcoin will be locked.
Security Measures for Bitcoin Stakers
And until the time lock expires, the bitcoin stakers can get the bitcoin back. So even if the entire world is compromised, as long as bitcoin chain is safe and live, then we have the time lock in the script that allow the bitcoin holders to eventually get the bitcoin out. Yeah. Okay. Yeah. Cause it seems like some community concern was like, can we lose our BTC? Can our BTC get stolen? And so that's one of the questions that we see sometimes in the community. Yeah. So, well, as the protocol is designed, it is self custodial. So no one, absolutely no one can steal the bitcoin from the bitcoin holders to their own pocket.
Protocol Assurance and Security Audits
Yeah. In practice, there could be bugs in here and there. No, no system is perfect. Right. But we have done extensive security audits and both by very reputable security auditing companies and also public security research campaign through container and we solve all the issues the security auditors have found. So our, I would say our code is highly reliable. Yeah, that was pretty cool that we released those also those audits. So, yeah, we do want users to know that, yes, they're still in control of their bitcoin and so they're not at risk of being lost and stolen.
Finality Providers and Their Role
How are the finality providers selected? Could you explain a little bit more about their role and how they are incentivized to act honestly? Yeah, sure. Okay. Finality provider is the name for the validators backed by bitcoin. In any proof of stake system or in any decentralized system, there are validators. The validators are the ones who maintain the blockchain by proposing blocks and validate blocks and vote for blocks in a proof of stake system. Validators are chosen based on the stakes they have received in bitcoin. Staking finality providers are a special type of validators who receive bitcoin as the staking asset.
Selection Process for Finality Providers
Okay, so this is the definition of financial provider at the protocol level. Now, the selection of finance provider, I wouldn't say the problem core team selected. Finally, provider. Rather we just invite all the financial provider entities or validator companies or teams of personnel that have participated in our previous testnets to join the Mainnet. So it's not like we have a centralized selection mechanism that only allow our favorite financial providers join. So for anyone who joined testing three and have left their security contact, we reach out to them and invite them to join the mainnet.
Legal Verification Process for Providers
And to prevent legal issues such as any anti money laundry concerns, we do KyB on those family providers to make sure we know who we are dealing with. So this is how your primary providers are curated and verified. So Fisher, another question I see about finality providers typically being asked is, hey, weren't part of the testnet. We kind of got late to the game. Is it possible for me to join the set whenever it goes live? When it goes live means phase one goes live or phase two goes live? Because whenever the answer will be different.
Joining Financial Providers in Different Phases
Let's answer both then. Let's answer for phase one and phase two. Yeah, sure. So for a financial provider to join phase one, we require it to have participate and at very least cas net four, so that we know that they know how to operate a financial provider. So if you, if a financial provider has not participated in Testnet four, it's unlikely that it will be accepted, but it just means this financial provider will not be properly displayed in our official staking website. With its name, public key and commission rate displayed, they can still accept bitcoin stakes as anonymous provider and the public key will still be picked up by our system so that the staking system will acknowledge the existence of such financial providers.
Consequences of Non-Registration
It's just that without this registration and display of the commission rate, the financing providers will not share any points earned from the stake. So all the points will go to the stakers. Gotcha. Gotcha. Awesome. Thank you for answering those. So we also have a covenant committee. Could you tell us a little bit about how they're selected? Will that change? Will members rotate over time? How does that going to work? First how it works and then just the selection? Yeah.
Understanding the Covenant Committee
So covenant committee. So covenant committee. At first glance, people will say, oh, this is a multi sick, it's bottom a multi seq, a bridge or l two projects as many other bitcoin ecosystem projects. The answer is no, Babylon is not an l two project. Babylon is not a bridge project Babylon is not a multi seq project. Then what is this Kalbin committee? This covenant committee, they do not have any control of the users bitcoin. They just call sign bitcoin staking related transactions with the staker to enforce some rules of the stake.
Role of Covenant Committee in Staking
For example, in phase one, it will make sure when the user try to unbond. The unbounding time, which is written in the bitcoin script is at least seven days, which is 1008 bitcoin blocks. So its main job is to make sure the number 1008 it's written in the bitcoin transaction. If you seize this number, it will sign. Also in phase one, it has a side duty of checking the validity of your unbounding transactions to make sure once the stake is unbounded, it actually goes back to the staker and not anyone else.
Additional Duties of the Covenant Committee
So can you think of it as like last gatekeeper before the bitcoin become free bitcoin? In phase two, the Kalman committee will have an extra duty of enforcing the slashing destination. And when bitcoin is slashed, maybe I should explain slashing first. Slashing is a definitive feature of a staking system because without slashing, then there's no deterrence to low validators or financial providers when they try to act maliciously. So slashing is needed for a staking system to make sense.
Purpose of Slashing in Staking
So when bitcoin is slashed, if the staker is malicious, then there's a question of where does the slashed bitcoin go. Okay, the bitcoin, the slashed bitcoin to go to a predefined burn address or slashing address rather than be withdrawal by any arbitrary party to their own pocket. So in phase two, the carbon community, its duty is to make sure the slashed bitcoin does go to the slashing address by cosigning the slashing transaction with the staker. So this is the role of the common community.
Summary of Covenant Committee Roles
So phase one, enforce the unbounding time. Phase two, enforce the unbounding time plus selection destination. And in phase one, it has the side duty of checking the correctness of the unbounding transaction to make sure the bitcoin goes back to the stakeholder. Now, in terms of the selection of the covenant committee members. So because bitcoin staking, it's a massive project that touches many sectors of the industry, we invited reputable teams from different sectors of the industry to become the government committee.
Covenant Committee Member Selection
For example, we invited out layer, which is renowned Robert as a service provider. And we invited Coin Summer, who is affiliated with one of the most powerful bitcoin mining pool and one of the most powerful POS data service provider. And Zelik is a top tier security audit for firm. So yeah, this is how we select the current communities. And are we looking to rotate that over time? Yes. Yes, we will. And indeed, as the project progress and evolves, we would like to expand and rotate the common computing.
Point System in Phase One
Okay, that's interesting. So a lot of people are wanting to know about this point system. Could you dive a little bit deeper into the phase one point system? And how will it benefit users in the long run? Okay. Yeah. So because we use a phased launch. So in phase one there's no staking reward, unlike in phase two, there's a bobbin chain that accept bitcoin security and provide staking rewards. In phase one, there's no staking rewards.
Mechanics of the Point System
So instead, in order to track the contribution activity of bitcoin stake, we introduce the point system. So the point system works in a similar way as staking reward, where for each bitcoin block, there's a fixed number of points granted. And the granted points within each block, it's proportionally shared by all the active stakes within this bitcoin block. This is how the point system work. So a benefit of this system is that you will protect the stakers from someone who have a lot of bitcoin coming very late and dilute everyone else contribution because the points granted in every block, it's fixed.
Clarifying Points Accrual and LST
Okay. And there was a couple questions about the points. So, can I give you some scenarios, and then you can answer to the best of your ability about the points? Sure, please. So one of the scenarios that were given is if I'm staking and I receive some points, and then I decide to unbond, do I lose all the points that I accrued? No. Okay. So it would stay attached to your address. Yes.
Impact of Liquid Staking Tokens
And then one that I believe already know the answer to. But they were saying, if they use an LST to stake, would they be getting points from Babylon, or would it be a different set of points or whatever the LST provider they've chosen. So if someone participates in LST, then they do not directly participate in bubble bitcoin staking, because the staking and the point are both handled by the LST project, not by the bitcoin holder. So what the LST does with the stake and the points are up to LST, not up to us.
Understanding Liquid Staking Tokens
So I don't have a, I cannot comment on what will happen to the bitcoin or to the point because it's totally up to the NST. Yeah. And so one of the questions we also had is like, they want to know more about lsts. What exactly are they, what caps do they have? Or just more questions wanting to know more about LST. Some people aren't sure what those really are. Yeah. LST is a, it's the abbreviation of the liquid staking token.
The Concept of Liquid Staking
Okay. What is liquid staking token? When. When you participate in bitcoin staking natively. Okay. You will lock your bitcoin on a bitcoin chain, which means during your staking period, your bitcoin is not movable, immobile, you cannot use your bitcoin for anything else. So it is not liquid, it is locked. So there are. So this liquid staking concept will try to release the liquidity of the token instead of making it locked.
Comparing Liquid Staking Across Ecosystems
So the concept is not new to bitcoin. You can find liquid staking protocols, indeed, a lot of liquid sticking protocols on other ecosystems, such as Ethan. When you stake on eth, your eth is locked. Okay? But if you stake through some liquid staking providers, such as lido, then lido will stake your eth for you. And meanwhile, lido will issue you a lido version of Steve allows you to have this synthetic, if that you can do other things which will hopefully work in a similar way as your native, if this is called liquid stake.
Returning to Native Tokens
And then when you want to get your native token back, you return the synthetic token or the liquid token back to the liquidity provider. And then the liquidity provider will give your native token back. This is a liquid staking token bitcoin. Yeah. So it gives you a native bitcoin to the liquid staking protocols. So they will stake your bitcoin for you. And you will get some ST BTC, liquid BTC that you can use in some other smarter chains.
Final Clarifications and Questions
And when you want your bitcoin back, you return those liquid tokens back to the LST project. Then you get your bitcoin. Okay, so I have a couple more questions left. I am going to open up the floor in case anyone wants to come up to ask Fisher any questions.
Challenges and Opportunities for Babylon
So before I do that, though, Fisher, with the release of Mainnet, what do you see as Babylon's biggest challenges? And what opportunities in the next few months do you see for us? Yeah. Let me first address the opportunity part. In phase one, we unlock the supply side. In the meantime, our team is working very closely with the ecosystem partners to unlock the demand side. So we have many ecosystem partners who are interested integrate with bobland for bitcoin staking, cosmos chains, etherapps, bitcoin roaps da layer and oracles. Okay. So with this opportunity comes with a challenge. The challenge is that the technical stack of those systems are so diverse that in order to create this marketplace so that we allow any of such system to be integrated, there are a lot of design and engineering works needs to be done both at the blockchain level and the UI UX level.
Ensuring A Better User Experience
So that we can bring the best user experience to the bitcoin holders. So that they can freely choose which POS systems they want to stake and secure to, and receive and receive the staking rewards. So this is the biggest challenge. And we are working very hard towards that. That's really exciting. So I know that we've talked about the roadmap for Babylon. I know that up ahead, sometime in the future, there'll be BTC data availability, BTC liquidity Marketplace. What do you envision for Babylon in the next 510 years? Yeah, sure. So the vision of the Babylon project is to build a bitcoin secured, decentralized world. And the way we try to achieve this is to design bitcoin security sharing protocols. And also bring more utility to invent more native utilities of the bitcoin.
Future Developments for the Babylon Project
Okay, so bitcoin staking is just one of our protocols towards this. After bitcoin staking, we will continue to do research and development on new protocols. As you mentioned, like the data availability layer, trustless bridge, bitcoin liquidity marketplace and beyond. Eventually, we would like to see bitcoin to be the cornerstone of the entire blockchain world. And we have a very unified, interconnected, interoperable blockchain world. And this blockchain world, it's also well connected to the more traditional world. It's no longer just, these are crypto. Those are not crypto. And eventually, we hope everyone in the world can enjoy blockchain technology and use it. That's really exciting. Can't wait for that time to come.
Community Engagement and Questions
Those are the questions that we had here from Mainnet. Hopefully, we've answered questions that people had. And the floor is open for anyone to come up and ask Fisher any questions. I do see one person requesting Fisher. This is always tricky. So just in case, I'll have my trigger finger ready, and we'll see how it goes. So let me allow this. Let me allow this user to come up, and then we'll see how it goes. Looks like his name is Monaj, and he's. He's connecting right now. But, yeah, I'm so excited. We're only a day away, Fisher. All right, so, Minaj, you have the floor. Go ahead and ask fisher a question. I'm also allowing another person to come up. So, Nali, so if cannot speak, we'll let him get down the stage.
Questions About Bevel Chain and Tokens
So, Nali, do you have any questions? Hello, sir? Hello? Yeah, we can hear you, sir. I want to know about TG or bevel chain. Can you say something? Can you reveal something about that? I want to know about bevel token, upcoming tokens and about rewards, upcoming rewards. And something about you want to rebuild. Can you say something about it? Okay, sure. So in phase one, there is no bubble chain. Okay. What we are going to launch tomorrow, it does not have bob lung chain. So it does not have any problem token. So Boblun token will only become available in phase two. And the bobbin token will be a pos chain token.
Understanding Staking and Token Availability
So you will have staking rewards that goes to the bitcoin holders. Yeah. So I have a more question. I want to know when it will launch Babylon token. Oh, as I explained earlier, it depends on many factors. One of them is how the phase one bootstrapping will go. I cannot give you any accurate estimate of when the phase two will happen. One, the only thing I can say is that unlike some other projects which ask people to lock their asset for years, that's not what we are going to do. Okay, sir, thank you for your answers. And I want to know, sir, page one will take how much time is for you.
Clarifying Phase One Duration
Are you asking about the length of this one? Yeah, length of this one. How much time it will take? As I explained to you, I cannot give you an estimate. The only thing I can tell you is it will not last years. Okay, sir? Yeah, sorry. Thank you. All right, so if anyone else has questions, you're free to come up to ask them. Yeah. Those are questions that the community has been asking a lot, so I'm glad that you were able to answer those. Other than that, I don't. Let me check the questions here on the chat to see if there's any other questions. Some people would leave questions in a reply.
Additional Questions from the Community
Yeah, the points. Okay, so let's see here. Yeah, we've already answered a lot of these questions. Okay, so I see one that's asking, will we provide a video to show people how to stake? The answer to that is yes. We will be providing a video for a tutorial for you guys to stake if you're going to be using LST. They also have videos on showing you how to stake via their platform. And so. Okay, we have James asking to come up to the stage right now. So let me let him in real quick. Eric, there are a lot of. Quite some questions in the comment section of the thread.
James' Questions and Technical Challenges
Yeah. Hey, James. Hello? Hey, James, can you. Can you hear us? Yeah, we can hear you. Hello? Yes, James, we can hear you. Yeah, we can hear you, James. Yeah. Okay. Yeah, sorry, I'm out. Just a quick question. That game as well. So why does case have a BMV or gabapento? Right, right. You mean why there is a bob token? Okay. Bobbin is a PoS system in BTC staking. It's on top of the base consensus of the bobbin chain. So Bob Lung is a tandemint Cosmos SDK based chain.
Explaining Bobbin and Staking Mechanisms
So it has its own consensus, which is the tandem consensus, which is powered or secured by the native token. And then on top of that, we have bitcoin staking security, which adds another round of security called the finality round. And this is why the bitcoin backed validators are called financial providers. So. Hello. James, did you get that? Might be having some technical issues with James. So, Fisher, we do have a community question. It says, when you stake your babylon, do you have to give up your custody of your BTC? And if so, what guarantees are put in place for protection?
Custody and Protection During Staking
No, bitcoin staking is trustless and self custodial. You don't give your bitcoin to bobby team? No. We don't have any access to your bitcoin. In terms of protection. There is a time lock in the bitcoin script so that even if the entire world is compromised, as long as bitcoin chain, it's still there. You can get your bitcoin back when the time lock expires. Perfect. Thank you. So I'm going through the questions. A lot of these we've already answered. They're asking about token, they're asking about points.
Final Questions and Fee Structures
So I'm not seeing any other ones that we haven't answered already. There are some questions in a tweet. So there's a question called, asked by someone called Nanda one. In phase one, it's guaranteed that fees will stay as low as possible to deposit bitcoin during phase one launch. Okay, now to clarify, the staking transaction fee is not set by the bubble team. As I mentioned earlier, we allow the user to specify their staking transaction fee. So it's totally up to the staker how much transaction fee they want to pay to bitcoin miners to get their staking transaction to be included.
Dynamic Fee Adjustments and Staking Process
You can set it to a very low number or you can set it to a very high number. It's totally up to you. And if already pre staked through P stake finance or Lorenzo, will our bitcoin be staked? The answer is no. This pre stake does not mean your bitcoin is already staked to the bottom of BTC staking protocol because the staking has not opened it. That's right. Yeah. There's no guarantee that those bitcoin will be staked. So in our bitcoin staking system, everything is first come, first served.
Transparency and Fairness in the Process
So it's very fair and transparent. There's no special allocation or guaranteed spot for any entity or any personnel. Awesome. Thank you, Fisher. Another community question is, we observe fees lowered after community feedback, yet they are still fixed. So kind of what we're mentioning right now, would it be possible to make it more dynamic as enabling? Three options like, you know, you normally see, like slow, normal, or medium.
Explanation on Customization Restrictions
Okay, so I would like to first explain why it cannot be customizable. Because once a stake enters an unbounding state in a complete bitcoin staking system, it is still slashable. So there will be a seven days period where your stake is not active and it is still subject to slashing. Okay, now, once you enter the unbounding state, the amount that is, the maximum amount that is slashable is equal to the stake amount minus the unbounding transaction fee. Okay. If we allow the use the staker to freely set the unbounding transaction fee. Then the staker can set the unbounding transaction fee to be very high, say equal to the stake amount. Then the entire stake will go to the bitcoin miner who includes this unbounding transaction in the bitcoin block and zero BTC will be slashable. That means this stakeholder malicious staker can actually dodge slashing by colluding with bitcoin miners so that it has zero slash ability and it can get its bitcoin back from the bitcoin miners by paying, say by paying bitcoin miners some commission or kickback. So we. This is against the design of a PoS system. So the unbounding transaction fee cannot be customizable. Thanks.
Technical Overview on Different Tiers of Transaction Fees
And in terms of whether it is possible to set different like tiers of transaction fee, technically it is possible, but similar to the customizable staking transaction that requires a lot of engineering work and may introduce new vulnerabilities. So it has to be very carefully started before such features could be considered. Thank you. Fisher Sawyer, I see you up here. Do you have a question for Fisher? Yeah, we can hear you. Yeah. Thanks for the whole thanks feature. Yeah, this is Sawyer from Apple Oracle. I'm also building the tech ecosystem. Yeah, I just have a very simple question because I hear that there will be more than like 1010 or 15 projects launched together with the Babylon mainet like Lorenzo and the others you just mentioned. I. So can you briefly share some information about this project or how do you choose and combine like what pumps can they bring with bubble? Oh just clap. Okay. The answer to this question is very simple. We don't pick LSD projects. Bob, in terms of liquid staking protocol, there are things, they are protocols built on top of problem. We don't have any control of it. We cannot, we are, they don't have any ability to accept or reject any of that. So it is completely independent of the popular protocol.
Concerns About Stake Overflow and Finality Providers
Gotcha. Totally understand. Because we are also very looking forward to the, to this project because there are the new applications with the. Okay, that's of course my question. Thank you so much. Thank you. Thank you. Thank you, sir. So fish, another question I see is in tomorrow's launch, if I stake at the very first possible second, do I risk being overflow due to being front run by later stakers with higher paid fees? Let's up to the bitcoin miner to decide which bitcoin, which staking transaction they include in the bitcoin chain. So from Bobland bitcoin staking protocols perspective, we just look at the staking transactions starting from the first block and count the amount until the 1000 bitcoin cap is reached. Okay. Yeah, so I see another question about finality providers. This user says, I followed guides for creating your own finality provider. However, instructions weren't that clear to me and it seems that I have to pass a kyb and get approved. Will this be more open in the future? Similar to how anyone can deploy nodes in other projects?
Future Decentralization and Finality Provider Control
Once we launch phase two with the bottleneck chain, then it would become more decentralized. Okay, let's see here. I see a question by Brew and bro. Are we going to revise a list of finality providers for each phase one, two and three? What? Sorry, revised. Are we going. Are we going to revise a list of finality providers for each phase? Phase one, phase two and phase three revised. No, I don't think. I don't see any reason why anyone wants to revise. And also, we don't control the financial providers. If so, if a financial provider wants to revise their own name, public key, or they want to drop out, resign, that's their freedom. We don't control those finding providers. And one common question I'm seeing here in the comments is asking about the pioneer pass nFt. They're just wanting to know if there's like. Let me read an actual question for a minute. What's the use case for the pioneer NFT? I cannot answer that question here. I'm only answering phase one launch related questions.
Participation Limits in Bitcoin Staking
Perfect. Okay, let me see if we see any other questions they're asking. See, I don't think this would be one. It says, do we have any info about phase two deposit limit? I don't see us having any answers for that one either. No, I don't think I have any answer to that. I don't even know what that means. Okay, so here's a question. Do you anticipate a rush to stake? And once full, when will the next wave be open to stake. Will I expect any rush in staking? Yeah. Yeah. Okay, so from what we have observed, it seems cap one will be quite popular. So I would like to urge everyone to participate irreasonably. Don't, don't rush. Babylon is a very long term project and there will be amp opportunities to participate. So please don't rush and don't fight any. Any war, I guess. War. Don't. Please don't. Okay, and another question. I'm seeing Fisher is what made us decide what the max and minimum BTC staking limits were.
Setting Staking Limits
Yeah, sure. So we set a minimum because the staking involves quite a few transactions. So the amount of the amount you stake should at least be able to cover the transaction fees. So this is mainly serve as a limit to make sure people can participate in a system in a responsible and reasonable and rational way. And for the maximum, the minimum is set to 0.005. Okay. The max is set to 0.05. People may. Yeah, we receive complaints actually from Wales and big bitcoin holders. Why are you setting it to such a small number? I want to stake a lot. Indeed. This is exactly the reason we set the maximum to be a small number, so that we will maximize the opportunity for more people to participate and evaluate bitcoin staking rather than a few big whales and institutes. Take the entire cap and squeeze everyone out. By setting a small max, the 1000 bitcoin cap will need at least a few bitcoin blocks to fill. Okay.
Ensuring Broad Participation in Staking
So that no one can just collude with a miner and take the entire cap. And no whale can just stake just a few transactions and take the entire cap. So the very small maximum is really to boost a broader and genuine participation from the ecosystems. Okay, thank you. And here's another one I see. Will you be able to stake from a cold wallet? Cold wallet? That's hardware wallet. Okay, this is a very good question. So so far the only hardware wallet supported is Keystone wallet through QR code scan. Please do not use any hardware wallethood in any moves. For example, you should not, absolutely not connect your ledger wallet in any way. Like OKX wallet allow OKX software wallet extension wallet allow you to connect to ledger. Okay, but please do not do that. It will cause if you use any hardware wallet, it will cause your bitcoin to be like permanently not withdrawable.
Current Staking Compatibility with Hardware Wallets
We are working with other hardware wallet manufacturers to make the bitcoin station compatible, but at the current stage, you should not use hardware wallet. Yeah, that was a really important question. I'm glad they asked it. Okay, let's see here. People have their BTCs and other assets safe and secure with them in their hardware wallets. How would you encourage users to stake their tokens with Babylon? How would you ensure their asset security? And what would be your primary approach to onboard them as users as you can? You mean users who have their bitcoin in hardware wallet? Yeah. Yeah. So I think it's up to them first, they should not use their hard wallet to do staking. And if they want to stake, they either have to use our technically savvy command line tools or transfer the bitcoin to the supported wallet software wallet.
Onboarding Users to Staking Process
Okay. Yeah, for now they're, yeah, please, please don't use hardware wallethood. Yeah, 100%. Okay, so here's a question on the tax fees. Did we do a study on potential impact of tax fees? Did we look into that before we decided tax fees? What's tax fees? TX fees, like transaction fees. Transaction fees. So, yeah, okay. Yeah. The staking transaction fee, depending on how congested the network will become when we open the captain, an unbounding transaction fee. As we mentioned in our earlier tweet previously, we set a very relatively high unbound transaction fee so that, like, with the probability of 99%, your unbounding transaction will be included in the next block or within the next two blocks.
Transaction Fee Analysis and Predictions
And then we lowered it to a more moderate transaction fee so that the probability of being included in the next or next two blocks is still 90% plus. And with the probability of 99%, the staking, unbounding transaction will be included in a bitcoin train within one day. In all its analysis, it's based on the past data and past data, and it's not indicated of the future. We can we just make our best educated guests here. Awesome. Awesome. Thank you, Fisher, so much for, first of all, talking to us about Mainnet and then being willing to answer community questions. I know those aren't always easy, but you've handled it like a champion. So just thank you so much for your time today. Yeah, thank you so much, Eric.
Wrapping Up the Discussion
Thank you so much, everyone, for listening in. It's been a blast. It's really excited. We're less than 24 hours away now, so can't wait to see how it goes for us. Thank you so much, everyone. All right, everyone, Mainnet, less than 24 hours. Get your bitcoin ready.
