Babylon Labs Prepares for Bitcoin (BTC) Delegation Event (Cap-2), Anticipating Increased Transaction Fees
- Susan SarandonOriginal
- 2024-10-09 04:38:091007browse
The event will have a minimum limit of 0.005 BTC for deposits, while the maximum is set at 500 BTC.
Babylon Labs is gearing up for its upcoming Bitcoin (BTC) delegation event, known as Cap-2, which is expected to begin on October 8, as indicated by the rapid block production, ahead of its initial scheduled date of October 9.
This event, which follows the last session that saw a significant increase in BTC transaction fees, is likely to lead to a similar phenomenon this time around. Users will be given a window of precisely 10 blocks to make their deposits. Notably, the current fees are averaging $1.19, with minimum values around $0.84, reflecting a decrease in network congestion after a drop in the use of applications like Ordinals and Runes.
⏳ The countdown is on! ⏳
Get ready to stake your BTC— We’re about 6 hours away from the Cap-2 launch!
⏰ Estimated start time: 7PM UTC
— Babylon (@babylonlabs_io) October 8, 2024
However, the Cap-2 event is anticipated to drive up fees, which could reach levels above $7, as observed during the previous session. This surge in fees is attributed to the increasing demand from users seeking to capitalize on the opportunity to earn passive income through staking.
A Closer Look at the Babylon Event
The event will stipulate a minimum limit of 0.005 BTC for deposits, while the maximum is set at 500 BTC. Transactions will be accepted until block 864799, and any deposits that do not reach this block will incur an additional fee of 0.00032 BTC to unlock the funds.
Babylon Labs is focused on providing a non-custodial staking mechanism, which ensures that users retain complete control over their assets throughout the process. During the first staking session, a total of 18,187 depositors contributed 1,000 BTC, which were distributed among several finality providers. This delegation system enables the locked BTC to be utilized in voting on protocol finality, and any malicious actions will result in a reduction of the funds.
A Layer 2 Ecosystem for Bitcoin
Moreover, Babylon aims to establish a layer 2 (L2) ecosystem for Bitcoin, akin to those موجودة في Ethereum and Solana, without the need for a centralized coordinator. This approach aims to facilitate access to liquid staking capabilities on the BTC blockchain, strengthening its infrastructure and promoting adoption in the real world.
It's important to note that Web3-enabled wallets are required for participation in staking, which limits the eligibility to specific platforms like Bitget and Binance. Babylon is working to create a more dynamic and accessible environment for BTC users.
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