Babylon Proposes BTC-BABY Co-staking To Cut Inflation

Babylon has proposed a governance shift to reduce annual BABY token inflation from 8% to 5.5% while introducing BTC-BABY co-staking.

Under the plan, inflation would be split between Bitcoin stakers, BABY stakers, and co-stakers, with rewards boosted for those pairing both assets.

The proposal, posted September 29, seeks to slow BABY supply growth by about 30% while sustaining incentives.

With $6.38 billion in Bitcoin already staked on the protocol, the new system aims to transition Babylon from adoption bootstrapping to long-term sustainability.

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