24/7 Cryptocurrency News

Babylon Kicks Off Phase-2 Testnet With These Staking Features

Babylon launches Phase-2 testnet on January 8, with Bitcoin PoS staking, faucets for test funds, and new features for developers and stakers.
Published by
Babylon Kicks Off Phase-2 Testnet With These Staking Features

Highlights

  • Babylon Phase-2 testnet launches on January 8, 2025, featuring Bitcoin PoS and staking upgrades.
  • Faucets provide test Signet BTC and tBABY tokens for Phase-2 participation starting after launch.
  • The Staking app enables migration of Phase-1 stakes and new Phase-2 stakes with fast unbonding.

Babylon has officially announced the launch of its Phase-2 testnet, known as bbn-test-5, set to begin block production on January 8, 2025, at 9 AM UTC. This phase introduces an upgraded staking web app and focuses on testing new functionalities within the Babylon Proof-of-Stake chain. The testnet emphasizes interoperability and collaboration among key protocol participants.

Advertisement

Key Features of The Babylon Phase-2 Testnet

According to a recent blog post, the Babylon Phase-2 testnet will include a Proof-of-Stake chain secured by both Bitcoin PoS stakes and Signet Bitcoin stakes. This will incorporate both existing stakes from Phase-1 and newly created ones. Participants can register their Phase-1 stakes using the upgraded staking web app, which goes live at 10 AM UTC on January 8.

The new testnet will allow developers, stakers, and other participants explore the registration of Phase-1 Signet Bitcoin stakes for Phase-2 operations. The testnet encourages collaboration among stakers, wallets, and developers by supporting the deployment of permissionless smart contracts. However, the tokens involved in this testnet are simulated and hold no monetary value.

Moreover, it is important to note that BOB recently integrated with Babylon to leverage Bitcoin finality for securing transactions. This integration uses Liquid Staking Tokens (LSTs) to enhance Bitcoin liquidity in DeFi while retaining the robust security of Bitcoin’s blockchain.

Advertisement

Faucets and Testnet Participation

To enable participation, the Bitcoin staking network has provided testnet faucets for acquiring the necessary funds. The faucets will distribute test Signet Bitcoin and tBABY tokens after the testnet launch. Signet Bitcoin, available through the Discord and OKX faucets, will be used for creating new stakes. Similarly, the Discord faucet will distribute 0.3 tBABY tokens per address weekly.

Additionally, the staking app enables migration of Phase-1 stakes to the Phase-2 testnet. New stakes can also be created, and the app provides fast unbonding times of approximately 16-17 hours.

Advertisement

Staking and Validation in The Bitcoin PoS Testnet

Participants in the Babylon Phase-2 testnet include stakers, finality providers, CometBFT validators, and wallets. Stakers can register stakes through the staking app or CLI tools, while finality providers ensure network security by casting finality votes. CometBFT validators participate in block production, contributing to the consensus mechanism of the Bitcoin PoS chain.

In addition, stake limits for Phase-2 have been established to prevent spam and manage stake flow. Transactions require a minimum stake of 0.0005 Signet Bitcoin, with a maximum stake of 350 Signet Bitcoin per transaction. The active set size for finality providers and CometBFT validators is capped at 100 slots each.

Notably, participation in the Phase-2 testnet is restricted based on jurisdictional and regulatory considerations. Individuals and entities from sanctioned regions, including U.S. residents, are prohibited from participating. 

More so, last month, crypto exchange Binance revealed its plans to debut On-chain Yields, starting with Babylon BTC Staking. This initiative allows users to stake BTC and earn rewards directly through the platform.

Share
Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Fidelity, Grayscale, VanEck Dump Ethereum Amid ETH Price Crash

Ethereum (ETH) price fell sharply as Fidelity, Grayscale, and VanEck drove heavy ETF outflows, but…

September 6, 2025
  • 24/7 Cryptocurrency News

Ethereum Treasury Firm SharpLink Confirms Compliance Amid Nasdaq Oversight

SharpLink has reaffirmed its full compliance with Nasdaq rules, dismissing speculation about shareholder approval requirements.…

September 5, 2025
  • 24/7 Cryptocurrency News

Trump Media Acquires 684M CRO for Cronos Treasury, Strikes Deal with Crypto.com

A deal with Crypto.com has led to the establishment of a Cronos Treasury by the…

September 5, 2025
  • 24/7 Cryptocurrency News

SEC and CFTC To Host Roundtable To ‘Harmonize’ Regulatory Frameworks for Crypto

The SEC and CFTC have announced a roundtable as they move forward with plans to…

September 5, 2025
  • 24/7 Cryptocurrency News

Hyperliquid Announces Plans to Launch USDH Stablecoin, HYPE Price Climbs

Hyperliquid has stated that it plans to use a validator vote to roll out its…

September 5, 2025
  • Bitcoin News

Breaking: U.S. Jobs Data Comes In Below Expectations, BTC Price Spikes

The August U.S. jobs data again shows that the labor market is weakening, with the…

September 5, 2025