Babylon Phase-2 Testnet Launch

We are excited to announce the launch of the Babylon Phase-2 Testnet (bbn-test-5) on Wednesday, January 8, 2025.

Key Dates and Times

• Block Production: Begins at 9AM UTC on January 8, 2025. Once block production starts, finality providers and validators can register to the testnet.
• Staking Web App: The Phase-2 testnet staking web app (btcstaking.testnet.babylonlabs.io) will go live at 10AM UTC on January 8, 2025. The upgraded staking app will allow stakers to register their Phase-1 testnet stakes into the Phase-2 test Babylon chain. The Phase-1 testnet staking app (btcstaking.testnet.babylonchain.io, note the different URL) will allow users to monitor their Phase-1 testnet stakes until 8:30AM UTC on January 8, 2025.

Testnet Focus

The Phase-2 testnet will involve the launch of a test Babylon PoS chain that is secured by both Babylon and Signet Bitcoin stakes. Here, the Signet Bitcoin stakes include both Phase-1 testnet Signet stakes and freshly created Signet stakes. The primary focus is:

• Test the registration of the Phase-1 Signet Bitcoin stakes for Phase-2
• Test the Babylon chain’s operations alongside key protocol participants, including: Signet Bitcoin stakers, finality providers, CometBFT validators, covenants, vigilantes, Liquid (re)staking protocols, wallets, and dApp developers.

Please note:

• The testnet only involves test tokens (signet Bitcoin and test Babylon token) that are simulated.
• The testnet is NOT incentivized.
• The Babylon PoS test chain will be the only chain secured by Signet BTC in this testnet. There will be no other Bitcoin Secured Networks (BSNs) involved.

Ways to Participate:

• Stakers and Liquid (re)staking protocols: Register Phase-1 testnet stakes to the Phase-2 testnet and create new stakes. You can do this either through the Staking dApp (btcstaking.testnet.babylonlabs.io) or the Staker CLI.
• Finality providers: Register Phase-1 testnet keys into the Phase-2 testnet and actively contribute to network security by casting finality votes. Registration guide.
• CometBFT validators: Participate in Phase-2 testnet consensus to produce blocks. Participation guide.
• Wallets: Support the Babylon testnet chain and its test coin, and integrate with the Phase-2 staking web app. Wallet integration guide.
• dApp developers: Deploy CosmWasm smart contracts on the testnet chain to experiment with projects and ideas. To enable seamless experimentation, the testnet will involve permissionless smart contract deployment. However, this doesn’t in anyway indicate any configuration of any upcoming mainnet.

Testnet Funds

You will need the following testnet funds to participate on the phase-2 testnet:

• Signet Bitcoin will be used to create new phase-2 Signet Bitcoin stakes. Note that Signet Bitcoin stakes created on the phase-1 testnet can transfer without spending additional Signet Bitcoin. The following two faucets will give out 0.00102 sBTC per request, with only one request per address allowed.
  • Our Discord Signet Bitcoin faucet: Join the Babylon🔶🔒 Discord Server! (Get verified & gain access to our #faucet-signet-btc channel).
  • The OKX Signet Bitcoin faucet: OKX Faucet Center | Claim Your Test Tokens

• Testnet Babylon will be used to submit information about existing phase-1 and newly created phase-2 Signet Bitcoin stakes to the testnet Babylon chain. The Discord testnet Babylon faucet will give out 0.3 tBABY per address per week:  Join the Babylon🔶🔒 Discord Server! (Get verified & gain access to our #faucet-test-baby channel).

Note that all faucets will become available and distribute testnet funds after the testnet is launched.

Bitcoin Staking Details:

• Unbonding Time: The unbonding time will remain 7 days, same as in the Phase-1 testnet.
• Phase-1 Stake Registration Eligibility: During the first 72 hours, only Phase-1, Cap-1 stakes can register to Phase-2. Later, all stakes can register and new ones can be created. Note that stakes can register only if the finality provider they are delegated to is registered. Learn more.
• Phase-2 Stake Limits: For stakes created after the Phase-2 launch, the following limits will apply to prevent spam and manage stake flow:
  • Minimum stake per transaction: 0.0005 Signet Bitcoin
  • Maximum stake per transaction: 350 Signet Bitcoin
• Finality Providers Active Set Size: 100 slots.

Babylon Staking Details:

• Unbonding Time: Fast unbonding will be enabled by the Bitcoin Timestamping protocol, leading to an unbonding time of approximately 100 Bitcoin blocks after the unbonding is created (~16-17 hours on average). The unbonding time might be affected by Babylon Bitcoin Timestamp inclusion times.
• Stake Limits: None.
• CometBFT Validator Active Set Size: 100 slots.

Participation Eligibility

Participation is prohibited if you are:

(a) a resident or agent of, or an entity organized, incorporated or doing business in any country to which the United States, the United Kingdom, the European Union or any of its member states or the United Nations or any of its member states (collectively, the “Major Jurisdictions”) embargoes goods or imposes sanctions; or if you are, or if you directly or indirectly own or control, any person or entity that is listed on any sanctions list or equivalent maintained by any of the Major Jurisdictions; or

(b) a U.S. Person as defined in 17 CFR § 230.902, or currently or ordinarily located or resident in (or incorporated or organized in) the United States of America, Canada, Australia, or Mainland China.

This list may be updated from time-to-time without notice.

Legal Disclaimers

Testnet Purpose: The testnet is solely for the purpose of testing and collecting feedback. The organization of this testnet and any participation therein does not constitute an inducement, solicitation, or encouragement to undertake any form of cryptoasset activities. The testnet is not intended to promote any form of investment or financial transactions and the organizers do not provide any legal, financial, tax, or investment advice.

Simulated Nature of Testnet Tokens: Any testnet tokens are purely for testing and development purposes within the testnet environment. They are simulated digital assets, created solely for the purpose of evaluating, testing, and demonstrating the functionality of the testnet. These tokens are non-tradeable, have no real-world value and do not represent or confer any rights.

No Compensation: Participation in the testnet is voluntary and participants will not receive any financial compensation, fees, or any other form of consideration, either directly or indirectly, for their involvement in the testnet, the use of the testnet environment, or for any activities, services or feedback they provide during the course of the testnet.

No Ownership or Rights: Participants will not acquire any rights to the testnet, or any intellectual property as a result of their participation in the testnet.

No Representation of Final Product: The testnet is an experimental environment and there is no guarantee that the final product would not differ from what is demonstrated or available in the testnet. Any features, functionality, or performance in the testnet may not reflect the final version of the system.

Use of Feedback: Participants’ feedback, suggestions, or other information provided during the testnet could be used for the purposes of improving the system, product, or project.

Useful Links

1. Introductory readings: Bitcoin staking 101 series BabylonChain — What is Bitcoin Staking?
2. Babylon Node Setup guide: networks/bbn-test-5/babylon-node at main · babylonlabs-io/networks  
3. Finality Provider Registration guide: finality-provider/docs/finality-provider-operation.md at v0.14.1 · babylonlabs-io/finality-provider
4. Babylon CometBFT Validator Registration guide: networks/bbn-test-5/babylon-validators at 030a0c7b29b1156840383e09816b4187560c41e4 · babylonlabs-io/networks    
5. Wallet Integration guide: networks/bbn-test-5/integration/wallet at 030a0c7b29b1156840383e09816b4187560c41e4 · babylonlabs-io/networks    
6. Swagger API doc: https://staking-api.testnet.babylonlabs.io/swagger/index.html
7. Stake registration eligibility criteria: babylon/docs/stake-registration.md at v1.0.0-rc.1 · babylonlabs-io/babylon  
8. CLI Stakers registration: btc-staker/docs/register-phase-1-stake.md at a3ef19ab031dac11aee7983191095cbd632a04e3 · babylonlabs-io/btc-staker
9. Staking script specification: babylon/docs/staking-script.md at v1.0.0-rc.1 · babylonlabs-io/babylon  
10. To provide feedback or report bugs or issues:
    1. Forum: Babylon (Feedback & Support categories).
    2. Discord: Join the Babylon🔶🔒 Discord Server! (#feedback & #support channels).
    3. GitHub Discussions: Create a discussion

We look forward to your participation in this important testnet launch.

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