I caught the replay of Babylon's Quarterly Founders Call from July 30 while eating cold noodles at my desk, not really planning to write anything about it. $BABY @BabylonLabs_io kept circling "Native Bitcoin Backed Borrowing" as the big thing coming — fine, sure. But what actually stuck was something I went and checked afterward: the co-staking split.
20,000 BABY staked makes one BTC eligible for the boosted rate. Neat ratio, easy to put in a chart. Except the validators and finality providers actually running the infra behind it don't get a cut of that pool proportional to anything they're doing. Cosmos SDK apparently won't let them collect commission on co-staking rewards, so instead they just split a flat 0.075% each, sized by delegation — decoupled from how much co-staking activity they're actually securing.
Hold up — so the whole "Bitcoin, validators, builders, aligned together" pitch has this one seam where the builder side doesn't scale with the thing it's supposed to be incentivized around. Feels less like intentional design and more like a patch they shipped and moved past.
Not saying it breaks the mechanism. It just sat with me longer than the borrowing headline did. Curious if anyone's seen this revisited once the vaults side goes live.
#baby
20,000 BABY staked makes one BTC eligible for the boosted rate. Neat ratio, easy to put in a chart. Except the validators and finality providers actually running the infra behind it don't get a cut of that pool proportional to anything they're doing. Cosmos SDK apparently won't let them collect commission on co-staking rewards, so instead they just split a flat 0.075% each, sized by delegation — decoupled from how much co-staking activity they're actually securing.
Hold up — so the whole "Bitcoin, validators, builders, aligned together" pitch has this one seam where the builder side doesn't scale with the thing it's supposed to be incentivized around. Feels less like intentional design and more like a patch they shipped and moved past.
Not saying it breaks the mechanism. It just sat with me longer than the borrowing headline did. Curious if anyone's seen this revisited once the vaults side goes live.
#baby