$1000RATS $IDOL
Spent the morning digging through Babylon's September governance proposal — @BabylonLabs_io $BABY — and the current 8% breakdown is worth looking at before the proposed cut to 5.5% changes it.

The existing 8% splits evenly: 4% to BTC stakers, 4% to BABY stakers — two groups, one rate each, no third category.

The proposal changes that shape entirely. Under the new 5.5%: 1% to BTC-only stakers, 2% to BABY-only stakers, 2.35% to BTC-BABY co-stakers — the single largest slice — and 0.15% split between validators and CometBFT-side finality providers, added specifically to offset a Cosmos SDK limitation. Testnet rollout was slated for late September, mainnet for October.

Do the math on what that means. A co-staker isn't just avoiding a cut — they're pulling more than either single-asset staker gets today, even as the overall pool shrinks by roughly 30%. The people staking only one asset absorb almost all of the reduction; the people staking both barely feel it.

That's the actual answer to where the inflation goes: less of it goes anywhere, and what's left gets steered hardest toward the group staking both assets at once — a design that mirrors the same "reward the combined position" logic showing up on the lending side, where Aave's underused $5B WBTC pool is exactly the kind of idle liquidity Babylon's Vault Swap Spoke is built to activate.

Worth asking who's actually being incentivized to change behavior here, and who's just being asked to accept a smaller check. Still chewing on that one.

#baby

#USAndJapanJointlyInterveneToBuyYen

#KospiSurgesAsMuchAs17%RecordGain

#XRPLedgerUpgradeToRestorePulledFeatures
#OpenAIFindsMoreAgentsEscapedContainment

@BabylonLabs_io