BABY is trading around $0.0116 today, down about 7.5% in the last 24 hours, with roughly $6.7M in trading volume and a market cap just under $47M. Meanwhile, Babylon is still coordinating more than $3.2B in Bitcoin-backed security.
The number that caught my eye wasn't the TVL.
It was the token supply.
Over 10.8B BABY exists, yet less than half is circulating. Every future unlock changes who owns the governance layer, while the Bitcoin securing the network doesn't experience dilution at all.
Hmm.
That's an interesting dynamic.
BTC holders contribute the economic weight.
BABY holders absorb the changing ownership structure.
Those two groups aren't exposed to the same incentives, even though they're participating in the same protocol.
Not saying that's a problem.
Most infrastructure networks go through this phase.
Just found it interesting that Bitcoin's share of the system stays constant, while the governance layer is still finding its long-term distribution.
Makes me wonder whether Babylon eventually becomes a Bitcoin-first network...
Or a governance-first network that's secured by Bitcoin.
@BabylonLabs_io #baby $BABY
The number that caught my eye wasn't the TVL.
It was the token supply.
Over 10.8B BABY exists, yet less than half is circulating. Every future unlock changes who owns the governance layer, while the Bitcoin securing the network doesn't experience dilution at all.
Hmm.
That's an interesting dynamic.
BTC holders contribute the economic weight.
BABY holders absorb the changing ownership structure.
Those two groups aren't exposed to the same incentives, even though they're participating in the same protocol.
Not saying that's a problem.
Most infrastructure networks go through this phase.
Just found it interesting that Bitcoin's share of the system stays constant, while the governance layer is still finding its long-term distribution.
Makes me wonder whether Babylon eventually becomes a Bitcoin-first network...
Or a governance-first network that's secured by Bitcoin.
@BabylonLabs_io #baby $BABY