How to Stake BTC with Babylon via Kiln (Phase-1, Cap-2 update)
Follow this step-by-step guide to stake your Bitcoin (BTC) to the Babylon protocol via Kiln:
💡 Babylon Bitcoin staking Phase-1, Cap-2 is is scheduled for block 864,790, estimated on Wednesday, October 9th, at 4 AM UTC / 6 AM CET:
- This phase will be open for 10 consecutive BTC blocks from height 864790 to 864799 included and should last approximately 1.5 hours, depending on block production on the Bitcoin network.
- It will be possible to stake up to 500 BTC per stake maximum (with a minimum 0.005 BTC) but without a total TVL cap, so anyone can stake during the 10 blocks timeframe.
- In addition, starting from BTC block 864790, the number of Babylon points per BTC block will increase from 3125 to 10000.
- To ensure your transaction pass you may need to increase fees up to, and potentially above the $80/$100 range.
- Keep in mind that Bitcoin staking transactions included in BTC block 864800 and all blocks afterward will be labeled as overflow, will not be accepted by the system, and will not accrue any points. All overflow stakes should be unbonded and withdrawn, including Cap-1 and Cap-2.
You can learn more about Babylon Bitcoin staking Phase-1, Cap-2 here.
Step 1: Prepare a supported Bitcoin wallet
For the Phase 1 mainnet, the Stake App will only support BTC staking via OKX Wallet. Install the OKX wallet browser extension and deposit your BTC before proceeding to the next step.
Note: When setting up and funding your wallet, it is important to:
- Not using a hardware a wallet (such as Ledger), aside from Keystone QR code either directly or through other software wallets.
- Not using a wallet that holds any Bitcoin Inscriptions.
- Choose either Native Segwit or Taproot format.
Step 2: Start staking BTC
Navigate to the Kiln’s BTC Staking Interface through this link or on the Babylon staking platform. The process is the same for both.
Step 3: Connect your Bitcoin wallet
Connect your wallet. If you’re visiting the website for the first time, you will need to sign the signature request to get your wallet connected.
Step 4: Enter your BTC amount
Input the amount of BTC you want to stake. During Babylon Phase 1, you have the option to stake between 0.005 and 0.5 BTC per transaction.
Select or switch the address format in your wallet.
Step 5: Determine the transaction fee
Next you can choose to keep the current network fee or prioritize your delegation by increasing the transaction fee.
Reminder: The higher you set your fee, the higher the likelihood your BTC will be staked to the next block, before the phase-1, cap-2 ends.
If your stake arrives after the cap is filled, then it will be in the “overflow” status and you will need to unbond and withdraw your BTC.
Step 6: Stake BTC
Finalize the staking process by clicking “Stake” and confirm the transaction in your wallet.
Step 7: Complete the process
Congratulations you have successfully staked your BTC to Babylon via Kiln’s Finality Provider. You can now track your staked position via the Staking Terminal.
How to unstake BTC?
You can unstake your BTC and withdraw it via the Staking Terminal. There are two steps required to withdraw your BTC,
- Submit an unbonding transaction, to enable your BTC to be withdrawn. The unbonding period takes roughly 7 days (or exactly 1008 Bitcoin blocks as defined by the unbonding script).
- Once unbonded you will be able to withdraw your BTC.
Note: Stake will automatically unbond after 65 weeks.
To begin the process of unstaking your BTC follow the the steps below:
Step 1: Go to the Staking Terminal
Visit the Staking Terminal to view your staking positions.
Step 2: Connect your Bitcoin wallet
Connect the wallet you staked with previously.
Step 3: Manage delegations
Navigate to the “My Holdings” tab to view your staked positions.
Step 4: Unbond BTC
Click on position details and select “Unbond”. Confirm the transaction in your wallet.
Step 5: Withdraw BTC
You can monitor your unbonded BTC via the “Unbonding” as shown below. Once your unbonding period of 7 days ends, you will be able to withdraw your BTC.
.png)
.png)
.png)
