# Participate in Babylon Phase 1 - Cap 2

### **Background on Babylon Bitcoin Staking – Phase 1, Cap-2**

Babylon Staking allows Bitcoin holders to **lock up their BTC in exchange for rewards**, incentivizing long-term holding and providing access to various network features. The program is rolled out in **phases** with defined "caps" to gradually onboard participants and manage the flow of staking transactions.

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### **Phase-1 Overview**

Phase-1 serves as the **first live mainnet launch** of Babylon’s Bitcoin staking initiative. It introduces capped staking windows to test the system under real-world conditions and offers participants an opportunity to earn **points**, which may unlock future rewards or benefits on the platform (subject to jurisdiction). Each cap introduces slightly different rules to encourage flexibility and participation.

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### **What is Cap-2?**

Cap-2 is part of **Phase-1** and introduces new parameters following Cap-1's successful conclusion. This round aims to scale up participation by allowing **higher staking limits** and **reduced unbonding fees**. Cap-2 will run for **10 Bitcoin blocks**, and only the transactions in these blocks will qualify.

### **How to Participate in Babylon Bitcoin Staking – Phase 1, Cap-2**

Cap-2 starts on **October 8, 2024, around 8 PM UTC** and will last for **10 Bitcoin blocks**. Here’s a quick guide:

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### **Key Dates & Duration**

* **Starts**: October 8, 2024, at 8 PM UTC
* **Duration**: BTC block **864790 to 864799** (10 blocks)

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### **How to Stake**

* **Minimum Stake**: 0.005 BTC
* **Maximum Stake**: 500 BTC
* **Unbonding Fee**: 0.00032 BTC (50% lower than Cap-1)

**Important**: Transactions outside the 864790–864799 block range will **not be accepted**.

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### **Points System**

* **10,000 points per block**, distributed proportionally based on your stake.
* Points may unlock future benefits (check availability in your jurisdiction).

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### **Overflow Policy**

* Transactions in blocks **after 864799** will be labeled **overflow** and rejected.
* **Overflow stakes from Cap-1** won’t carry over to Cap-2.

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### **Next Steps**

1. **Stake between blocks 864790–864799** to qualify.
2. If your stake becomes overflow, **unbond and withdraw** promptly.
3. For more details, visit **Babylon Labs' platform**.


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