Thanks to Babylon, BTC holders can get rewards without moving their Bitcoin to another chain or putting it at risk. By locking your BTC, you’ll start receiving BABY tokens, the native asset of the Babylon network.
This guide will tell you how to stake BTC using the OneKey wallet through Everstake’s dashboard. We’ll walk you through the full flow, from connecting both Bitcoin and Babylon wallets to confirming transactions and tracking rewards.
What You Need to Know about Bitcoin Staking?
Bitcoin staking on Babylon allows BTC holders to contribute to network security and get BABY tokens in return. It’s a new approach that doesn’t require bridging your BTC to another chain, your coins stay right where they are.
Instead of transferring BTC, you prove ownership and lock your coins for a set period. As long as the BTC remains untouched during that time, you’re eligible for rewards.
However, be aware that slashing is possible. If the locked BTC is moved or spent while it’s supposed to be staked, it can lead to penalties, so it’s important to follow the protocol rules carefully.
Rewards are distributed in BABY tokens on the Babylon Genesis chain. These tokens are not auto-compounded, so you need to claim them manually and can optionally restake BABY to boost returns.
Why Use a Hardware Wallet Like OneKey?
OneKey is a secure hardware wallet that supports both Bitcoin and Babylon Genesis chains. Using OneKey ensures that your private keys remain offline, providing maximum protection against phishing, malware, and online exploits.
Staking through OneKey also allows you to sign Bitcoin messages with full control and clarity, making it ideal for interacting with decentralized protocols like Babylon without compromising security.
Step-by-Step Guide: How to Stake BTC via OneKey
Follow these seven steps to stake your tokens and get rewards.
Step 1: Open the Staking Dashboard
- Go to the Everstake Bitcoin Staking Dashboard and click Connect Wallets.
- Agree to the Terms of Use and Privacy Policy, then click Next.
Step 2: Prepare the Two Wallets
You will need:
- A Bitcoin wallet (for staking BTC).
- A Babylon wallet (for receiving BABY rewards).
You can use the same OneKey device for both, just make sure you generate the correct address types.
Step 3: Connect Your Bitcoin Wallet
- Connect your OneKey hardware wallet and enter the device password when prompted.
- Approve the connection in the OneKey App.
- Choose your BTC address type — Taproot or Native SegWit are supported. See the screenshot for guidance.
- Ensure your Bitcoin balance does not include Ordinals, Runes, or NFTs.
- Confirm and click Save to complete the wallet connection.
Step 4: Connect Your Babylon Wallet
- Now connect the Babylon wallet via the same OneKey device. The rewards from BTC staking will be accrued in BABY tokens. That is why you need your BABY address.
Note: You’ll need a small amount of BABY tokens in your Babylon chain wallet to pay the transaction fees.
- Approve the connection in the OneKey App.
- Click Done to proceed to BTC staking.
Step 5: Start Staking
- Once both wallets are connected, scroll down to the BTC Staking section in the dashboard.
- Enter the amount of BTC to stake (minimum is 0.005 BTC). Keep a little extra BTC in your wallet to cover the transaction fee.
- Review the estimated network fee and click Preview.
- At this point, please carefully check all the Bitcoin staking details and proceed to sign.
Step 6: Review and Sign the Transaction
- Carefully check all staking details.
- In the OneKey App, click Sign.
- Enter your PIN code on the OneKey hardware device.
- Note that the digit layout is randomized, enter your password based on the screen.
- Confirm the message prompts.
Step 7: Done!
Once signed, your BTC will be successfully staked via Everstake’s Finality Provider.
Please note: the rewards for Bitcoin staking are accrued in BABY, a native token of Babylon Genesis PoS. The rewards aren’t autocompound, meaning you have to claim them regularly. You can stake your BABY tokens to get even more rewards.
Conclusion
Bitcoin staking with Babylon introduces a good way to get rewards on your BTC with no bridges, no wrapped tokens, and full custody of your funds. By using a OneKey hardware wallet, you ensure that every step of the process remains secure and transparent.
As BABY rewards accumulate, you can further stake them on the Babylon chain to grow your rewards even more. To get started, all you need is your OneKey wallet, a bit of BTC, and some BABY to cover fees.
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Babylon Bitcoin Staking FAQs
Q: Is slashing possible?
A: Yes. Babylon implements slashing to protect the protocol. If your staked BTC is moved or spent before the lock period ends, 0.1% of the total staked amount will be slashed. The remaining 99.9% will be returned to you, minus the standard Bitcoin transaction fee (~0.001 BTC) required to process the slashing transaction.
Q: What’s the minimum and maximum amount of BTC I can stake?
A: The minimum amount you can stake is 0.005 BTC. There’s no fixed maximum, but ensure you leave some BTC in your wallet to cover Bitcoin network fees.
Q: Can I unstake my BTC at any time?
Yes, you can choose to unstake your BTC at any time before the lock period ends, you don’t have to wait the full ~15 months (64,000 blocks).
However, once you initiate unstaking, there will be a mandatory on-chain unbonding period of 1,008 Bitcoin blocks (~7 days) before you can redeem your BTC and move it. During this time, your stake is inactive and doesn’t get rewards.
Q: How are rewards paid out?
A: Rewards are distributed in BABY, the native token of the Babylon Genesis chain. BABY rewards are not auto-compounded, so you’ll need to manually claim them.
Q: Can I stake my BABY tokens too?
A: Yes. After claiming your BABY rewards, you can stake them on the Babylon chain for additional rewards.
Q: Do I need BABY before I start staking BTC?
A: Yes. You’ll need a small amount of BABY in your Babylon wallet to cover transaction fees when signing or claiming rewards. Make sure to fund your wallet before starting.
Q: How long does it take for my Bitcoin stake to be finalized?
A: After your staking transaction is included in the Bitcoin blockchain, you will need to wait for 30 blocks to finalize your staking.
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Everstake is a software platform that provides infrastructure tools and resources for users but does not offer investment advice or investment opportunities, manage funds, facilitate collective investment schemes, provide financial services, or take custody of, or otherwise hold or manage, customer assets. Everstake does not conduct any independent diligence on or substantive review of any blockchain asset, digital currency, cryptocurrency, or associated funds. Everstake’s provision of technology services allowing a user to stake digital assets is not an endorsement or a recommendation of any digital assets by it. Users are fully and solely responsible for evaluating whether to stake digital assets.
