We have voted "YES" on a recent @babylonlabs_io proposal to reduce inflation by 33% and introduce "co-staking" to align BTC stakers with $BABY This proposal will reduce overall inflation from 8% to 5.5% with the following breakdown: - 1% goes to BTC stakers, and finality providers can charge commission. - 2% goes to BABY stakers, and CometBFT validators can charge commission. - 2.35% extra goes to BTC stakers who also stake BABY, serving as the co-staking reward. Every 20,000 BABY staked makes 1 staked BTC eligible for the co-staking reward. - Due to Cosmos SDK’s limitation, finality providers and CometBFT validators cannot charge commission from the co-staking rewards. To compensate for this limitation: - 0.075% goes to active FPs based on their delegation size. - 0.075% goes to active CometBFT validators based on their delegation size We believe this introduces incentive alignment for the 57k BTC ($7 billion) currently staked via Babylon to the network's core token $BABY, while providing the protocol additional optionality for increasing the co-staking factor in the future, along with tweaking other variables For all of the current 57,759.9 BTC staked on Babylon to become eligible for this, it would require 1.16bn BABY tokens to be co-staked The current circulating supply is 2.67bn, with 1.98bn bonded, giving a true "float" of approximately 690m. This proposal, in tandem with the programatic inflation deflation proposal which passed in August provides a strong foundation for $BABY tokenomics