With the passing of governance proposal 919, Osmosis is committed to becoming a Bitcoin Secured Network (BSN) through a strategic integration with Babylon Genesis. This change will be implemented in a future network upgrade. It allows Osmosis to leverage the Bitcoin Network’s security, and serve as a premier trading venue for Babylon Genesis assets.
In an upcoming network upgrade, Osmosis will integrate with Babylon Genesis at the chain level to become a BSN. This aligns with Osmosis’s broader Bitmosis initiatives, shifting toward leveraging Bitcoin Network’s security and expanding Bitcoin-related liquidity on the DEX.
The Highlights 
Osmosis will become a Bitcoin Secured Network via an integration with Babylon Genesis
As part of this proposal, the Osmosis Grants Program (OGP) will receive 25 Million BABY (Babylon) tokens over time as milestones are met.
50% of trading fees from Bitcoin LSTs and Babylon ecosystem assets on Osmosis will be distributed to BTC and BABY stakers.
What Does Becoming a BSN Mean for Osmosis?
Enhanced Security
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Osmosis will leverage Bitcoin timestamps to secure consensus data against long-range attacks.
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By periodically confirming Osmosis blocks against the Bitcoin blockchain, the chain becomes far more resistant to attacks requiring forks by requiring that Bitcoin security also be compromised.
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These timestamps may also result in a shorter unbonding period for OSMO staking being required, as this is a current preventative measure for this kind of attack.
Token Allocation
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By integrating with Babylon Genesis, Osmosis gains access to the protocol ecosystem and the opportunities it will provide within Bitcoin DeFi.
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The Osmosis Grants Program will receive 25 million BABY tokens over four tranches, with the first tranche delivered at the launch of Babylon mainnet. These funds are received on behalf of the Osmosis DAO to be used at the sole discretion of the Osmosis DAO and the Osmosis Grants Program. These funds are contingent on Osmosis becoming a BSN.
Payout Distribution
50% of trading fees from Bitcoin LSTs and Babylon ecosystem assets on Osmosis will be allocated to BTC and BABY stakers. These fees will be activated through future governance proposals.
By transitioning to a Bitcoin Secured Network, Osmosis contributes to developing a more robust and interconnected decentralized infrastructure, leveraging Bitcoin’s foundational strength.
What’s Next?
Following the launch of Babylon Genesis mainnet, Osmosis will receive the first tranche of BABY tokens, and the technical work to become a BSN will begin. Additional governance proposals will follow to execute the necessary parameter changes.
This integration provides benefits that go far beyond enhanced network security, further cementing Osmosis as a key player in the growing Bitcoin DeFi ecosystem.