Babylon Sees 256-BTC Redemption With 1.35-BTC Fee
1min read Following the token airdrop in Babylon, a significant amount of Bitcoin was redeemed. According to mempool founder mononaut, 256 BTC were redeemed from Babylon within the past 24 hours. The redemption transactions incurred a total fee of 1.35 BTC and consumed 1.318 MvB of block space.
Mononaut suggested that the high redemption transaction fee could be attributed to the large size of the unstaking script. Additionally, the protocol may have locked in a fixed fee rate chosen months ago, possibly as a presigned transaction. This fixed fee rate could be a contributing factor to the high transaction costs observed.
The high transaction fees have drawn attention to the efficiency and cost-effectiveness of the redemption process. The large size of the unstaking script and the fixed fee rate are potential areas for improvement to reduce the financial burden on users redeeming their tokens. The situation highlights the need for protocols to regularly review and adjust fee structures to better accommodate user needs and market conditions.
Ask Aime: What are the implications of the significant redemption of Bitcoin from Babylon's platform?
