Mitigating potential attacks through maximum staking value

Concerns were raised about the possibility of a single staker representing 100% of the BTC stake on Babylon if the first staking transaction stakes the entire cap (without overflowing). This could potentially allow them to attack proof-of-stake (POS) chains that honor Babylon stake in a way that would not be possible without the cap. The team addressed two points in response to this concern.

First, to prevent the scenario where a single staker can dominate the BTC stake on Babylon, the maximum staking value will be set much smaller than the overall staking cap.

Second, in Phase 1 of the Babylon protocol, there is no POS chain that could be attacked. The system parameters are designed to be upgradable, allowing for the staking cap to be increased in the future to accommodate more participants.