Building a newborn economy with Blockchain? "Baby Tokenization (BabyFi)" can combat the crisis of declining birth rates?

Blockchain not only challenges financial rules but may also become the savior of birth rates in the future? A proposal titled "The Pro-Social Case for Tokenizing Babies" has recently sparked controversy on social media, with its core concept being to transform infants into "on-chain financial assets," thereby redefining the economic value of raising children and alleviating the crisis of declining birth rates.

From family assets to economic burdens: challenges of the low fertility era

Author @lzminsky, as a developer in the crypto space, pointed out that historically, children have always been a source of productivity in families. As early as five years old, they may have participated in basic labor, and by ten, they could become important laborers in agriculture or handicrafts.

However, with the popularization of industrialization and the education system, children have shifted from being "producers" to "consumers" who need to be nurtured for 18 years, resulting in a significant increase in the cost of raising children, which directly affects the global birth rate:

In the face of the crisis of aging and labor shortages, I believe that we should redefine the "value positioning" of children through Blockchain, transforming it into economic assets to encourage families' willingness to have children.

Baby Bonds Debut: Transforming Children into On-Chain Financial Assets

The core concept of the proposal is "Baby Bond (", a hybrid asset that combines NFT and fungible tokens. Each newborn will be minted as a unique NFT, recording their birth information and growth data, while the fungible token part can be used as a financial product for investment and trading.

Value calculation formula: dB/dt = ∂INFNT/∂Milestone + ∂INFNT/∂MemeVelocity

The value calculation formula is based on the "value change rate of the baby bond )B(", using the baby's "growth milestones" and "community influence" as key drivers, and introducing AI and smart contracts for comprehensive monitoring and management:

The value of the token exhibits non-linear growth alongside the child's development and achievements, similar to the "Bond Convexity )Bond Convexity(" in venture capital.

AI Empowerment and Achievement Badges: Building Children's On-Chain Resume

Through the AI agent system, infants begin to accumulate personal growth data from birth, including language skills, motor performance, and social interactions, which will be transformed into verifiable data.

As they grow, educational institutions can issue on-chain badges ) such as "Three Years of Reading" or "Admitted to MIT" (, and these achievements will directly impact the token value, turning the child's developmental journey into a concrete and quantifiable economic asset.

On-chain governance system: from parental custody to self-management

The governance mechanism design of baby bonds is also forward-looking: "Before the baby turns 18, their token assets are managed by their parents in the form of a DAO ) decentralized autonomous organization (. Starting at age 13, the child can gradually obtain partial governance rights, and after turning 18, they will have full control over their token governance."

The decision-making process will adopt decentralized mechanisms such as "second voting" to prevent monopolization by large holders.

A brand new financial ecosystem: Can babies also become investment tools?

The proposal outlines a brand new financial application scenario for infants, including:

Baby Mortgage: Use the child's tokens as collateral to apply for short-term and long-term loans.

Baby ETF Portfolio: Create a "Baby Index Fund" that allows investors to bet on future stars with specific talents or from particular regions, from "high IQ children" to "African potential child ETF."

Baby Futures Trading: Predict the future economic output of a specific child for long and short trading, with returns based on the on-chain key performance indicator at age 21 )KPI(.

Public Welfare DAO: Invest in baby tokens for underdeveloped regions, combining charity and investment returns.

Narrative derivatives: creating financial products centered around life stories, such as "Will I become a Nobel Prize winner in the future?", similar to a prediction market.

Pros and Cons: Innovation or Exploitation?

The proposal emphasizes its potential social benefits: "increasing the birth rate, providing financial freedom for families, and creating a fairer incentive mechanism." However, its moral and ethical controversies cannot be overlooked.

Critics of the comments believe this is a "commodification" and "financial exploitation" of life, which may infringe on children's human rights. In response, the author said:

We are not trading children, but the belief in their future potential.

Creative, but don't rush into getting pregnant.

It is not difficult to see that achieving this vision relies on a proper token standard, highly secure smart contracts, privacy-protecting AI models, and a sound on-chain governance system. However, the most challenging aspects remain legal regulation, social acceptance, and the consent mechanism for children. As ChatGpt commented:

The proposal is fantastical, more like a vague and absurd experiment combining Blockchain, sociology, and economics.

"The Pro-Social Case for Tokenizing Babies" can only be described as an extreme challenge to blockchain technology, but it still raises a significant question about human nature, economics, and the future value of society, providing a new perspective that stimulates thought and prompts a re-examination of the relationship between reproduction and the economy.

After all, the issues of declining birth rates and an aging workforce do exist and are indeed becoming increasingly serious.

This article discusses creating a newborn economy using Blockchain? Will "Baby Tokenization )BabyFi(" be able to combat the crisis of declining birth rates? First appeared in On-chain News ABMedia.