Revitalizing Japan’s Countryside with NFTs
Population decline and aging are challenging issues faced by rural areas in Japan. According to a report by Yuri Group, a Japanese research consulting firm, the rural population in Japan has decreased to only around 8% since the 2010s, and the majority of residents are elderly. This demographic shift has led to the gradual disappearance of villages.
To address these issues, Yamakoshi Village in Nagaoka City has embraced Non-Fungible Tokens (NFTs) and Decentralized Autonomous Organizations (DAOs) to attract digital villagers and combat population decline, aging, and marginalization caused by post-earthquake village destruction.
In 2021, Yamakoshi Village launched the Nishikigoi art NFT series. These NFTs not only serve as proof of digital citizenship but also function as governance tokens for the DAO. This means that Nishikigoi NFT holders can participate in voting on village matters and express their opinions.
What sets this initiative apart is that anyone in the world can become a digital villager of Yamakoshi Village by purchasing the Nishikigoi NFT, not just local residents. The funds raised from the sale of NFTs will be used to support the village’s elderly population (over 65 years old, accounting for 56.2% of residents), village operations, and local school activities.
Yamakoshi Village aims to foster emotional connections between digital villagers from all over the world and local residents by granting them voting rights in community-related affairs. With only 740 residents, the village hopes to receive active support and concern from its digital villagers.
According to Yuri Group’s report, the Nishikigoi NFTs have raised over $400,000 for Yamakoshi Village, with approximately 1,700 digital villagers holding these NFTs. Founder of the project, Takeuchi, stated that there have already been six votes conducted by NFT holders.
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Challenges in Education, Communication, and Voting Weight
While the Nishikigoi NFTs have successfully brought funds and international attention to Yamakoshi Village, there are still many challenges to overcome for the long-term implementation of this project.
For instance, the average participation rate in voting is currently only about 40%. Takeuchi hopes to increase this proportion to 60%-80% in future votes.
Beyond voting rates, Web3 technology is a complex term for those unfamiliar with it, requiring continuous education. Even explaining the benefits of NFTs to elderly residents is a significant challenge. Takeuchi believes this may be one of the reasons for the low participation rate in voting.
Blockchain is not limited by geographical boundaries, so the Nishikigoi NFTs have also attracted many overseas users to become digital villagers. In this case, language becomes another challenge as there are still many details to communicate with international digital villagers regarding voting matters.
Additionally, questions such as “How to balance the voting weight of local residents and digital villagers?” “Can everyone participate in certain decisions?” and “Will local residents oppose giving voting rights to digital villagers they have never met?” are daily considerations for DAO members.
Currently, this policy may seem overly idealistic, similar to a utopia. However, whether “preserving villages and culture with NFTs” will become a national consensus in Japan remains uncertain. According to Yuri Group’s report, if Yamakoshi Village’s strategy proves successful and expands to other villages, an estimated $500 million in funding can be raised for rural areas in Japan.
Sources:
Yuri Group Reports, Cointelegraph, The Crypto Times