Yamakoshi, a village nestled in the Niigata mountains in Japan, has adopted non-fungible tokens to raise money for community initiatives. Called the “Neo-Yamakoshi Project,” the Web3 fundraiser includes a 2,900 NFT collection that has generated $423,000 in revenue for the village. Among other uses, the community has leveraged the money to provide children with a sports day.
Holders have benefited as well. The NFTs confer access to a metaverse, and owners can participate in a decentralized autonomous organization (DAO) that guides community decision-making. Currently, the floor price rests at 0.03 ETH ($103). There are 1,750 unique holders (or “e-citizens”) of the 2,900 tokens, and just 0.05% are listed for sale. The art is based on the infamous koi fish, which is colorful and often raised to be kept or for appreciation.
The Neo-Yamakoshi Project is part of Prime Minister Fumio Kishida’s “Society 5.0” plan, which imagines an advanced society that has integrated the physical world with cyberspace. Among the technologies often cited in Japan’s Society 5.0 plan are artificial intelligence, the Internet of Things, and Big Data. The next iteration of the internet (Web3) may play a role as well.
According to Yuri Group, which issued a report on the Neo-Yamakoshi Project, 40% of Japan’s municipalities are at risk of disappearance due to the country’s low birth rate. That statistic echoes a selling point on the project’s website, which talks about the struggle of villages like Yamakoshi: survive or disappear. Web3 technology, and especially NFTs, is often used to preserve culture.
There have been some problems with the project. The DAO has seen a lower voter turnout, and foreigners who participate in decision-making processes often face a language barrier. In addition, it has taken time to explain the technology to Yamakoshi’s older residents and how this project will benefit them. Rarity Sniper has reached out to Yuri Group for comment and will update this article if they respond.
Japan: an Asian Web3 Hub in the Making?
Japan is known for its advanced technology, with users posting videos on social media writing captions that the island-nation is “living in the future.” And even though Web3 isn’t often mentioned in the technologies Japan will use to realize Society 5.0, there are signs that it may play an integral role. Here are three stories suggesting such.
First, four months ago, Japan’s Ministry of Economy, Trade, and Industry (METI) approved a bill that will allow more domestic investment into Japanese Web3 companies. Previously, Japanese venture capitalist firms had been barred from such investments, leading Web3 companies based in Japan to seek foreign investment.
Next, at the turn of last year, the Japanese cabinet approved a proposal that would end tax on corporations’ unrealized crypto gains. The proposal came with guidance from the Japan Blockchain Association and Japan Crypto Asset Business Association. If the Japanese legislature passes the bill, the Web3 industry in Japan could boom.
Lastly, in October 2022, Prime Minister Kishida told the country that Japan is investing in a variety of Web3 technologies. These included non-fungible tokens, which would be used to digitize national identity cards, and the metaverse.
As these stories show, Japan appears enthusiastic about Web3. This could be a great sign for the industry as it seeks to mature. Rarity Sniper will keep an eye on the island nation to see what they may be up to next.