NFTs
Japanese Village Adopts NFT for Community Development
The village of Yamakoshi in Japan’s Niigata Mountains has found an innovative way to finance its development through the use of non-fungible tokens (NFT). Started in 2021, the ‘Neo-Yamakoshi Village project’ attracted 1,700 “digital citizens” who purchased Nishikigoi NFTs, raising more than 3,000.
Digital assets are the identifiers and governance tokens that allow people to participate in decision-making based on the procedures of the village’s distributed autonomous organization (DAO) to give voters a say in community outcomes.
Yamakoshi, an isolated Japanese village situated in the Niigata Mountains, has attracted 1,700 “digital citizens” through the sale of NFTs in an initiative that aims to support and sustain its aging population.
This digital asset is an identifier for the “digital… pic.twitter.com/FmCNcJ2xe9
— matthew sigel, recovering CFA (@matthew_sigel) June 26, 2024
Profits from NFT sales were set aside for various community projects, starting with sports activities for school children. The Neo-Yamakoshi Village project faces challenges: older residents need help with technology, and communication barriers exist due to its international scope.
The low voter turnout in the DAO elections highlights the initial obstacles in integrating digital governance structures into traditional community settings. The Yamakoshi project has received support from the Japanese government to expand its scope, which could serve as a model for other municipalities in Japan.
Global NFT markets have seen a downturn, trading volumes have dropped significantly, with the second quarter of 2024 projected to close 45% compared to previous periods. Observers have pointed out that Japan has a particular tradition of collecting tokens, meaning the business case for NFTs could remain robust.
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