NFTs and Rural Communities: The Neo-Yamakoshi Village Initiative
Yamakoshi, an intimate village tucked away in the Niigata mountains of Japan, has enticed 1,700 'digital citizens' by embracing the sale of non-fungible tokens (NFTs) to support and sustain its aging residents.
Local inhabitants spearhead the Neo-Yamakoshi Village project, overseeing the management of the Nishikigoi NFT collection, inspired by the vibrant koi carp species.
These digital assets not only serve as identifiers for the village's 'digital citizens' but also operate as governance tokens, facilitating engagement in the village's decentralized autonomous organization (DAO) electoral processes.
According to a recent report by Japanese consultancy firm Yuri Group, the project has successfully raised over $423,000 through the sale of Nishikigoi NFTs since its launch in 2021.
The generated funds have been channeled towards local initiatives, including the coordination of sports events for school children in the area.
The Nishikigoi tokens are provided at no cost to physical residents of Yamakoshi, while the digital community is required to purchase them. The current base price is 0.0318 Ether as of June 26, as reported by the NFT marketplace Magic Eden.
While NFT technology alone may not be an immediate remedy for Japan's plummeting birth rate, it serves as an innovative and experimental means of fundraising to support aging populations in secluded rural regions.
Yuri Group underlined in its report that should the strategy prove effective and expand to other villages, rural Japan could potentially raise substantial funds amounting to approximately half a billion dollars, thereby exploring a new wave of social technology with global appeal.
An analysis by the private sector Population Strategy Council in April revealed that 40% of Japan's 1,729 municipalities face the looming risk of disappearance due to dwindling birth rates.
The virtual town hall in Yamakoshi welcomes both physical and digital citizens, fostering an inclusive environment. Prime Minister Fumio Kishida's administration views Web3 technologies as essential in achieving 'Society 5.0,' a vision aimed at establishing a more sustainable and advanced society through the integration of technologies like artificial intelligence, the Internet of Things, and Big Data.
To explore the potential of Web3, the Neo-Yamakoshi Village project was granted 10 million yen (approximately $62,500) by the ruling Liberal Democratic Party.
However, the project has faced obstacles in explaining the technology and its benefits to the elderly demographic. Challenges in demonstrating the DAO voting process and witnessing low voter turnout were expressed by the project manager, as outlined by Yuri Group. Furthermore, overseas digital citizens encountered language barriers.
Despite the recent decrease in global NFT trading volume, Yuri Group highlighted that there is space for both practical NFTs and profile collectibles in Japan. Will Fee, a researcher at Yuri Group, emphasized Japan's thriving anime and manga culture, along with a robust tradition of physical collectibles, which are conducive to NFT adoption. The choice of anime or cartoonish avatars by the 'digital citizens' in the Yamakoshi metaverse suggests that the playful applications of the technology can coexist with its socially impactful uses.
