Japanese Village Uses NFTs to Raise Money for Community

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.