In the mountains of Niigata, the remote village of Yamakoshi in Japan is innovating with NFTs to support its aging population. The project, called Neo-Yamakoshi Village, uses digital assets to create a community of “digital citizens” while raising funds for local initiatives.
Yamakoshi’s NFT strategy: a response to depopulation
A unique project for a unique village
Yamakoshi, a remote Japanese village, has attracted 1,700 “digital citizens” thanks to the sale of NFTs (Non-Fungible Tokens). The Neo-Yamakoshi Village project, run by local residents, manages the NFT Nishikigoi collection, named after the vibrant breed of koi carp. These digital assets not only serve as identifiers for Yamakoshi’s digital citizens, but also act as governance tokens enabling participation in voting processes managed by a DAO (decentralized autonomous organization).
Key points of the project :
- Funded projects: The funds raised, over $423,000 since 2021, have been directed towards community initiatives such as organizing fields days for local children.
- Resident participation: Nishikigoi tokens are free for physical residents, while the digital community must purchase them, with a floor price of 0.0318 Ether (ETH) in June 2024.
- Government support: The project received 10 million yen (approx. $62,500) from the Liberal Democratic Party to test and implement Web3 tools.
The challenges and opportunities of NFTs in rural communities
Despite its initial success, the Neo-Yamakoshi Village project is encountering challenges, particularly in terms of the understanding and adoption of technology by elderly residents. Managing decentralized voting processes and the language barrier for international digital citizens are major obstacles. However, the potential of this strategy to attract the attention of other nations facing declining birth rates is notable.
Points for reflection :
- Technology and society: Although NFT technology is not an immediate solution to Japan’s low birth rate, it represents a unique and experimental approach to raising funds for aging populations in isolated rural communities.
- Adoption of NFTs: According to Yuri Group researcher Will Fee, Japan, the home of manga and anime, has a culture of physical collectibles that lends itself well to the adoption of NFTs. Yamakoshi’s digital citizens often use animated or more cartoony avatars, suggesting that the technology’s more playful applications could coexist with its impactful social uses.
The impact of NFTs on the local economy and the future of Yamakoshi
Innovation at the service of the community
The Neo-Yamakoshi Village project shows how NFTs can be used to support local communities and strengthen resident involvement, whether physical or digital. Initiatives financed by the sale of NFTs, such as sporting events for children, demonstrate a concrete and beneficial use of the funds raised.
Outlook and potential expansion
If Yamakoshi’s strategy succeeds and spreads to other villages, rural Japan could raise funds in the region of $500 million while testing a new wave of social technologies with global reach. Support from the Japanese government and the inclusion of Prime Minister Fumio Kishida’s “Society 5.0” vision, which incorporates technologies such as artificial intelligence and the Internet of Things, could accelerate this expansion.
Future challenges :
- Domestic and international adoption: The adoption of NFTs in other Japanese villages and potentially internationally could transform the way rural communities finance and manage their local initiatives.
- NFT market trends: Despite a recent decline in NFT trading volumes, the potential for practical NFTs and profile collectibles remains significant, especially in a country with a strong collecting culture.
Conclusion
Yamakoshi Village, with its Neo-Yamakoshi Village project, embodies an innovative approach to supporting aging communities through NFTs. Although challenges remain, the opportunities offered by this technology and the commitment of residents show a promising path for other rural communities in Japan and beyond.
