Yamakoshi, a serene village nestled in the Niigata mountains of Japan, has drawn in 1,700 “digital citizens” through the sale of non-fungible tokens (NFTs), aiming to support its aging population. Spearheaded by local residents, the Neo-Yamakoshi Village project oversees the Nishikigoi NFT collection, named after the colorful breed of koi carp.
These digital assets serve as identifiers for Yamakoshi’s “digital citizens” and also function as governance tokens, facilitating participation in the village’s DAO-managed voting processes. Since its launch in 2021, the project has raised more than $423,000 from the sale of Nishikigoi NFTs, as reported by Japanese research and consulting firm Yuri Group.
Proceeds from these sales are directed towards community endeavors, such as organizing sports events for local school children. While physically located residents of Yamakoshi receive Nishikigoi tokens for free, digital community members must purchase them, with a current base price of 0.0318 Ether (ETH) according to NFT marketplace Magic Eden.
The initiative reflects an innovative attempt to address the financial needs of aging rural populations in Japan, though it does not offer a direct remedy for the country’s low birth rates. Nevertheless, it represents a novel approach to fundraising, potentially scaling to raise substantial sums across rural Japan and pioneering new social technologies with global appeal.
Prime Minister Fumio Kishida’s administration views Web3 technologies as pivotal in achieving “Society 5.0,” a vision integrating artificial intelligence, the Internet of Things, and big data to foster a more sustainable and advanced society. The Neo-Yamakoshi Village project received backing from Japan’s ruling Liberal Democratic Party, securing 10 million yen ($62,500) to explore and implement Web3 tools.
Despite its promising prospects, the project faces challenges such as educating older adults about the technology and addressing language barriers for international digital citizens. Moreover, the global NFT market has experienced significant declines recently, with trading volumes forecasted to drop by 45% in the second quarter of 2024, marking June as potentially the worst-performing month since October 2023.
While collectibles and avatars dominate the NFT market, their market capitalization fell by 31.5% in the three months leading up to June 26, according to NFTGo data. Nonetheless, experts from Yuri Group emphasize Japan’s affinity for physical collectibles like anime and manga, suggesting a compatible environment for NFT adoption.
“Digital citizens” within the Yamakoshi metaverse often adopt anime or cartoonish avatars, highlighting the technology’s potential not only for social impact but also for playful applications. This dual approach underscores the adaptability and enduring appeal of NFTs in Japan’s cultural landscape.