Nestled in the Niigata mountains of Japan, the secluded village of Yamakoshi has taken an innovative approach to support and sustain its aging population. Through the sale of non-fungible tokens (NFTs), the village has attracted 1,700 “digital citizens” in a groundbreaking initiative.
The Neo-Yamakoshi Village project, spearheaded by local residents, manages the Nishikigoi NFT collection, named after the breed of koi carp. These digital assets serve a dual purpose: they act as identifiers for Yamakoshi’s “digital citizens” and function as governance tokens, allowing participation in the village’s DAO-managed voting processes.
Since its launch in 2021, the project has raised over $423,000 through Nishikigoi NFT sales, according to a report by Japanese research and consulting firm Yuri Group. The proceeds have gone toward community initiatives, such as organizing a sports day for local school children.
While physical residents of Yamakoshi receive the Nishikigoi tokens for free, digital community members must purchase them. As of press time, the floor price for these NFTs on Magic Eden was 0.032 Ether.
Although NFT technology alone doesn’t present an immediate solution to Japan’s record-low birth rate, it offers a unique and experimental approach to raising funds for aging populations in isolated rural communities. The Yuri Group report suggests that if this strategy proves successful and expands to other villages, rural Japan could potentially fund-raise sums in the region of half a billion dollars while testing a new wave of social tech with global appeal.
The urgency of such initiatives is underscored by a recent report from the private sector group Population Strategy Council, which stated that 40% of Japan’s 1,729 municipalities are at risk of disappearing due to declining birth rates.
Recognizing the potential of Web3 technologies, Prime Minister Fumio Kishida’s administration views them as key elements in achieving “Society 5.0,” a plan aimed at creating a more sustainable and advanced society by integrating technologies like artificial intelligence, the Internet of Things, and big data. In support of this vision, the Neo-Yamakoshi Village project received a grant of 10 million yen (about $62,500) from the ruling Liberal Democratic Party to test and implement Web3 tools.
However, the project has faced challenges, particularly in explaining the technology and its benefits to older adults. The project manager reported difficulties in demonstrating the decentralized autonomous organization voting process and observed low voter turnout. Additionally, overseas digital citizens have encountered language barriers.
