Nestled in the Niigata mountains of Japan, the village of Yamakoshi has embraced NFTs to support its development and sustain its aging population. The Neo-Yamakoshi Village project, launched in 2021, has drawn 1,700 “digital citizens” who purchased Nishikigoi NFTs, raising over $423,000. This inventive approach blends digital assets and decentralized governance to address challenges faced by rural Japanese communities, as noted by the Yuri Group.

The Nishikigoi NFT collection, named after the colorful koi carp, acts as an identifier for Yamakoshi’s digital citizens and a governance token. These tokens enable participation in the village’s decentralized autonomous organization (DAO), allowing global supporters to influence community decisions. This digital governance model ensures that even those far from Yamakoshi can contribute to its future.

This initiative not only supports local activities but also strengthens the bond between the village and its digital citizens, illustrating how digital tools can enhance real-world community engagement. Proceeds from NFT sales have funded various community projects, including organizing a sports day for local children, uniting physical and digital residents.

Since its inception, the Neo-Yamakoshi Village project has raised significant funds through Nishikigoi NFT sales, with a floor price of 0.0318 ETH as of June 26. These funds have been crucial in supporting local projects and enhancing residents’ quality of life. The Japanese government has recognized this initiative’s potential, providing support and considering it a model for other rural communities.

The project’s success has spurred discussions about expanding its scope to other municipalities. If this strategy proves effective, rural Japan could potentially raise substantial funds while pioneering new social technologies with global appeal. Despite its successes, the project faces challenges such as older residents struggling with technology and low voter turnout in DAO elections, highlighting the difficulty of integrating digital governance into traditional settings.

While the global NFT market has seen a downturn, Japan’s cultural tradition of collecting tokens may help maintain the business case for NFTs. Yamakoshi’s initiative aligns with Prime Minister Kishida Fumio’s digital transformation policy, aiming to revitalize the nation’s economy. By focusing on the global appeal of traditional Japanese culture and digitizing it, the Neo-Yamakoshi Village project opens access to anyone with an internet connection. This innovative blend of NFTs, DAOs, and a global digital community is preserving Yamakoshi’s cultural heritage while creating a sustainable future for its residents.