Japanese Village Harnesses NFTs to Support Aging Population: A Unique Model for Rural Sustainability
Summary:
Yamakoshi, a remote village in Japan, has attracted 1,700 digital citizens via the sale of non-fungible tokens (NFTs) through the Neo-Yamakoshi Village project to support its aging population. Residents manage the Nishikigoi NFT collection, acting as both an ID for the digital inhabitants and a governance token for village voting. With over $423,000 raised for local community initiatives, the project faces challenges like explaining the tech to older adults or language barriers for international members. Despite a recent dip in NFT trading, there's potential for socially impactful uses, especially in Japan, known for its culture of anime, manga, and collectibles.
Located in the Niigata mountains in Japan is Yamakoshi, a remote village that has garnered attention by attracting 1,700 virtual inhabitants through the sale of non-fungible tokens or NFTs. Aimed at helping and preserving the elderly population, this initiative has taken shape as the Neo-Yamakoshi Village project. A collection of Nishikigoi NFTs, named after a colorful type of koi fish, forms the digital identity of the "digital inhabitants" and provides them with voting rights in the village's blockchain-controlled administrative processes. A study by Japanese-based Yuri Group, a research and consulting firm, revealed that since its inception in 2021, the project has brought in over $423,000 via the sale of Nishikigoi NFTs. Funds raised were assigned to community-oriented activities like a local school sports day event.
Residents living in physical Yamakoshi receive the Nishikigoi tokens for free, while digital residents have to buy them, with the minimum price tagged at 0.0318 Ether (ETH).
Using NFT tech does not necessarily solve Japan's all-time low birth rate issue, but it does provide a novel and experimental way of raising money to aid the elderly in remote rural hamlets. The report by Yuri Group suggests that if the strategy sees success and is replicated in other villages, around half a billion dollars could be raised for rural Japan.
The concerning shrinking birth rates reported in April by the private sector group Population Strategy Council said 40% of Japan's 1,729 municipalities were on the line of extinction. To combat this, Prime Minister Fumio Kishida sees Web3 as a significant element in realising "Society 5.0," a strategy that seeks to develop a more sustainable and technologically advanced society using AI, IoT, and big data.
Despite being granted 10 million yen (~$62,500) by the ruling Liberal Democratic Party to test and implement Web3 tools, the project faced difficulties like explaining the technology and its benefits to the older generation. Additionally, low voting turnout and language barriers for overseas digital inhabitants were noted.
Amid all this, NFT sales volumes on a global scale have seen a slump. As per CryptoSlam data, global NFT sales volume is expected to be 45% lower in the second quarter of 2024, while June may end up as the worst-performing month since October 2023.
Nevertheless, Yuri Group believes that Japan, where anime, manga, and collectibles culture is high, has enough space for both useful NFTs and profile collectibles. They pointed out that the digital inhabitants of Yamakoshi use avatars that are anime-like or cartoonish, indicating the technological applications can have a more playful take alongside its societal use cases.
Published At
6/27/2024 2:00:00 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.