KEY POINTS
Yamakoshi, a village in Niigata Prefecture, Japan, is using non-fungible tokens (NFTs) to combat its decreasing population.
The village has faced significant depopulation issues since a major earthquake in 2004 led to widespread evacuations. Despite being deemed safe for return, only half of the original 2,200 residents came back, leaving the current population at around 740.
To address this challenge, Yamakoshi has launched the “Neo-Yamakoshi Village” project, which uses NFTs to support traditional Japanese culture and raise funds.
Central to this initiative are Nishikigoi NFTs, which act as digital “e-resident cards.” According to a report by Yuri Group, these NFTs have generated 120 ETH, approximately $423,000.
The Nishikigoi NFTs also function as governance tokens in the village’s in-house decentralized autonomous organization (DAO), allowing both local and global digital residents to take part in decision-making processes. To date, the Yamakoshi DAO has conducted six rounds of voting, influencing various local projects.
The project also employs the metaverse, creating a virtual replica of Yamakoshi where town hall meetings can be held. This platform allows both physical and digital residents to gather and engage in community discussions.
Takeuchi Haruka, the founder of Neo-Yamakoshi Village, emphasized the importance of preserving the village’s cultural heritage, stating, “No matter how small a village it is, the culture cultivated by the region is extremely valuable. I want people the world over to recognize this value, as I think it’s important for the future of Japan as a whole that it preserves the culture and spirit it has nurtured.”
This initiative is part of a broader trend of leveraging Web3 technology for socio-economic development. In a similar move, Japan Airlines launched an NFT project in February, partnering with Hakuhodo to convert local experiences into digital assets. This project aims to revitalize Japanese regions facing population declines, enhance regional tourism, and deepen visitor engagement.
