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Shanyue Village in Japan has a history of more than a thousand years, and is also one of the birthplace of koi, but under the development of The Times, only 800 people remain.In order to achieve "rural revitalization", the residents' council proactively embraced web3 and introduced DAO for governance.The Shanyue Residents Council issued a resolution to issue the NFT artwork "Colored Carp", symbolized by koi, which went on sale late last year.The NFT is a digital art token that combines an electronic resident card from Shanyue.

The region's sharply shrinking population, lack of young workforce and abundant historical resources are the success of the NFT and CityDAO concepts in the field of urban innovation designed to help develop "online workforce innovation" in sparsely populated areas of Japan in the future.

Urban and rural areas, survival or disappear?

In Japan, Shanyue is a heavy snow area of 3 meters in winter, with rugged terrain and harsh natural environment.It is also the birthplace of the "samurai culture", and now more and more enthusiasts around the world follow this project.A major earthquake 17 years ago struck the site, so devastating that the entire village was temporarily evacuated.With about 2,200 local residents at the time of the earthquake, now about 800, an aging rate of over 55%, and the area is on the verge of extinction.

Last year, the NFT program was approved by Nagaoka and promoted by Yamasamura, offering digital art in the samurai symbol and bundling the region's electronic resident card.Earlier, the small Nordic country of Estonia launched the world's first electronic national program in 2014.Even if you are not a citizen or resident of Estonia, you can register online and obtain some of the services in the country, currently registering over 80,000 people.

With the declining population, the population is unlikely to increase in the short term.But after the NFT launch, people from the rest of the world are scrambling to participate.Importantly, as the region's concept of no permanent population is opening up the sharing dividend of the virtual population, just as Estonia gathers human resources from all over the world.

Profit from the NFT is not the ultimate goal

In the beginning, people who buy Colored Carp from all over the world can conduct visual transactions on the blockchain, proving this equity to generate a global digital population, and use DAO funds to promote the required projects and problem solutions in the Mountains based on NFT sales profits.The technology eliminates traditional government engineering corruption and opacity, as all proposals, votes, and vault uses are all queried on the blockchain in real time and traceable.

But blockchain to the local society changes far more than that, mountain residents through NFT holders become digital residents, and in the dedicated community chat (using Discord), real-time and other parts of the NFT holders share regional development ideas and business plan, successfully established a as far as possible using collective democracy method (such as collecting members' opinions and vote) area.

CityDAO's innovation is only just beginning

CityDAO requires three prerequisites: first, regional development is in a lagging economic crisis of aging and fewer children; second, local governments actively embrace innovative technologies and seek the reform path of open government affairs; third, regional public opinion favors digitalization and collective democracy.The CityDAO model also faces resistance to government concerns about the loss of regulatory control, especially power rent-seeking space from invisible corruption; in the long run, populism and nationalism and local superiority may be hostile to global DAO governance, which is more emotional.

But there is no denying that CityDAO's experiment is in its early development, and no one can give standard success formulas.But the success of the mountain-crossing model is not over yet.Now it is only in the pure NFT sales profit period. With the deepening of DAO global governance and the growth of the vault, it will cooperate with more blockchain native projects, which will bring more considerable global revenue.The ShanYue NFT is divided into two series, one with a koi carpet and a generated koi picture.At present, more than 800 NFT in the first two batches have been sold out (priced at 0.03eth), and the third batch is yet to be determined.Instead of selling all the nft in one time, they sell one batch, then conduct community construction, and sell the next batch according to the situation. The current floor price is 0.35E.

As an attempt of the traditional social autonomous region organization to seek a breakthrough from web3, the Shanyue project is still in the early exploration stage.With hype, it is far less punchy than the boring ape project of encrypted native.Perhaps it is now unknown; insufficient traffic; not enough trend.However, the maximum chance of governance to change communities and villages together may be the core value of web3.

This social experiment, which will provide a model for countless town revitalization, and each participant will witness the innovative history of the metaverse and digital assets in the physical world.In the near future, DAO in the Shanyue region will focus on creating value for digital residents, including building homes that will allow global residents with NFT shared interests to move in and provide special experiences, thus providing real meta-cosmic experiences for digital residents.The initial plan is to attract the wisdom, network and resources of 10,000 digital residents first. No matter what the real society is, Shanyue has established its own blockchain social governance system, forming a sustainable "Shanyue model".

 *The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of SparkDAO. Every investment and trading move involves risk, you should conduct your own research when making a decision.