

Written by Miseon Lee, Dongin Kim, Minsun Cho
Executive Summary
Japanese local governments revitalizing local economies with Web3 technology
NFT and DAO initiatives are being progressively implemented to revitalize Japan's provincial cities and rural areas. Reports from local media indicate that over 160 varied projects leveraging Web3 technologies are underway in 46 prefectures of Japan. Web3 adoption by local governments coincides with a strategic shift by the Japanese government, moving from a focus on boosting resident populations to enlarging relational populations. This shift has catalyzed the integration of NFTs and DAOs in regional development plans.
Efforts to enhance practicality and utility such as digital resident ID NFTs
Japanese local governments are steadfastly working to promote tourism and reinforce community bonds. They are achieving this by offering incentives such as complimentary admission tickets to visitors who hold specific NFTs, upgrading the NFTs when the holders visit the district, or granting digital residency. Through the efforts of local governments to provide more practical and useful benefits, NFTs are evolving to meet the demands of a broader audience.
Approach to grow the pie with blockchain technology
As the digital economy grows, the operational scope for individuals and companies is increasingly transcending physical boundaries, extending to all corners of the internet. This expansion presents an opportunity for local governments and even the nation to broaden their influence beyond traditional geographical limits. Utilizing the scalability of NFTs to expand relational populations internationally, local governments can significantly enhance their economic footprint, thereby 'increasing the size of the pie' for everyone involved.
Japan Revitalizes Local Economies with Spread of Web3 Web3 Technology
The adoption of Web3 by local governments is spreading throughout Japan
Efforts to rejuvenate Japan's local cities and rural areas through NFT and DAO projects are gaining momentum nationwide. As of last October, more than 160 diverse Web3 and NFT initiatives were reported to be in operation across 46 regions of Japan. Japan is grappling with a demographic challenge, marked by 12 consecutive years of population decline and an aging population, where 29% are over 65 years old. In response, the Japanese government initiated the Regional Revitalization Act in 2014, aimed at stimulating local economies and addressing the population concentration in metropolitan areas like Tokyo. Significantly, the Japanese government has recently pivoted from focusing solely on increasing the physical 'resident population' to boosting the 'relational population.' This shift, occurring in 2018, emphasizes cultivating diverse interactions with local areas and residents, rather than just augmenting the settled population. This strategic redirection has resonated with local governments, which had hitherto only focused on the expansion of the settled population at that time.
Figure 1. Policies Applying Web3, NFT in 46 Regions of Japan in Progress