Japan Crypto Asset Business Association announces “Guidelines for building regional revitalization DAOs”

Guidelines for building regional revitalization DAOs

On the 12th, the Japan Crypto Asset Business Association (JCBA) announced the “Guidelines for the Construction of Regional Revitalization DAOs” in order to promote regional revitalization DAOs that utilize Web3.0 technology and protect users. These guidelines aim to encourage organizations that utilize NFTs and DAOs to disclose basic information.

DAOs (distributed autonomous organizations) are based on distributed ledger technology, including blockchain, and are characterized by autonomous operation by token holders, but a clear definition has not been established.

The purpose of the Regional Revitalization DAO is to use NFTs and DAOs to form a strong community with participants both inside and outside the region and to revitalize regional revitalization activities. However, as the field grows, there are concerns about the lack of a standardized mechanism to protect users.

In the case of DAOs that do not have corporate status, there is a risk that liability may become unclear in the event of a contract with an outside party or a problem occurs, and issues have also been pointed out regarding real estate acquisition, bank account opening, and tax processing.

The main points of the guidelines are as follows.

1. Disclosure of corporate form: Operators of regional revitalization DAOs must provide participants with information such as whether or not the DAO has a legal personality, its type, and the reason for selection.
2. Disclosure of activity purpose and overview: It is required to provide information that will affect the decision to hold tokens, such as the purpose and overview of the DAO.
3. Legal rights of assets and accounting and taxation: It is necessary to disclose information regarding the attribution of token purchase price and the legal position of participants.

These guidelines strengthen user protection by increasing transparency in regional revitalization DAOs and enabling participants to make informed decisions. “White papers,” “Terms of Use,” and “Business Reports” are recommended as means of information disclosure.

In formulating the guidelines, JCBA conducted interviews and fact-finding surveys with major regional revitalization DAOs, including the Yamakoshi Residents’ Council, the Sendai City Economic Bureau’s Industrial Promotion Division, and Smanu Lab Co., Ltd., to explore the current situation and issues.

As a result, although the amount of funding related to regional revitalization DAOs is currently relatively small (about 100 million yen at most), the number of participants is becoming increasingly diverse. On the other hand, there are few DAOs with legal personality, and as a result, the legal rights and obligations are unclear.

connection:Liberal Democratic Party plans to hold “DAO rulemaking hackathon” to explore legal development to support DAOs

Domestic Web3 strategy and DAO

It can be said that expectations for DAO are high in the domestic Web3 strategy. In November, the web3 project team of the Liberal Democratic Party’s Digital Society Promotion Headquarters hosted a “DAO rulemaking hackathon” to pursue legal support against the backdrop of the increasing use of decentralized autonomous organizations.

Furthermore, on December 13th, “DAO FORUM 2023” sponsored by RULEMAKERS DAO will be held, and as a side event, an online event sponsored by Gaiax Co., Ltd. “Possibilities of regional revitalization DAO – Creating the future of the region with DAO – ” will be held. Hide Kawasaki, executive director of the Democratic Party’s Digital Society Promotion Headquarters web3PT and a member of the House of Representatives, will also be on stage to discuss the use of DAOs in regional revitalization and its potential.

RULEMAKERS DAO is an organization that engages in rulemaking from a private perspective and aims to form more fair and progressive social rules. He also cooperated and spoke at the Liberal Democratic Party’s DAO rulemaking hackathon in November.

connection:“We want to create an environment where users can maximize their potential” Liberal Democratic Party launches DAO hackathon

Japan’s Web3 Policy Special Feature

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