EMURGO and Cardano NFT and Tokenization service NMKR participated in a blockchain event in Japan to boost awareness of how local companies could utilize DAO (decentralized autonomous organization) tools and related Web3 technologies to raise capital and accelerate regional development projects.
In recent times, Japan has been taking steps at a national level to create a friendly environment for the development and use of Web3 businesses and technologies.
EMURGO’s Yoroi Wallet, NMKR, and Clarity Protocol have also been pre-approved as verified infrastructure tools by the Japan DAO Association, positioning the Cardano blockchain for early adoption by local organizations and companies seeking to set up DAOs.
This blog will further discuss NMKR’s localization strategy in Japan to drive the adoption of its tokenization platform for DAO-related purposes.
Japan is the first G7 nation to formally recognize DAOs as a type of LLC at a national level.
A DAO is an online-based company or organization in which decision-making powers lie within a group of its members. In the DAO model, no central authority chooses how to allocate resources, distribute revenue, hire new personnel, etc.
Japan’s DAO law allows LLCs to set up a DAO to conduct business locally – and more importantly – globally with fewer restrictions, by enabling them to raise capital in the form of NFTs and issue various digital incentive tokens.
Read more: What is a decentralized autonomous organization?
Now in Japan, there is potential for this new DAO-related law to:
- Give more flexible fundraising opportunities for ventures and organizations. In the past, it was usually crowdfunding, equity financing, or debt financing. Crowdfunding doesn’t allocate any rights to supporters and it is not possible for a supporter to sell their stake to others. The other traditional routes of fundraising are relatively burdensome and have higher barriers for smaller companies from an administrative and financial burden point of view.
- LLCs can now make and record decisions fully on-chain through member voting and the usage of the raised capital can also be decided through on-chain voting. This makes voting secure, transparent, and digital. (Voting is done and recorded through the usage of blockchain.)
- DAOs can issue all sorts of digital incentive tokens such as dividend tokens, service tokens, and contribution tokens to its members. The DAO membership token itself can also be traded on a decentralized exchange.
- Traditionally, any cryptocurrency has to go through many processes to gain listing at centralized exchanges due to the local crypto framework, but DAO membership tokens are not as bound by these processes due to their NFT properties.
- In the past, DAOs had been more idealistic due to the lack of a clear legal framework, resulting in liabilities. Now, potential DAO projects can set up an LLC/DAO in Japan.
Invited by EMURGO to the event in Takamatsu, Japan, NMKR was able to delve into the practical applications of DAOs, including hands-on workshops on creating Cardano wallets, broadening awareness of Web3 technologies, and showcasing real-world use cases and tools.
The overall objective for NMKR is to become the go-to platform for NFTs and token issuance in Japan for DAO-related initiatives.
To make this happen, NMKR has translated NMKR Pay, NMKR Docs, the NMKR landing page, and shortly, NMKR Studio into Japanese. Naturally, this will enable Japanese users to better understand and utilize NMKR’s platform services.
NMKR’s short-term goal is to launch a Proof-of-Concept DAO to show how effective DAO-based property management can be in Japan. This project intends to serve as a blueprint for future DAOs, demonstrating the benefits of decentralized governance and community-driven projects.
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