Japan’s Digital Agency to set up DAO

Japan’s Digital Agency has revealed its plan to establish a decentralized autonomous organization (DAO) to study how it can create new values and help solve the country’s social issues. 

The plan was unveiled during the fifth meeting of the agency’s “Web 3.0 Study Group” held on November 2. The agency was set up last year tasked with studying ways to promote the use of Web technologies, such as NFTs. 

While assessing the risks and benefits to be gained from using DAOs, the committee said it will draft measures to develop a suitable business environment and protect users. A study will be conducted to assess DAOs from technical, economic, and governance perspectives while the Web 3.0 Study Group will share DAO usage experiences and provide standardized platforms and tools.

It will examine possible measures that can make it easier for start-ups to raise small amounts of funds through DAOs, and ways to revitalize Japan’s content industry and local communities through the issuance of NFTs.

The group will also discuss the benefits and challenges of permitting legal status to DAOs while considering a tax regime. 

The Web 3.0 Study Group was formed in September to help Japan’s government examine how to apply blockchain technologies such as the use of NFTs, as part of the “Priority Plan for the Realization of a Digital Society” approved by the Cabinet in June.