Japan: Digital Ministry Will Launch Own DAO to Understand How They Work

2022-11-04 14:21:05

The newly-established Digital Agency of Japan said it would establish its own decentralized autonomous organization (DAO) to better understand its applications before permitting them legal status.

The Japanese government established the Digital Agency last year to better facilitate the integration of technology into Japanese society. As part of its efforts, it created the Web3.0 Study Group to better understand how to utilize blockchain-based technology.

During its fifth meeting on Nov 2, the Web3.0 Study Group decided to establish a DAO. As blockchain networks lack any centralized authority, members will often form a DAO in order to make decisions on behalf of the protocol.

The Purpose and Goals of the Japan DAO

In its announcement, the study group laid out its purpose for creating the DAO as well as its goals. The study group’s overall purpose is to better understand the application of blockchain technology.

In this regard, creating a DAO can help the study group appreciate its possibilities, limitations and overall user experience. Based on its experience with use cases, the study group said it would share these results and create a template.

As part of its role within the DAO, the study group will design a governance token, and decide how it should be distributed. Other crypto-focus tasks include opening a digital wallet and coordinating gas charges, which are the fees behind crypto transactions. In addition to these tasks, the study group will determine voting methods and how the DAO should be organized.

Initially, the core members of the DAO will consist of the study group itself, as well as the related parties within the Digital Agency. However, it added that the scope of membership would gradually expand to include members permitted by the Web3.0 Study Group. It concluded that the project would go on as long as the study group did, but could persist if recommended.

Japan Crypto Reorientation

The Japanese government established the Web3 Study Group earlier this year, as part of its reorientation towards cryptocurrencies. Japan’s new prime minister Fumio Kishida had led the charge behind this renewed approach since coming to power last year.

In his address to the national legislature in September, he prioritized the integration of web3 into the Japanese economy and society. This more favorable approach to cryptocurrencies made Binance reconsider entering the Japanese market, after a failed attempt four years ago.

The country has also made a series of legislative changes surrounding cryptocurrency regulation. For instance, it may change its remittance rules to include crypto exchanges, who would then have to disclose information about customers and transactions. Additionally, the country’s crypto exchange regulator is poised to amend rules, which could see more cryptocurrencies available on domestic exchanges.

(Article of BeInCrypto https://beincrypto.com/japan-digital-ministry-launching-dao-understand-work/)

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