Gaiax Mine Aramu, Gaiax Corporation: ‘Stablecoin is an important piece in the realisation of DAOs’ - what he really means.

Stablecoin is highly compatible with DAOs as a secure currency.

It will have a significant impact on dApps, which are completed on Web 3.0.

Amendments to the law will increase operators' activity.

--What are your thoughts on how stablecoin will be utilised in Japan in the future, following the implementation of the amended Funds Settlement Act? In addition, what impact do you think will be seen in Japan in the future?

Mine Aramu: Stablecoin has not been legally defined until now. The tendency in Japan is often not to use them because they are dangerous until they are legally defined. Therefore, although there has been demand for stablecoins, there has been no movement to actively utilise them.

However, with the passage of this bill in June last year and its implementation in June this year, we now have a clear idea of what can be done in this way, and businesses are finally in a situation where they can start to move forward.

Until now, the only way to move money by first linking it to smart contracts was with crypto assets for which crypto asset exchanges had obtained permission from the FSA. However, conventional crypto assets are currently very difficult to use in terms of money transfers because of the risk involved in simply holding them, as large price fluctuations can occur.

Stablecoin, on the other hand, is very attractive because there is no risk of such price fluctuations. It is particularly attractive in areas where you want to move money by completing smart contracts.

We believe that dApps, which are completed on Web 3.0, will have a significant impact. For example, the demand for stablecoins will increase in the creation of Web 3.0-complete applications, such as games and the sharing economy.

Dissemination of DAOs essentially.

--What specific initiatives are you planning to take?

Mine: A very important aspect of this initiative is to ‘manage money with DAOs’. When managing money on a smart contract basis, in other words on a programme basis, there are situations where we want to manage the money securely and within our own scope.

For example, there is actually a DAO running on a programme completion called ‘Nouns DAO’, an NFT-based community started by members called ‘Nounders’, a combination of founders and Noun, with one NFT every day. It sells them.

The DAO is characterised by the fact that users who have purchased NFTs can propose to use the Ethereum (ETH) collected through the sale of NFTs, saying ‘I want to use this Ethereum for ◯◯◯’, and if they obtain approval by voting, they can use the money.

On the other hand, if a problem occurs with the Ethereum used in Nouns due to external factors, the price fluctuates and the funds may decrease.

In the case of Nouns DAOs, the funds are managed on smart contracts, their usage is proposed and a vote determines how they are used. The fact that the funds are actually managed in such a way is good, but the volatility of Ethereum is a bottleneck because the funds are reduced. Another aspect, the issue of not being able to participate in a DAO without purchasing crypto assets, also raises the barrier to entry for users.

What is a good way to manage funds in a DAO is ‘something that has low barriers to participation and can be managed securely and smart contract based’.

DAOs are fully rule-based, programme-based, decentralised and autonomous organisations, so they need to be able to not only manage but also transfer and distribute funds in a programme-complete manner. The relatively low volatility, safety and convenience of use has increased the demand for stablecoins and will continue to attract attention in the future.

As we are an organisation that provides support for DAO formation, etc., we first want to spread awareness that stablecoin is money that can be used safely. We then plan to promote stablecoin as a circulating currency for DAOs.

--What are the important aspects of this initiative?

Mine: The important point is the low risk in fund management. It is also important that everything can be achieved on a programme basis.

In a DAO, decisions are made and funds are transferred according to rules. I think the best way to transfer funds is to have a unique crypto asset circulating on the DAO. Bitcoin is a typical example of this, but there are problems with the registration of crypto assets, and the hurdles to actually doing this now are very high.

In that respect, with stablecoin, there is no hurdle to increase the value, and it functions as money that can be used on smart contracts. Therefore, we believe that stablecoins are probably the key piece to realising DAOs.

We will strive to promote DAOs and stablecoins essentially.

--Please tell us about the vision that Gaiax hopes to realise through the ‘stablecoin x DAO’ initiative, as well as your thoughts on how you intend to promote it in the future by utilising your company's strengths.

Mine: We would like to support the establishment of DAOs and make efforts to solve social issues and problems faced by companies and local authorities. While there are not many DAOs established in the world yet, we have accumulated experience and knowledge in establishing DAOs by conducting tests with multiple companies and local authorities, as well as in-house. We believe this is a significant advantage over other companies.

In the future, we will continue to work with issuers and intermediaries of stablecoins. Currently, issuers are the most active players in stablecoin-related activities, but we would like to contribute by taking a position on the user side and creating concrete examples.

We will strive to promote the essential spread of DAOs and stablecoins while spreading knowledge.

Profile.

Aram Mine

Aram Mine is the head of Gaiax's web3 business division, a board member of the Japan Blockchain Association, and a visiting researcher at the SIT Research Institute at Shibaura Institute of Technology. He runs the information website Blockchain Biz and has been involved in the publication of three books on blockchain. He is also involved in the system development of the Beautiful Village DAO with the towns of Chigashira, Tottori Prefecture, and Matsuzaki, Shizuoka Prefecture, and in the development of a LiDAR network for smart cities in collaboration with Waseda University, Shibaura Institute of Technology, and others. He is also a member of the ISO/TC307 National Deliberative Committee for developing international standards for blockchain.

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