Currently, the use of NFTs is spreading among local governments. In particular, efforts combining this with hometown tax donations are attracting attention, and it seems likely that the number of such cases will continue to increase in the future. There are also several initiatives overseas that incentivize NFTs.
Here, we have compiled examples of NFT use and future prospects.
Rapid expansion of NFT use by local governments
Starting with the NFT project "Nishikigoi NFT" in the Yamakoshi region of Nagaoka City, Niigata Prefecture, the use of NFTs by local governments is accelerating.
"Nishikigoi NFT" functions as an NFT that indicates that you are a "digital villager" of Yamakoshi, and various initiatives are being carried out through the "Yamakoshi DAO," which is now well-known as a regional revitalization example that utilizes Web 3.0 elements.
When it comes to regional revitalization, many people may recall "hometown tax," which has been attracting attention in recent years and has seen an increase in users. Hometown tax is a system that allows people to make donations to their hometowns or local governments that they want to support, and was launched in 2008.
By making a donation, you can receive local specialties as a gift from the local government, and any donation amount over the self-payment amount of 2,000 yen is eligible for a deduction in full, making it a very advantageous system.
An increasing number of local governments are now offering NFTs as gifts in return for hometown tax donations. There are a variety of items, including digital art in collaboration with local specialties and tourist destinations in each local government, and NFTs with original designs by illustrators with ties to the local governments.
Niigata Prefecture Hometown Tax NFT
In particular, Niigata Prefecture, the birthplace of "Nishikigoi NFT," has been very active in using NFTs by local governments. Sanjo City, Niigata Prefecture, has adopted the NFT trading card "Tsubame-Sanjo NFT Guardian of the Craftsman" as a common gift for hometown tax donations with Tsubame City. This is the first time in the country that a common NFT gift has been adopted by multiple local governments.
"Tsubame-Sanjo NFT Guardian of the Craftsman" is a personification of manufacturing-related companies and organizations, mainly factories in Tsubame-Sanjo, and owners will receive benefits such as event participation tickets and restaurant coupons that can be used in the area. In the announcement, it was stated that they would also collaborate with "Tsubame-Sanjo DAO" to revitalize the region.
In addition, Awashimaura Village on Awashima Island in Niigata Prefecture has issued an "Island Resident Certificate NFT" that allows people to become "digital island residents" through hometown tax donations. Incentives for digital residents include the right to participate in events on Awashima, local specialty fish and sake, and voting rights to decide on initiatives for the island.
Not only can residents receive local products as in the past, but they can also think closely about the future of the local government they support, which could be said to further enhance the meaning of using hometown tax donations. Note that similar initiatives that grant rights to digital residents can be seen in other prefectures as well.
