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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.
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.
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.
Sanjo and Tsubame Cities Launch NFTs That Personify “Manufacturing Companies”
A local revitalization project has been launched, where players can battle cards using NFT characters that anthropomorphize local businesses.
NFTs are a common gift that multiple municipalities have adopted as a first in Japan, as part of an initiative aimed at revitalizing the Niigata Prefecture cities of Tsubame and Sanjo. Planned and designed by student designers at the Japan Anime and Manga College, the cards feature anthropomorphized characters representing local companies and organizations involved in manufacturing.
Owners can receive special benefits such as event tickets and restaurant coupons that can be used in the area. Following the first release, "Prelude to the Founding of a Nation," the second release, "Scherzo of Dawn," has been released, adding a new function that allows users to take the characters on a pilgrimage to sacred sites.
▶Future outlook
This NFT, the first of its kind in Japan, is attracting attention as an initiative that aims to maximize the region's potential and create connections with local businesses.
An initiative to become "digital islanders" and think together about the future of the island
By obtaining a "Proof NFT" that proves digital citizenship of the island, you will not only be able to obtain local specialties, but you will also gain voting rights to decide the island's future.
Awashimaura Village in Niigata Prefecture is known for its traditional events, nature, and specialty dish "Wappa-ni," but it is facing a population decline problem. To address this issue, NFTs have been used to issue "digital islander certificates" and "shared ownership of the island's mural art." The aim is to create a connected population in Awashimaura Village and build a sustainable future.
Hometown tax donors will be provided with NFT art, which uses actual mural art designed by muralists Kensuke Takahashi and Shogo Iwakiri, as a digital islander certificate. They can also participate in a vote to decide the future of the island through the Awashima app "Shiriai."
▶Future outlook
The donations will be used primarily for education and child-rearing in Awashimaura village, and it is also hoped that they will revitalize the region by attracting people of child-rearing age from other prefectures.
Kashima City, Saga Prefecture, has begun accepting "Kashima Digital Resident NFTs" for hometown tax donations. By owning this NFT, residents can obtain tickets to Kashima City events, proposals for town development, voting rights, and more. Through this initiative, Kashima City aims to attract tourists and create a related population, with the ultimate goal of encouraging people to move to the city.
Due to the declining birthrate and aging population, it is becoming more difficult to pass on specialty products in Kashima City. Therefore, the aim is to get people interested in Kashima City through Digital Resident NFTs and revitalize the region through a new form of town revitalization using digital technologies such as Web 3.0.
Also in Kyushu, Satsumasendai City, Kagoshima Prefecture, is also working to attract visitors through NFTs. The first NFT art issued as a hometown tax donation item in Kagoshima Prefecture, "Satsumasendai x Covered People," can be presented at "Ekiichi," a souvenir specialty store in Satsumasendai, at Kawauchi Station, to obtain a commemorative NFT for your visit.
At the same time, you can receive original goods at the station market. Covered People, the collaboration partner, is an NFT community that has the motto "There is value in trivial things" and is characterized by its unique characters and unique worldview.
Resolving the problem of inheritance of local specialties through digital resident NFTs
The program provides residents with rights to actively participate in the town, such as tickets to events and suggestions for urban development, and aims to encourage them to move to Kashima City.
As part of a regional revitalization project, Kashima City in Saga Prefecture has issued the "Kashima Digital Resident NFT." The project aims to halt population decline, tackle issues such as aging, and promote the local charm, culture, history, and food across the country, while also attracting tourists and creating a related population.
Donated NFT holders will participate as "Kashima's supporters," and will work together to think about the future, providing event participation tickets, proposing town development, and more. The city's biggest goal is to attract people to move to Kashima City, and to that end, it plans to focus on revitalizing the town using Web 3.0 and other technologies.
▶Future outlook
By participating in the event, NFT purchasers will become aware of the charms of Kashima City, and efforts will be made to increase contact with the city and create a connected population.
In addition, Iizuna Town, Nagano Prefecture, has adopted the "Iizuna Town Hometown CNP2023" as a return gift NFT for hometown tax donations in collaboration with a character, and offers incentives filled with the charm of the region.
In order to encourage people to enjoy Iizuna Town, which is a thriving agricultural town with beautiful rural scenery and activity fields such as skiing, golfing, and camping, holders of the "Iizuna Town Hometown CNP2023" will receive a Pension Himawari accommodation voucher with one homemade pizza and one adult for one night and two meals as a special gift.
This NFT is designed in collaboration with CryptoNinja Partners (CNP), one of the largest NFT projects in Japan, and features the CNP character Yama.
The NFT's design also changes when you visit certain places in Iizuna Town, and by making a donation, you can enjoy the fun of the local government and a Web 3.0-like experience at the same time. Additionally, this NFT will come with a one-month trial right to a Discord channel within the CryptoNinja community "NinjaDAO," which is open only to CNP holders.
Iizuna Town's gift NFT was issued with the full cooperation of CNP as well as "Aryaum," a company that is committed to regional revitalization using NFTs. Aryaum also operates "Furusato Nozei NFT," a donation acceptance site specializing in NFTs, making it a leading player in gift NFTs.
A representative example of Aruyaumu is their work with the town of Yoichi in Hokkaido, which can be said to have sparked the trend of NFTs as return gifts for hometown tax donations.
This NFT is called the "Yoichi Town Mini Collectible NFT" and was created by illustrator Poki. There are 54 different designs for the NFT, featuring illustrations of wine, a specialty of Yoichi Town. Later, they collaborated with CNP for "Yoichi Town Hometown CNP2022," which attracted a lot of attention, with all 222 NFTs issued as return gifts selling out in just three minutes.
It is expected that Aruyaumu will continue to take proactive measures using NFTs, so it will be worth keeping a close eye on their developments.
A pioneer who created the boom in NFTs as hometown tax return gifts
Yoichi Town, home to the Nikka Whisky Distillery, has issued a hometown tax NFT in partnership with TrustBank.
Yoichi Town, Hokkaido, began offering "Yoichi Town Mini Collectible NFTs" as a gift in return for hometown tax donations on May 7, 2022. This case sparked the hometown tax donation NFT boom, making it a true pioneering example.
It was made possible with the full cooperation of "Aryuumu," which focuses on regional revitalization using NFTs, and has become a representative example for the company. There are 54 designs in total, based on the theme of wine, a specialty of Yoichi Town. NFT holders were given priority purchase rights to rare wines.
▶Future outlook
One set of 12 NFTs sold out immediately. Another set of 222 NFTs issued after that also sold out in just three minutes, and it is expected that the use of NFTs will continue to attract attention.
The use of NFTs is also seen actively overseas. Here, we will pick up some of the initiatives using NFTs by large companies.
First, RTFKT (Artifact), which was acquired by major sports brand NIKE, has granted holders of certain NFTs the right to exchange them for actual sneakers. Nike is also strengthening its efforts in Web 3.0, such as ".Swoosh," and there is a possibility that it will continue to develop services that effectively utilize its own brand and NFTs.
Also, Starbucks announced a service using NFTs called "Starbucks Odyssey," which became a hot topic.
This service is linked to the existing "Starbucks Rewards," and by collecting digital stamps that have been converted into NFTs, various benefits are given, such as participation in limited events and trips to coffee farms. At the moment, the beta version is being deployed, and Japanese people are not eligible to participate.
In addition, fashion brand LOUIS VU ITTON and prestigious soccer club FC Barcelona are also implementing unique initiatives using NFTs, and they offer various incentives. The use of NFTs with incentives is spreading worldwide, and this trend is expected to continue accelerating in the future.
A central figure in the digital fashion industry under the umbrella of NIKE
The digital sneakers sold out immediately after their release, and they are consistently traded at high prices on the NFT marketplace, demonstrating their presence in the digital fashion industry.
RTFKT (Artifact) is an NFT project specializing in digital fashion. It became popular for its high-quality digital sneakers, and now also handles digital fashion items in general, avatars, and toys.
In a virtual sneaker auction held by RTFKT in March 2021, it sold $3.1 million in the first seven minutes. In December of the same year, NIKE acquired RTFKT. It has made its presence felt in the digital fashion industry, granting NFT holders the right to exchange them for real sneakers.
▶Future outlook
The brand's popularity has increased even more since it became part of NIKE.
Starbucks' utility-focused NFT project
By partnering with Starbucks Rewards, attention and incentives will become even more attractive.
"Starbucks Odyssey" has attracted a lot of attention as Starbucks' NFT project. This refers to the company's entire NFT project, which focuses on utility.
This initiative includes "Journey Stamps" that can be obtained for free if certain conditions are met, and "The Siren Collection" which is on sale.
By collecting NFT-ized digital stamps, various benefits are granted, such as participation in limited events and trips to coffee farms. At the moment, the beta version is being deployed, and Japanese people are not eligible to participate.
▶Future outlook
It is expected that more unique bonuses will be added in the future, and this has the potential to become an NFT project that attracts global attention.
The Maison enters the Web 3.0 space with its first digital trunk
The NFT, which is based on LOUIS VUITTON's iconic trunk case, has become a popular NFT despite its high price of over 5 million yen.
In June 2023, LOUIS VUITTON announced a digital collectible NFT through the Maison's first "VIA Treasure Trunk," marking its full-scale entry into the Web 3.0 field.
As a product that symbolizes the brand's luxury and tradition, it features a design that combines modern luxury with functionality. This NFT was issued as a non-transferable SBT, and although it was expensive at approximately 5.86 million yen, it attracted a lot of attention as it allowed access to limited products and special experiences offered by LOUIS VUITTON.
In November of the same year, a limited number of 200 transferable digital collectibles were sold to holders of the same NFT.
▶Future outlook
In addition to trunks, there is a possibility that the brand will continue to leverage its enormous brand power to turn a variety of items into digital collectibles, which will become increasingly popular.
The commemorative NFT was sold for 162 ETH, creating a lot of buzz.
This world-renowned club, which is actively engaged in activities in the Web 3.0 field, will create new fan experiences through NFTs and other means.
FC Barcelona, a world-renowned soccer club, is running a Web 3.0 project called "Barça Vision."
In the past, this project has released "Masterpies-#1," a project themed on the legendary player Johan Cruyff, and "Unleash Your Passion," an environmental protection project themed on reducing plastic.
"Empowerment" is the second installment of the Masterpiece series, and its theme is empowering women. The motif is female soccer player Alexia Putellas, and participants have been given the right to meet her and receive the shoes she wears.
▶Future outlook
FC Barcelona is expected to continue to be active in the Web 3.0 field, and new NFTs are attracting attention.
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