[NEWS] "Japan DAO Association" to be established to promote the development of DAOs and improve the environment

The Japan DAO Association will be established on April 1st as an organization that will create an environment for the healthy development of DAOs. An announcement of the establishment will be held in Shibuya on the same day. Members will be lawyers, administrative scriveners, DAO service development companies, and others.

Currently, there is a growing movement in Japan around DAOs, a new form of organization. Last year, the Liberal Democratic Party's Digital Society Promotion Headquarters and the Web 3.0 Project Team also made a proposal for the establishment of a "limited liability company type DAO," and efforts are accelerating. On the other hand, DAOs also face various challenges.

DAO is an abbreviation for "Decentralized Autonomous Organization." It is an "autonomous decentralized organization" that does not have a centralized administrator and determines its operating policy through voting by participants who share common thoughts, goals, and objectives.

DAOs have the following characteristics: "Anyone can anonymously participate in a DAO that they identify with, regardless of age, gender, organization, nationality, or race," "Each person can contribute to the development of the DAO by utilizing their strengths," and "By utilizing smart contracts in the management of the organization, transparency is high and operating costs can be reduced."

The Japan DAO Association explains that these characteristics are thought to be a solution to various problems caused by modern capitalism and neoliberalism, as well as problems caused by population decline. On the other hand, many people are skeptical of the potential of DAOs, and they point out that fraud cases and troubles are expected to occur. Therefore, self-regulation and the creation of a healthy ecosystem will be even more necessary in the future.

The world's first attempt to operate in the form of a DAO

As part of the rule-making process for DAOs, an amendment to the prefectural ordinance to enable fundraising through DAOs will be promulgated on April 1st. In light of this situation, the Japan DAO Association will bring together volunteers including lawyers, administrative scriveners, DAO service developers, Web 3.0 players, housewives, and students to formulate rules and templates for an autonomous, decentralized, and business-led organization, and to certify healthy and legal DAOs.

The Japan DAO Association also states that running a self-regulatory organization that serves as a government counterpart in the form of a DAO is a "world-first and challenging attempt."

Although they expect some trouble in the early stages, they have set a one-year proof-of-concept phase and aim to build it agilely with all stakeholders. They claim that this approach itself is "a big message to Japan and the world."

Working to formulate guidelines for DAO operation

The Japan DAO Association lists its goals as "creating a system that allows DAOs to develop healthily," "creating a model case of DAO in Japan and influencing the world," and "renewing capitalism and democracy."

The Association will work on the following as concrete future activities.

• Formulate guidelines for the operation of DAOs in Japan and support their practical operation
• Certify DAOs and DAO tools
• Provide templates for articles of incorporation, rules, and contracts
• Educate, raise awareness, and promote DAOs
• Manage DAO-related communities
• Collect opinions and make policy recommendations
• Accumulate and research practice and theory

The Japan DAO Association will begin as a general incorporated association, but because the founding members want to embody the philosophy of DAOs, although there will be a legal representative director, the members will act as a volunteer group to express their consensus and will when it comes to contacting the outside world and making statements.

Reference: Announcement
Image: Shutterstock

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