Policy advocacy for the DAO ecosystem to the government

[GENERAL] Name and surname of main applicant

Kuniaki Abe

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Not Incorporated)

[GENERAL] Co proposers and Additional applicants

• Kotro Motoshima
• Shota Sunazuka
• Igarashi Naoki
• Kuwahara Aiki

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

6

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

Yes

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

Tax Deductible Donations by Direct Donation of Crypto Assets

Staking operations with donated crypto assets

Introduction of a voting system in the distribution of treasury

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

Yes

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

The key issue is the inclusion of accounting standards in the government's (IRS) tax answer regarding its view of tax deductibility of crypto asset donations.

In the meantime, research has been conducted by several attorneys and tax accountants regarding the details of the taxation system, and we are moving with a high likelihood under the current legal system.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs

Not for software, but for rulemaking content.

[SOLUTION] Please describe your proposed solution.

Policy recommendations to the government as RuleMakersDAO, and through collaboration with the government and ministries and agencies.

The Japanese government is considering the legalization of LLC-type DAOs. Therefore, by making policy recommendations on promising DAO concepts, we are drawing a roadmap for Japan to take the initiative, including rulemaking, through the most advanced demonstrations, etc. in the sandbox and other areas.

Tax deductibility of direct donations of crypto assets

We are currently working with several tax accountants and lawyers to investigate the possibility of direct donation of crypto assets to public interest foundations in response to the current taxation system, and are working toward the realization of this through Diet members in the direction of including this information along with accounting standards in the tax answer published by the Commissioner of National Taxes without changing the law.

In addition, we have been able to connect with one of the most authoritative professors on crypto asset taxation in Japan, and will seek to collaborate with him in this activity.

We will also be working with a lawyer from one of Japan's top law firms who is in charge of taxation for a working group of the government's web3PT.

Staking operations with donated crypto assets

The Cardano Foundation, in collaboration with the UNHCR, is working on a policy proposal for a model that would operationalize the stake-pooling model in Japan. We will continue to work on the interpretation of the taxation aspects of this model.

Introduction of a voting system for treasury distribution

By establishing a distribution scheme from foundations to NPOs based on a community voting system in Catalyst, we will promote the realization of a model in which funds are provided to projects desired by the beneficiaries.

By promoting these measures, we will develop a leading use case for DAO corporations in Japan.

In order for this project to succeed, it is necessary to involve all kinds of experts. This is where BGIN, the global academic network for blockchain launched by Japan's Financial Services Agency, comes in. BGIN is headed by Nat Sakimura, Chairman of the OpenIDFoundation, and Shin'ichiro Matsuo, a professor at Georgetown University.

I attended #9 in Australia in November and established connections with BGIN members and Georgetown University's FSA and financial business affiliations.

BIGIN is conducting research on Accountable Wallet as a joint project with Georgetown University, and is investigating the use of Verifiable Credential as a way to prevent Wallet deposits of money of unknown origin. The goal is to achieve accurate KYC by using this method.

Their research has a high affinity with our project, and we are currently coordinating to collaborate with them.

日本後翻訳シート

[IMPACT] Please define the positive impact your project will have on the wider Cardano community.

Cardano's social value is expected to increase, which will lead to greater recognition in Japan, and since Japan is one of the G7 countries, it will have the effect of communicating its value not only to the Asian region but also to the rest of the world.

As a result, the valuation of ADA is expected to improve.

In addition, the establishment of DAO use cases and a new DAO ecosystem could serve as a guidepost for the Cardano community to establish DAOs based on themes they wish to promote and issues they wish to resolve.

In Japan, the use of crypto assets is very limited due to the high tax burden on crypto assets. The option of donation has been difficult to obtain in the past.

However, if this project succeeds, it could change that environment, and we now have a great opportunity. The community will have a new option for ADA assets, and a new option for solving social problems.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

As a RulemakersDAO, we have already made policy recommendations that have been published in national policies.

Yesterday, we participated in the DAO Hackathon at the headquarters of the ruling party, where related ministries and major companies also participated, and made policy proposals.

The policy proposal has already been submitted to the Diet members and is already in action.

We have a network with FSA staff on assignment in the U.S., and are already working on coordination.

We are in talks with BGIN, an international blockchain network, to collaborate with them. At a conference in Australia.

Team members are also members of specialists in each of the areas required for this project. For more details, please refer to the biographies of the team members.

[Project Milestones] What are the key milestones you need to achieve in order to complete your project successfully?

To date, we have already prepared a policy proposal, made two policy recommendations to lawmakers, and made a policy recommendation at the headquarters of the ruling party, where only a limited number of members are allowed to attend. We have also promoted the Cardano ecosystem, Catalayst, at the headquarters of the ruling party in Japan in the presence of Diet members, government agencies, major corporations, and the media.

We will submit a report on the content of this report.

Report on progress, Cardano engagement

Report on progress, Cardano engagement

Report on progress, Cardano engagement

Report on the results of progress against the plan and on Cardano's engagement, as well as on the expected prospects beyond it.

[RESOURCES] Who is in the project team and what are their roles?

1.Kuniaki Abe: Director, DID/VC Operator

External presenter and direction on direction, stakeholder management, reporting

Back Ground：

2006:Genetic research on oil palm at Institute for Molecular Biology, University of Tokyo (FY2003 Industrial Technology Research Grant Program)

2007:General medical equipment vendor (senior position at headquarters: forecasting, business planning, marketing, product management)

2022:Independent to focus on distributed ID solutions business

2022:Selected by the Japanese government for a DID/VC project as a joint venture with a leading Japanese company

2023:Founded Infinect. Inc

2023:Negotiations are underway with a few giant Japanese company to launch a project using distributed IDs.

Past Adopted Projects

・In Catalyst

Fund6:DID Solutions for Local Governments(Completed)

Fund7:Atala Japanese Translation ＆ CNFT(Completed)

Fund8:AtalaPRISM hackathon with devillage(Completed)

Fund10:For the Enterprise Domain, Decentralized Identity Solution Implementation

In Japanese Nation

・TrustedWeb

National projects in the area of advanced technology (DID/VC) in Japan.

・RuleMakersDAO

Giving policy proposal for low makers, agency, etc relation.

・AtalaPRISM PioneerProgram

・SPO

Linkedin

Facebook

Twitter

2.Yuta: Cardano Ambassador, Certified Public Accountant, SPO

Provides information related to Cardanos, liaises with Cardano related organizations

Design and implementation of the integration of stake pool functions into a foundation-type DAO.

Back ground:

He is a former CPA with one of the Big 4 audit firms. He is also a long-term CArdano Ambassador and has made a significant contribution to community building in Japan.

Facebook

3.Motoshima Kotaro: Lawyer and President of RulemakersDAO

Initiatives as RulemakersDAO, design around legislation

Back ground:

Attorney at Law

Mori Hamada & Matsumoto, one of the largest law firms in Japan

Governance making when implementing distributed identity solutions, and designing business flow and UI/UX designs that are legally compliant based on an understanding of personal information laws and regulations.

Background

2017: Graduated from the University of Tokyo Faculty of Law and entered the University of Tokyo Law School in the same year.

2019: Withdrew from the same law school and founded zingzing, a general incorporated association.

2020: Registered as a lawyer and joined Mori Hamada & Matsumoto. Also begins working as a social coordinator.

2022: Seconded to Daiichi Sankyo Co.

2023: RuleMakersDAO board member

 

Specialties

He has experience in startups, technology (FinTech, web3, metaverse, data/personal information/AI, medical/pharmaceutical/biotech, R&D in general, etc.), and China, from both the startup/researcher side and the VC/larger company side, and has been a business consultant and a member of the board of RuleMakersDAO. He provides legal support from both the startup/research side and the VC/larger company side, drawing on his own entrepreneurial experience and experience in managing entrepreneurial communities, and incorporating a business consulting perspective. In addition, he is also involved in children's rights (including on line counseling by lawyers), refugees, and legal education.

 

Other Activities

He has been involved in the RuleMakersDAO, which provides policy proposals on social issues from a legal perspective, through the Diet Members' Caucus. Nomad visa'' was included in the basic policy of the government in 2023.

Linkedin

Facebook

4.Sunazuka Shota: Social Sector professional, Web3 researcher, RuleMakersDAO

Researcher, Social Impact Measurement Design, Director of a BPO company in the Philippines

Background:

He previously served as a director at an international NGO, providing employment opportunities to the urban poor youth in the Philippines. Additionally, he has completed the MIT Micromasters in Data, Economics, and Design of Policy, possessing both practical and academic experience in the social sector.

In recent years, he has been active as a web3 researcher and DApps developer, driven by his interest in the public application of web3 technologies. In this project, he plays a leading role in research, drawing from his expertise in both the social sector and web3 perspectives

Linkedin

5.Naoki Igarashi: Data Scientist and AI Engineer at Financial Technology, Rule MakersDAO

Design related to asset management using DAO type foundations and crypto assets. Design of AI utilization in DAO-type organization operation.

Background:

• Experience in analyzing and developing AI model in asset management
• Expertise to apply AI system to works including generative-AI

Career History

2019/4 - Present: Simplex.inc

• Managed AI development project for securities company
• Developed AI model and system to improve marketing strategy for equities and fixed-incomes
• Analyzed trends of equity markets and fixed-income markets
• Developed face verification AI model for account opening system

Education

• 2017/4

 https://www.nature.com/articles/s41467-020-19905-4

• 2013/4

Linkedin

6.Kuwahara Aiki: Tax Advisory, Reorganization, International Taxation

Involved in designing the taxation system

Back Ground:

He is a highly professional person who belongs to one of the Big 4 audit firms.

And he has also worked on projects for non-profit organizations and is familiar with the areas of our project scope.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.

• Project management and direction
• Report management
• Coordination and collaboration with stakeholders
• Policy recommendation development
• Social sector and foundation information research
• Legal research
• Tax research
• Other Research
• Presentations to the government, ruling party(Jimintou) web3PT, and public agencies

1.Project Management and Leadership

Project Manager Salary: 2,000,000 JPY

Administrative costs (office supplies, communications, etc.): 500,000 JPY

Other expenses: 500,000 JPY

Total: 3,000,000 JPY

2.Report Management

Data management software: 300,000 JPY

Printing costs: 200,000 JPY

Staff hours: 500,000 JPY

Total: 1,000,000 JPY

3.Cooperation with Stakeholders

Conference and workshop costs: 1,000,000 JPY

Travel and lodging: 500,000 JPY

Total: 1,500,000 JPY

4.Development of Policy Recommendations

Hiring experts and consultants: 1,000,000 JPY

Database access: 300,000 JPY

Workshops and focus groups: 700,000 JPY

Total: 2,000,000 JPY

5.Research for social sector and foundation information

Subscriptions to publications: 300,000 JPY

Access to specialized databases: 200,000 JPY

Consultant fees: 500,000 JPY

Total: 1,000,000 JPY

6.Legal and tax research

Legal & Tax Consultant Fees: 500,000 JPY

Access to legal databases: 300,000 JPY

Total: 800,000 JPY

7.Method of allocation of funds (e.g., DAO type allocation)

Technology platform: 300,000 JPY

Expert consultation: 200,000 JPY

Total: 500,000 JPY

8.Reserve Fund: 1200,000 JPY

Total: 11,000,000JPY ( 200K ADA )

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

Through this project, it is highly likely that Carcano will be able to increase its presence and promote a positive image of Carcano in the public interest at a high level.

Specifically.

The staking operation of the fund and the DAO-type distribution method will be based on the Cardano model, and will be carried out while providing information to the government.

The project will be carried out in collaboration with politicians, ministries and agencies including the Financial Services Agency, and NPOs including the three web-based academic associations, and is expected to increase the presence of Cardano and related organizations on a national level.

As a result

・Increased probability of adoption of projects using Cardano

・Increased number of nodes due to increased ecosystem adoption using the staking system

・Increased number of transactions

・Increased number of use cases

These are expected to.

[IMPORTANT NOTE] The Applicant agrees to Fund Rules and also that data in the submission form and other data provided by the project team during the course of the project will be publicly available.

I Accept