Japanese LLC DAO where 1 million people can join and contribute using Cardano's Dapps (From Japan to the World DAO)

[GENERAL] Name and surname of main applicant

Kotaro Motoshima

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

Entity (Incorporated)

[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)

So that 1 million people can easily join in using Cardano's Dapps (yoroi, NMKR, Claliry),

Ownership NFT in LLC DAO, made possible by a legal amendment by the members, sold for 1 ADA.

[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.”

As a premise, prior to April 22, 2024, it was basically impossible in Japan to raise funds in the form of DAO, grant decision-making authority to its members who contributed the funds, and conduct any business, while guaranteeing the anonymity of the members. 

However, at RULEMAKERS DAO, where the project member serves as the co-founder and the community manager, the project member took the lead in compiling the opinions of the private sector, made recommendations, and had the laws and regulations amended, and from April 22, 2024, the above scheme can now be realized through the use of a limited liability company (Godo Kaisha). This is a very advanced revision of laws and regulations even by global standards.

In addition, this LLC DAO requires a high level of knowledge of Japanese law as a basis for drafting articles of incorporation and regulations, designing tokens, etc. However, the members of this project, who are attorneys, are experts in this field, the member of this project, who is lawyer, specialize in and have experience in this practice, so he can handle this without any problems.

In addition, the following tools are required: an ownership NFT sales tool for fundraising, a token grant tool, a voting tool, and a treasury management tool. However, the project members cooperated with the development company to have the tools support the Japanese language and Japanese law. Therefore, by using Yorio, NMKR, and Clarity, the necessary tools have been secured.

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

Yes

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

Although there are no tools to be developed at this time, we will prepare the contracts, articles of incorporation, rules, various legal documents, token designs, etc. necessary to form a DAO in Japan, which will themselves be made public and available to all.

[METADATA] SDG rating

The DAO's work with the Japanese countryside, such as Shikoku, is consistent with the goal of 11 sustainable cities and communities, as it will work with the rural areas of Japan.

Since the goal is to ultimately achieve transparency, credibility, equal decision-making, and collaboration among one million people worldwide, this in itself will lead to peace and justice, and is consistent with the 16 Peace, Justice and Strong Institutions and 17 Partnerships for the Goals. 

[SOLUTION] Please describe your proposed solution

日本語はこちら：

https://docs.google.com/document/d/1v2g6MRE0DZSgSHRQLK5L1ImHV_RpIPk6KHlr4D7XXgE/edit?usp=sharing

Problem awareness

Although web3 technologies and ideas are technologies and ideas that should become the infrastructure of all areas for everyone, the current situation is that it is difficult for only some people in the financial area to participate in them. In particular, few people have experienced the concrete benefits of Cardano's Dapps and findings in the real world.

There are few examples of DAOs embodying one of the ideals of DAOs, where many like-minded people contribute a little bit of money and effort to each other, make decisions, work together toward a goal, and accomplish something big, and many people are skeptical about the potential of DAOs.

Outline

In the form of LLC DAO, which has become possible to form after the members of this project managed to revise the laws and regulations, we will create a DAO (From Japan to the World DAO “FJTW DAO”) in which anyone can casually participate while using Cardano's Dapps (Yorio, NMKR, Clarity), based on the knowledge that Cardano has accumulated to date.

In order to have participants experience the potential of DAOs and Dapps, and to communicate this to the public, we will design a DAO that is simple and has a strong impact. Specifically, we will eventually gather 1 million people who will become an owner of LLC DAO by having them purchase NFTs at 1 ADA per person. The 1 million people will vote to distribute the collected ADA among (1) an autonomous decentralized festival, (2) autonomous decentralized land and building utilization, and (3) autonomous decentralized farmland utilization, and each person will be involved in each project as a contributor. This time, as a base building, a kick-off event will be held, a DAO will be launched, a community manager will operate as a DAO, 20,000 owners of LLC DAO exceeding the largest DAO project in Japan will be recruited, and owners of LLC DAO will be involved in their own contribution activities while using the funds collected to launch the projects as voted on by the participants. Start the project.

●Specific outline

Business to be conducted

(1) Autonomous decentralized festivals, (2) Autonomous decentralized land and building utilization, (3) Autonomous decentralized agricultural land utilization

Method of recruiting employees

Using NMKR, sell employee rights NFT for 1ADA (those who have ADA can send money, those who do not have ADA can purchase by credit card), and after they purchase the NFT (stored at yoroi), have them send their name/address and name to become owners of LLC DAO.

Utilities for owners of LLC DAO rights NFT

Participation and viewing rights to FJTW DAO's Discord-only channel

The right to receive reward tokens for their contributions to the FJTW DAO.

Voting rights to decide which projects to undertake and how to allocate the budget

Vote of confidence for the transfer of funds raised

Vote of confidence of the executive members

Voting rights for changes in the design of the reward tokens.

Clality is used for voting.

No distribution of earnings or assets in excess of the amount of the capital contribution is allowed as a utility of the employee rights NFT.

Reward Token Design

1,000,000,000,000,000 issued

Reward tokens will be airdropped when the following contribution activities are performed, and the reward tokens will be used to receive services related to the project to be performed.

(owners of LLC DAO who are not executive employees may not invite others to ownership NFTs.)

Participation in voting

Specific activities related to the business to be conducted (specific methods of granting will be discussed in the future).

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

Impact will be measured by the number of people who become DAO members, the number of people who attend events, and the amount of reward tokens airdropped and circulated by DAO.

Initially, 20,000 users will use Cardano's Dapps, and eventually 1 million users will use Cardano's Dapps, up to a doubling of the number of users, given that Yorio has about 1 million holders.

Since one of the main objectives of this project is to have each person experience DAO and Dapps use, it is assumed that those who experience DAO and Dapps use and spread DAO and Dapps further, so the impact will be immeasurable.

[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?

With regard to this project, DAO building and community management is the most important part of the project, and the project member is the co-founder and the community manager of RULEMAKERS DAO, which has nearly 1,000 members, and the project members are advisors to several other DAOs, the project members have a proven track record and ability to build DAOs and community manage DAOs and is assured of their abilities.

As mentioned above, in addition, this LLC DAO requires a high level of knowledge of Japanese law as a basis for drafting articles of incorporation and regulations, designing tokens, etc. However, the members of this project, who are attorneys, are experts in this field, the member of this project, who is lawyer, specialize in and have experience in this practice, so he can handle this without any problems.

Project member attorneys, whose credibility and trustworthiness are legally guaranteed by their qualifications and lawyer autonomy, manage the money.

Strategy

The largest "DAO" in Japan is MZDAO (MZDAO Community), which had a peak participation of 200,000 members despite requiring a monthly fee of 500 yen. This time, FJTWDAO offers permanent participation for a one-time coin payment and allows participants to acquire ownership of the limited liability company, have decision-making rights, and earn tokens by participating in specific projects. Therefore, it is expected to attract even more participants. Additionally, each member can earn tokens by inviting others and handling onboarding, creating an incentive for token acquisition that accelerates member growth. Furthermore, the DAO's operations and rules have been developed using Japan's legal entity system, guided by members who are currently involved in its establishment, including lawyers and community managers. This design, informed by cutting-edge knowledge and discussions, is shared openly, making it an entry-level DAO for all.

Based on the following calculations, statistics, and rationale, FJTW DAO is expected to achieve 1 million participants in 12 years.

1.Initial number of participants: The number of participants in the first year is set at 10,000 as mentioned above

2.Annual growth rate: The annual growth rate of FJTW DAO is assumed to be 50

Network effects: As the number of participants increases, the value of the DAO increases, attracting more new participants and raising the growth rate. The impact of network effects can be seen in the rapid growth of Bitcoin and SNS platforms (EMB Blogs).

Rapid market growth: The blockchain market is growing rapidly, with an annual growth rate of approximately 50% expected from 2021 to 2026 (Deloitte United States). As the market grows, the use of DAOs is also expected to increase.

Past success stories: The rapid growth of the DeFi market (2000% growth from 2019 to 2021) and the success of existing DAOs (e.g., MZDAO with 200,000 participants) support the potential growth of FJTWDAO (Imaginovation).

3.Use of logistic growth model:

  \( N(t) = \frac{K}{1 + \left(\frac{K - N_0}{N_0}\right) e^{-rt}} \)

4.Parameter settings:

• \( K \) (maximum adoption rate): 1,604,400 people (30% of DAO participants in Japan)
• \( N_0 \) (initial number of participants): 10,000 people
• \( r \) (growth rate): 0.5 (50%)
• \( t \) (years): 12 years

5.Calculation:

  \( N(12) = \frac{1,604,400}{1 + \left(\frac{1,604,400 - 10,000}{10,000}\right) e^{-0.5 \times 12}} \)

  \( N(12) = \frac{1,604,400}{1 + 159.44 \times e^{-6}} \)

  \( N(12) = \frac{1,604,400}{1 + 159.44 \times 0.0025} \)

  \( N(12) = \frac{1,604,400}{1 + 0.3986} \)

  \( N(12) = \frac{1,604,400}{1.3986} \)

  \( N(12) \approx 1,147,274 \)

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

August 2024.

Prepare the necessary articles of incorporation and regulations for forming a limited liability company-type DAO to raise funds and recruit members.

A: Articles of incorporation and regulations required for LLC DAOs in Japan

B: Design to work and comply with Japanese law?

C: Submission of prepared Articles of Incorporation and Rules and Regulations

July 2024.

The following event will be held in Kagawa, which is under consideration for becoming a web3 special zone and is the constituency of the first Digital Minister Hirai, head of the Digital Society Promotion Headquarters, and to which the first Digital Minister Hirai has been invited.

Touching the Future of Web3 and DAO

● Objective

Get a real feel for web3

Generate collaboration

Get people to participate in DAO

Targets

People who want to create a new business or community

People who want to promote DX

People who are interested in web3 and DAO

People related to DAO and web3 who want to find collaborators and friends

People related to the Setouchi International Art Festival

Date, time, and place

Takamatsu City, Kagawa Prefecture

Simultaneous online distribution

Contents

1) First greeting: 5 min.

2) Use cases of Web3: 10 min.

Blockchain, crypto assets, Dapps, DID/VC, DAO

3) What is a DAO, limited liability company-type DAO, NPO-type DAO: 15 minutes

4) Introduction of DAO use cases (pitch): 3 minutes x 5

→Introduction of initiatives in Kagawa

5) Introduction of DID/VC use cases (pitch): 3 minutes x 5

→Introduction of initiatives in Kagawa

6)Panel discussion on the potential of DAOs: 30 min.

7) Workshop: 30 - 40 minutes

What can we do use web3 technology?

Can we do this with this project?

8) Presentation/participation/voting for FJTW DAO: 20 min.

9)End: 5 minutes

Reception from 5:00 p.m.

Points

・On participating in the event, have participants experience DID/VC using Cardano's Dapps.

・Ask participants to register a Yorio wallet and give them 1 ADA each. Participants will be asked to use their ADA to purchase NFTs issued by FJTW DAO using NMKR to become owners of FJTW DAO. Then, using Clarity, have the owners vote to select the first project they will start.

A: Event attendees

B: More than 50 people

C: Present the number of participants to the DAO discord

July - October 2024.

The community manager will manage the DAO as a DAO, asking owners to make contributions so that the projects selected by the vote will be promoted and collaboration will occur.

At the same time, consider designing the granting of reward tokens.

A: Contributing members, reward token design

B: 100 or more members, possibility to work as reward token design

C: Presentation of the number of active users in the DAO discord, submission of a description of the reward token design

October - December 2024

Gather additional employees while also holding events to recruit members.

A: Members to participate, number of events held

B: 200+ members, 3 events

C: Number of participants to DAO discord, presentation of event page

January - February 2025

As a culmination of the six-month period, an event for several hundred people will be held in Shikoku regarding the selected project.

A: Event held, event attendees / owners

B: More than 200 people / 5000 owners

C: Presentation of event report

Create a six-month Project Close-out Report and Video.

After that, gather 10,000 owners over the course of one year, and for each selected project A vote of confidence by employees will also be held to determine the specific details.

(1) Festival: The funds raised will be used to cover the operating costs of the venue, and employees will receive reward tokens for all other activities as their contribution. In addition, employees will hold events and open stalls.

(2) Land and Building: Using the funds raised, the rights to the land and building will be acquired, and employees will do what is necessary to utilize the land and building, receiving reward tokens for their contribution. Furthermore, the land and buildings will be used by employees.

(iii) Agricultural land: Using the funds raised, the company will acquire the rights to agricultural land, and employees will receive reward tokens for their contribution to the utilization of the land. Furthermore, employees can use the farmland and acquire the harvested products.

*In accordance with the Agricultural Land Law, limited liability companies cannot, in principle, acquire ownership rights to farmland, and we will lobby for a change in the law to allow them to do so.

After the first year, the company will promote each project while allocating the collected funds to the three projects.

Finally, the company will acquire 1 million employees and apply for Guinness World Records.

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

1.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

2.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

3.Miyashita Daisuke

TicketMe CEO

Daisuke Miyashita entered the School of Political Science and Economics at Waseda University and simultaneously launched an e-commerce site specializing in apparel. After selling this business, he engaged in research work at East Ventures, an independent venture capital firm. In June 2022, he founded TicketMe Inc. and became its CEO.

TicketMe

Let's talk about Japan's first marketplace app, "TicketMe," operated by TicketMe Inc. This platform allows anyone to easily buy and sell various "items" and "rights."

Here are some features of TicketMe:

1. Secondary Distribution-Focused Marketplace App: At TicketMe, tickets linked to items or event participation can be distributed secondarily before the product is received or event participation is confirmed. Fair transactions are possible, and there are no fees required on typical e-commerce sites.
2. 5% Return to Primary Sellers: When items are redistributed within TicketMe's marketplace, 5% of the face value is returned to the primary seller, allowing them to earn more.
3. Seamless Transactions through Digitization: All buying and selling of items and rights on TicketMe are conducted using digital 'tickets' online, with no actual product shipping. Proceeds from sales are deposited after the items are received or rights are confirmed.
4. Wide Range of Uses: Currently, two types of 'tickets' can be listed: event tickets and merchandise exchange tickets. In the future, the platform plans to expand to various uses such as beneficiary rights of real estate, people's time, airline tickets, carbon credit STOs, and more.
5. Collaboration with External Marketplaces: TicketMe collaborates with many marketplaces, and the listed 'tickets' can be bought and sold on those marketplaces as well.

Use its own community/connections to advertise, etc.

LinkedIn: Daisuke Miyashita's LinkedIn

4.Hiroaki Hatanaka / Representative Director and CEO of Aruyoumu

Background:

Hiroaki Hatanaka experienced the hustle and bustle of life in Tokyo and Shibuya during his middle and high school years, which led him to aspire to move to Sapporo upon entering Hokkaido University. However, he had to abandon this plan due to strong opposition from those around him.

In 2017, while studying at Kyoto University's Faculty of Integrated Human Studies, Hatanaka came across an article in the Nikkei on the revised Payment Services Act, which introduced him to Bitcoin. Using the 300,000 yen his father had given him for driving school, he began engaging in cryptocurrency arbitrage trading.

Since then, he has been deeply immersed in the world of blockchain and cryptocurrencies. With the funds earned from arbitrage trading, he finally fulfilled his dream of moving to Sapporo in March 2020.

Professional Journey:

• In November 2020, Hatanaka founded Aruyoumu Inc.
• In September 2021, he joined JPYC Inc.

About Aruyoumu Inc.:

"Aruyoumu" is an Arabic word meaning "today." Under this name, Aruyoumu Inc. is dedicated to using the power of creators and cutting-edge technology to transform municipalities and regions into thriving and profitable places. Founded in 2020, the company launched a project for hometown tax NFTs, aiming to showcase the charms of hometowns to the world through the power of creators and to innovate new digital tourism industries. According to some sources, Aruyoumu is also involved in the manufacture and sale of character goods.

Use its own community/connections to advertise, etc.

5.Yuta

Tax accountant and CPA specializing in crypto assets and web3

Role in this proposal

・Advice on accounting and taxation matters for DAOs

・On-boarding of the cardano Japanese community to the DAO itself or to its events

5.NMKR

Home (nmkr.io)

Tool provider to sell NFTs and raise funds

Already contacted and responded to

6.Clarity

Tool providers for token granting, voting and treasury management

Already contacted and supported

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

Personnel expenses

Community Manager: 5,000 ADA per month x 6 months = 30,000 ADA

Designer: 2,000 ADA per month x 6 months = 12,000 ADA

Other Legal & Accounting: 2,000ADA/month x 6 months = 12,000ADA

Event organizer: 2,500ADA/month x 6 months = 15,000ADA

Marketing and public relations expenses

Website development: 1,000ADA

SNS marketing: 1,000ADA x 6 months = 6,000ADA

PR content production: 4,000ADA

Infrastructure Costs

Web hosting: 500ADA per month x 6 months = 3,000ADA

Domain name acquisition: 400ADA

Cloud service: 1,000ADA per month x 6 months = 6,000ADA

Software License

Project management tool: 500ADA per month x 6 months = 3,000ADA

Reserves

Approx. 8% of total budget: 8,000ADA

Actual costs of the event will be covered by funds raised

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

Labor costs are based on an average hourly wage of about 2,000 yen for an employee in Japan, which is a reasonable cost.

Licensing fees are reasonable for general use.

Marketing and advertising costs are considerably lower than general costs, as they are handled manually by DAO members.

Also, events are conducted with funds raised by DAOs, so there are no costs in Cardano.

Cost-effectiveness is significant because of the availability of human resources and the fact that participants increase the number of people involved in Cardano