JAPANGO: Use DID&VC to build a Japan Lover DAO‐JAPANGO to help 25 million travelers in Japan

[GENERAL] Name and surname of main applicant

Chris Dai

[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)

10

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

No

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

Provide platform and tools for creating DID in DAO to create social conscious project communities that link travelers and local residents. Help local services find good customers to increase income.

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

No

[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.”

No dependencies

[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

on-chain part can be open source

[METADATA] Horizons

Tourism

[SOLUTION] Please describe your proposed solution

Solutionの日本語はこちら

[Problem]

While advancing Japan's tourism industry, the issue of over tourism has emerged. This problem primarily manifests in the following ways:

Based on the data from Japan National Tourism Organization, in the past 20 years, the inbound travelers has increased rapidly. Although Japan's tourism industry suffered a huge impact during the COVID-19, after the COVID-19 ended, the number of travelers to Japan rebounded significantly. In 2023, the number of travelers to Japan will reach 25 million, and it has the trend to continue to grow. The total consumption by foreign travelers visiting Japan in the calendar year 2023 reached a record high of 5.2923 trillion yen (approximately 35.46 billion USD), an increase of 9.9% compared to 2019. In 2024, it will reach an all-time high. However, due to the problems like language barriers, cultural differences, and lack of understanding between each other. The stakeholders have difficulty and face challenges to benefit from the advancing Japan’s tourism industry. 

A significant challenge for travelers to Japan is the limited access to accommodations, food, and services that locals enjoy. This issue stems partly from language barriers, as many local Japanese do not speak the travelers' language. Additionally, cultural misunderstandings on the part of travelers and the absence of a community that bridges the gap between locals and visitors further exacerbate the problem. This disconnect prevents travelers from fully experiencing authentic Japanese life and hinders meaningful interactions between locals and visitors, resulting in a less immersive and enriched travel experience.

For service providers, despite the abundance of attractive regions throughout Japan, the concentration of tourists in a few select areas creates challenges. Providers in other regions struggle to attract customers, and there is a tendency to standardize and simplify services when catering to anonymous tourists, which can compromise service quality. Members of JAPANGO can obtain their own unique identity through Decentralized ID （DID）. Through this identity, service providers can provide more differentiated services, which also allows JAPANGO members to experience more authentic Japanese travel services.

For local residents, particularly those living in tourist destinations, the influx of inbound tourists benefits mainly the businesses, while local residents see little to no improvement in their quality of life. This disconnect highlights a significant issue where the economic benefits of tourism are not adequately distributed to the local community.

[Prototype]

Here is an overview of the current prototype.

JAPANGO DAO, composed of Japanese travel enthusiasts, allows members to benefit from more favorable terms through peer-to-peer business transactions. Additionally, it facilitates the discovery and utilization of a wider range of travel resources across Japan. 

In more detail, before traveling to Japan, travelers can become members of JAPANGO and book services they are interested in through the platform. JAPANGO members will be able to enjoy high-quality travel services in Japan at very affordable prices. After the trip, they can share their travel experiences in the community, participate in community building, and earn rewards.For service providers, they can quickly match suitable guests through the user's DID and recommend their services to these guests. This will greatly improve service utilization and reduce customer acquisition costs.

Travelers can use JAPANGO by following explanations below, they can visit JAPANGO's homepage before their trip and register to become a member of JAPANGO. After becoming a member, they will receive their own DID (Decentralized Identifier). Then, they can enjoy highly cost-effective services. As their travel experience deepens, the DID will reflect the traveler's experience and preferences in Japan, providing a reference for offering more tailored services in the future.

• 

Value of prototypes:

JAPANGO brings three values to the participants.

First, it improves the experience of the travelers.

JAPANGO aims to become a DAO that shares Japanese travel experiences and uncovers new travel resources in Japan. JAPANGO will work collaboratively to provide participants with an enhanced travel experience. Additionally, members of JAPANGO will have the opportunity to participate directly in community development through voting, which will directly improve the overall user experience.

Second, travel service providers will benefit from high-quality guests and increased revenue. 

For JAPANGO's partner hotels, member utilization will significantly reduce vacancy rates and increase revenue for the hotels. Besides, by selecting experienced Japanese members within the DAO, businesses can attract customers directly without relying on intermediaries such as OTAs (Online Travel Agencies). This approach not only enables a more direct and personalized connection with travelers but also facilitates the acquisition of repeat customers, fostering long-term relationships and loyalty within the community. In the future, JAPANGO will expand its services beyond accommodation to include a variety of experiences. Some lesser-known, high-quality local experiences will be uncovered by community members and formally integrated into JAPANGO’s offerings through a voting process. This will enable more efficient utilization of these tourism resources.

Third, tourism resources across different regions of Japan will be discovered and fully utilized.

For local residents, they can use the tokens they earn to receive benefits from local services. Additionally, since they have the opportunity to conduct business and earn income locally, it can help reduce the outflow of talent to large metropolitan areas. This fosters local economic growth and creates more sustainable opportunities for residents within their communities.

By utilizing the LLC DAO structure, JAPANGO members can book accommodations and other travel services in Japan without going through travel intermediaries, greatly reducing fees associated with intermediaries. At the same time, the LLC DAO structure organizes members as a limited liability company, allowing the DAO to directly collaborate with service providers, such as hotels. These service providers will offer services to DAO members at more favorable prices. Additionally, JAPANGO members can participate in decision-making regarding the direction of community development, propose services they are interested in, and after passing through community votes, have these services added to JAPANGO’s offerings. This allows members to highly customize their travel experiences.

DID enables service providers to quickly understand their customers and offer more personalized services, allowing them to acquire users at a very low cost. For JAPANGO members, their preferences will be effectively reflected through DID, giving them more opportunities to experience unique and in-depth travel experiences in Japan.

Our approach

In 2024, Japanese law officially recognized the legality of LLC DAOs, making innovative organizational and operational models like JAPANGO both possible and legitimate. The JAPANGO project leverages an LLC DAO to own and distribute unique Japanese travel services. Since an LLC DAO can operate as a corporate entity, JAPANGO is well-positioned to attract numerous corporate partners. Travelers can become members of JAPANGO, enjoy member benefits.

Besides, the JAPANGO members will get an ID based on the DID and Verifiable Credentials (VC). This will indicate their experience of traveling to Japan and allow service providers to quickly identify their customer types and provide corresponding differentiated services.

Engagement

JAPANGO’s DAO members, utilizing DIDs, actively participate in project management and service provision. This direct involvement of users, service providers, and local communities fosters trust, enhances cultural exchange, and ensures the project’s sustainable operation and growth.

Specificity

This project is the first to use an LLC DAO model to revitalize various travel resources and offer high-quality travel experiences to those who love traveling in Japan. It aims to provide significant benefits to hotels, experience providers, and travelers alike, creating a mutually beneficial ecosystem for all participants. The travelers will get a DID and can enjoy more differentiated and authentic Japan travel services based on their DID.

Importance to Cardano

If this project succeeds, Cardano's influence will expand into multiple sectors of the Japanese travel industry, with the most prominent example being the traditional inn (ryokan) industry, representing a fusion of Web 3.0 and traditional hospitality. Additionally, other Japanese tourism service providers, such as ski resorts and diving operators, will also become new users of the Cardano platform. Furthermore, local governments in Japan, recognizing the positive regional revitalization brought about by JAPANGO, are expected to participate in Cardano’s development and contribute to its growth.

By rediscovering and integrating Japan's tourism resources through the Cardano platform, a new paradigm for tourism will emerge—one that could have a transformative impact on the entire Japanese tourism industry. This new model is projected to bring potentially 10 million new users to the Cardano platform.

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

Impactの日本語はこちら

[Setting KPIs]

To assess progress and achievements as an MVP, following KPIs are set as short-term targets.

1. Membership holder：Measures the rate of membership purchases, indicating the demand for the DAO-based travel services. 1,000
2. Number of the community members: 5,000
3. Number of Partners： Assesses the number of business partnerships established, showing the DAO’s network expansion. 10
4. Impact on the Local Economy： Evaluates the economic benefits brought to the local community, such as increased revenue, job creation, and reduced outflow of local talent. The immediate economic benefit should surpass 100,000,000 Yen.

These KPIs are key indicators for measuring the specific impact of the project and are adjusted and optimized through regular reviews.

[Expected Impacts]

We estimate that the long term benefits that JAPANGO can provide in the Long-Term in collaboration with Cardano are as follows

• Number of JAPANGO members: 1.5 million (calculated from per capita KPIs)
• Economic impact: $ 40 billion (calculated from data).
• Number of partners: 100,000 units
• Number of community members: 4.5 million

In addition, the following impact can be expected.

• Discovery and Integration of Local Tourism Resources:The project will consolidate various tourism resources, including accommodations, to offer more diverse and high-quality travel experiences. By uncovering local attractions and services, it enhances the overall travel offerings in Japan.
• Deepening Tourists' Understanding of Japanese Culture:By promoting local community culture, the project will help deepen tourists' understanding of Japanese traditions and customs. This not only addresses the issue of overtourism but also provides tourists with a more immersive and meaningful travel experience.
• Boosting the Local Economy:Through the discovery and sustainable utilization of local tourism resources, the project can bring additional income to local residents. This will contribute to the revitalization of regional economies, promoting long-term local development.

These effects aim to demonstrate the potential of the Cardano blockchain through the success of the project and lead to its wider adoption.

[Building a cooperation structure]

The JAPANGO project will deepen its engagement with the local community and other DAOs through the following cooperation structures

• Establishing Partnerships with Travel Service Providers, Local Residents, and Municipal Officials. Regular workshops and open discussions will be held to actively involve local residents, municipal officials, and travel service providers in the planning and execution of the project. This will help to integrate tourism resources and deliver an improved travel experience, fostering community-based sustainable development.
• Technical support and education: we will provide educational programmes to engage local participants with Cardano's technology and provide enhanced technical support. This will reduce hurdles to the use of blockchain technology and promote the technology within the region.
• Collaboration with other Catalyst projects: we will collaborate with other Cardano community projects to share solutions to common challenges and mobilize resources to promote best practice globally.

Through these cooperation structures, the JAPANGO project will work closely with participants and DAOs to support the development of Japan's Tourism Industry as a whole and demonstrate the practical benefits of the Cardano blockchain.

[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?

ANGO is the operator of project “JAPANGO”, is uniquely positioned to deliver this project with high trust and accountability. Our capability is demonstrated by:

• Legal expertise in Japan's newly recognized LLC DAOs
• Proven track record with blockchain projects like UniCask and Digitalme
• Extensive experience in blockchain development, including Ethereum-based services
• Established partnerships with travel providers, local communities, and officials
• Clear project milestones and commitment to transparent reporting
• Recognition as an official tool by the Japan DAO Association

Our market position, technical expertise, and strong partnerships ensure successful delivery within the Cardano ecosystem.

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

Milestoneの日本語はこちら

[A: Milestone outputs]

Milestone 1 includes the following key activities. Milestone 1 focuses on “How will Cardano change the travel industry in Japan”.

• Comprehensive Market Research:This will include results obtained through data analysis and user interviews.
• Explore the Tool sets and Dapps created by Cardano ecosystem that can be used to create a decentralized platform.

[B: Acceptance criteria]

Finalize the research papers, publish them on Google Docs and share them with the Catalyst Challenge reviewers.

[C: Evidence of milestone completion]

Reviewers will have access to the market and technical research reports and will be able to review the following

• Marketing research
• Technical aspects of the project

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Estimated timeline for delivery: 2nd month

Cost: 22,290 ADA

Completion rate: 15%

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[A: Milestone outputs]

Milestone 2 will include the following key activities

• Brainstorming and ideation based on the research paper
• Back-end development
• Blockchain development
• Demonstration screenshots or videos

[B: Acceptance criteria]

Catalyst Challenge reviewers have access to an explanatory demo presentation video.

[C: Evidence of milestone completion]

Explanatory demo video.

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Estimated delivery date: 5th month.

Cost: 52,000 ADA

Completion rate: 50%.

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[A: Milestone outputs]

Milestone 3 includes the following key activities

• Unit testing
• Manual testing
• Bug fixing
• Documentation

[B: Acceptance criteria]

Reviewers have access to documentations of the tests.

Reviewers have access to photos and sales listings.

Community members can access public session reports in a Google spreadsheet.

[C: Evidence of milestone completion]

Reviewers have access to the Youtube instructional video.

Reviewers have access to photos and sales lists.

Community members have access to public session reports.

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Estimated delivery date: 6th month.

Cost: 22,200 ADA

Completion rate: 65%.

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[A: Milestone outputs]

Milestone 4 will mainly involve the following activities

• Brainstorming and ideation of the design
• Finalization of UI/UX design 
• Completion of the design
• Front-end development

[B: Acceptance criteria]

A walkthrough of these features will be filmed and the video will be posted for community members to access.

Reviewers will have access to photos and screenshots of the designs.

[C: Evidence of milestone completion]

Community members can review designs screenshot on presentation or walkthrough videos.

Reviewers can access photos and video.

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Timeline for delivery: 7th month

Cost: 34,860 ADA

Completion rate: 85%

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[A: Milestone outputs]

The final milestone includes the following key activities

• Bug fixes
• Preparation of the project closing report
• These steps result in two deliverables: a closing report and a closing video.

[B: Acceptance criteria]

The following items are made available to the community for review

• Project closing report
• End-of-project video.

[C: Evidence of milestone completion]

Community members can access and review the project completion report.

An end-of-project video is made available on Youtube for community members to view.

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Estimated timeline for delivery: 10th month.

Cost: 17,250 ADA

Completion rate: 100%

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Total 148,600 ADA

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

[Chris DAI]

Blockchain evangelist and co-founder and CEO of Japanese blockchain companies. Pioneered redeemable physical asset NFTs and successfully completed several NFTs sales. Focuses on inventing decentralized businesses in the non-financial sector utilizing blockchain technology. Deeply attracted to the decentralized model and its business, social and philosophical aspects. Advisor to Japan Blockchain Association, Committee member of the Investigation of Blockchain Utilization of Authentication Information of Japanese Positioning Satellites, and Research Institute of Economy, Trade, and Industry Blockchain research team member. 

Co-authored (2019) Next Blockchain: Ecosystem for Next Generation Industries. Nikkei Business Publications and (2020). Blockchain and Crypt Currency. Springer.

[Yi Liu]

CTO of Recika. Seasoned blockchain product manager. Lead system development for UniCask and ANGO. 

Possesses over 10 years of experience in system development at a major securities company, with deep knowledge in software engineering and project management. Completed a Master's degree in Engineering at Nagoya University.

[Kento Honda]

Joined RECIKA at the end of 2021 and became Business manager of UniCask in 2022.

He was responsible for the planning, design, sales and marketing of the world's first small batch whisky cask NFT.

As a result, the $40 million barrel sold out in nine minutes. He then sold the NFT in collaboration with seven IPs, and was also in charge of planning, coordination with various parties and marketing here.

In addition, as a POC for Livesola (a service that visualizes fan behavior and contributions in the form of NFTs and tokens), we organized a three-hour live broadcast using a TV station's studio.

He has also participated in other consulting teams for major automotive companies, and has experience in coordinating projects mainly using NFTs with a wide variety of stakeholders.

He has also been involved in ANGO since 2023. Currently, he is working with engineers on the development required to raise funds using NFTs in a limited liability company type DAO from new property development.

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

[Milestone 1]

• Estimated timeline for delivery: 2nd month
• Cost: 22,290 ADA
• Completion rate: 15%

[Milestone 2]

• Estimated delivery date: 5th month.
• Cost: 52,000 ADA
• Completion rate: 50%.

[Milestone 3]

• Estimated delivery date: 6th month.
• Cost: 22,200 ADA
• Completion rate: 65%.

[Milestone 4]

• Timeline for delivery: 7th month
• Cost: 34,860 ADA
• Completion rate: 85%

[Milestone 5（final）]

• Estimated timeline for delivery: 10th month.
• Cost: 17,250 ADA
• Completion rate: 100%

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

JAPANGO's vision is to become a decentralized platform that integrates tourism resources across Japan, providing travelers with richer and higher-quality travel experiences. As Japan's tourism industry continues to grow, JAPANGO is expected to experience significant expansion. Although the project involves costs, these costs are well justified and cost-effective for the following reasons.

[Increase in Users]

JAPANGO aims to achieve its mid-term goal of having one out of every three travelers to Japan as a JAPANGO member. With this goal in mind, JAPANGO has the potential to become the largest decentralized platform for integrating and sharing tourism resources in Japan. Assuming each user completes at least one transaction, this could generate potentially $40 billion in value and bring 4.5 million new users to the Cardano platform.

[A New Business Paradigm Based on the Cardano Platform]

While JAPANGO is focused on transforming the tourism industry by using a Web 3.0 approach to reshape the traditional tourism business model, the commercial paradigm created by JAPANGO could influence many other intermediary-based industries. Uncovering Cardano's potential to create decentralized platforms will represent another significant contribution of the Cardano ecosystem.

[Other benefits can be expected to include.]

• Driving technological innovation: a property management system powered by the Cardano blockchain will significantly increase transparency and efficiency, differentiating it from other blockchain platforms. This will trigger the adoption of Cardano technology in more industries.
• Building a sustainable local economy:By discovering, integrating, and utilizing local travel resources, JAPANGO can effectively stimulate regional economic development. This approach will also attract a broader range of users to the Cardano platform, further enriching its ecosystem.
• Expanding the ecosystem: by concretising property management as a Cardano use scenario and attracting new users and developers, the value and reach of the Cardano network is expanded.

In light of the above, the invested funds are expected to generate a high return on the expansion of the Cardano ecosystem and the funds are expected to be used effectively.