DAO farming launches in Japan to boost farmer income and natural capital

The “Planetary Health Rice Paddy DAO” has launched in Kofu, Tottori Prefecture, using a decentralised autonomous organisation (DAO) model for rice farming. The project, a collaboration between Tenrai Inc., Kofu Town, and the Miyachi Agricultural Cooperative, aims to revitalise local agriculture, increase farmer incomes, and regenerate the environment through community participation.

It seeks to address major challenges in Japan’s agricultural sector, including fluctuating rice prices and a declining farming population. Rather than relying on price competition, the project focuses on enhancing the overall value of rice production and farming.

The DAO model allows members to engage directly in farming operations. An initial group of 20 individuals have joined the project, including doctors, entrepreneurs and soil experts. These members support it by purchasing rice in advance from a 2,500-square-metre test paddy, which helps provide stable income to local farmers. In return, they receive non-fungible tokens (NFTs) as proof of membership and “nichtone” (NT) reward tokens for contributions such as participating in planting activities.

The inaugural rice planting event was held on 24 May. It was attended by DAO members, local officials, and representatives from the Tottori Prefectural Government. A congratulatory message from Akazawa Ryosei, Japan’s Minister in charge of Economic Revitalisation, was delivered at the event. Following the ceremony, one DAO member began a continuous stay in Kofu to support the agricultural cooperative, highlighting the project’s potential to increase the relationship population and attract new individuals to farming.

Beyond rice cultivation, the project also seeks to maximise the paddy’s value as natural capital. Plans include upcycling currently unused resources such as rice husks and weeds. The project will assess the health benefits of farm work and evaluate biodiversity gains from reducing the use of pesticides and chemical fertilisers.

A central goal is to implement the concept of “Planetary Health,” which recognises the interconnection between human and planetary well-being. The project is positioned as the first step toward building a bigger intiative of “Planetary Health DAO.” It also aims to pilot a new economic evaluation model known as “Gross Natural Product (GNP),” designed to recognise and quantify the value of natural capital and ecosystem services, often ignored by traditional Gross Domestic Product (GDP) measures. The ultimate vision is to construct a regenerative economic zone rooted in natural capital.

The initiative is being rolled out in phases. The current phase, which began in May, focuses on DAO management and soil analysis. From June to September, the team will refine the token and incentive system. Harvesting and the validation of upcycling efforts are scheduled from October to December, alongside planning for future expansion.