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Kokudaka Project: Where Rice Meets Blockchain in Japan

A conversation with co-founders of a new community economy project called Kokudaka.

In Japan’s Edo period, rice wasn’t just food—it was currency. Social status and wealth were measured in koku, a unit based on how much rice you could produce or possess. Samurai were paid in rice. A daimyo with one million koku was considered incredibly powerful.

This historical relationship between rice and value sparked a bold idea in the minds of Yabe-san and Nagahashi san:

What if rice could become currency again—this time, powered by blockchain?

Their answer: Kokudaka Project, a local economy initiative launched in 2023 in Nishi-Aizu, a rural town in Fukushima Prefecture.

“Why has rice lost so much of its significance?” Yabe and Nagahashi -san often asked themselves.
“We thought rice and blockchain would be a good match. Rice was once the foundation of the economy. Now, we want to use it to build a new kind of exchange.”

Location in the map of Nishi Aizu. Photo Credit: Kokudaka Project

But this isn’t just a Web3 experiment—it’s a deeply personal mission. Yabe-san is the 19th generation of his family to live in Nishi-Aizu. His ancestors settled there around 360 years ago, and he still lives in a traditional home over a century old.

“People say a 100-year-old house is old,” he laughed. “For me, it’s just normal.”

Before returning home, Yabe-san built a successful international career in landscape architecture, living in Tokyo, Canada, and Shanghai. But after the 2011 Great East Japan Earthquake, he felt a calling.

“I decided to come back and do whatever I could,” he shared.

What he found was a town in quiet decline—abandoned farms, shrinking population, and few social activities. “If things continued like this, entire rural towns could disappear, he said.”

Nishi Aizu rice paddies, photo by Kyosuke Aotsu

In Japan today, only 14% of land is farmland, with rice paddies making up just over 7%. The country’s food security—and the preservation of its landscapes—relies heavily on aging farmers and declining rural populations.

Enter Kokudaka.

Nagahashi-san, who manages the project on behalf of the town, explained:

“We wanted to reimagine rice not just as a product, but as a symbol of connection and care. Something that could anchor a community economy.”

This is an introduction of Kokudaka Project in Japanese*

The Kokudaka Project was born to address the unique challenges of rice cultivation in mountainous regions like Nishi-Aizu Town. As outlined in the project’s introduction, rice farmers in these areas face three major hurdles:

  1. Market prices are fixed by region, making it hard to differentiate and add value to their rice.

  2. Large-scale farming is difficult due to the terrain.

  3. A shrinking population has led to a serious shortage of agricultural workers.

So, how is Kokudaka using blockchain to address these issues?

Photo Credit: Kokudaka Project Note

1st Challenge: Difficult to Stand Out in the Market

Rice prices are largely determined by production area, limiting pricing flexibility.

Solution: Direct B2C Sales via Mobile App and NFT
By selling rice through a mobile app ordering directly, farmers can bypass traditional intermediaries and connect directly with consumers. This gives them the power to set their own prices and tell their story—turning their rice into something more than just a commodity.

2nd Challenge: Hard to Scale in Mountainous Areas

Terrain makes it difficult to expand operations or increase efficiency. If this would be compare to Hokkaido(northern island of Japan) one of the bigegst prodcuers of rice and agriculture product where the land is flat, the challenge is almost inextisten.

Solution: Shared Risk Through Community Support
Small-scale farming becomes more viable when producers can increase the unit price through direct-to-consumer sales. Additionally, NFT holders help absorb part of the production risk, providing farmers with more stability—even in the face of unpredictable harvests.

3rd Challenge: Labor Shortage Due to Depopulation

Fewer people in the community means fewer hands to help with farming.

Solution: Building a Supportive Farmer-Fan Community
Kokudaka goes beyond selling rice—it creates a community where consumers can become active supporters. Through NFT ownership, people can participate in local events of harvesting rice, assist with promotions, and become part of a growing movement to preserve and revitalize rural life.

Here’s how it works:

STEP 1. First, install the Rice App on Android or iOS. Wallet address will be automatically generated once you login with your Google or Apple Account.(Currently available only in Japan)

STEP 2. Choose how to support: Browse and select a rice board—a digital way to support a specific farmer or rice field. Purchase the NFT (rice pre-order) via credit card within the app.

STEP 3. In the fall or later on, an NFT that can be exchanged for actual rice will be distributed in the app.

STEP 4. Delivery of Your Rice

This is where it gets fun: there's a social ranking system inspired by historical Japan.
You start as a Hyakushō (百姓)—literally “one who does 100 jobs,” reflecting the traditional multitasker role in rural society. As you continue contributing, your status can rise all the way to Daimyō (大名)—the powerful feudal lords of the Edo period.

Photo Taken from Kokudaka Project

“This is about building an ecosystem,” Yabe-san said.
“One that’s self-sustaining and based on direct exchange—no middlemen.

Today, the Kokudaka community has grown to over 600 members, with more than 750 app downloads. In our interview, Yabe-san shared that rice sales have reached approximately $10,000 USD so far. However, building and maintaining the blockchain-based system is costly. To sustain and scale the project, they need to grow the community and increase rice sales—this will also encourage more farmers to join. Currently, only three farmers are participating in the initiative.

NFT holders are invited to visit Nishi-Aizu, join rice harvesting, participate in local festivals, and attend community meetups in Tokyo. Every interaction is rewarded with a commemorative NFT, strengthening the bond between people and the farmers.

Community Events, photo taken from Kokudaka Project
Onigiri Rice Balls made in a community event
Rice Bag from the farmers

Lastly, let’s talk about the design of this project.

“We chose Edo-period fonts, and wordplay like ‘Rice to meet you’ or ‘Ii ine!’ (a pun meaning ‘good rice!’),” Yabe-san said. “It brings the spirit of the Edo townspeople to life. We want this to be fun, stylish, and alive.”

Photo taken from Kokudaka Project

More than just a tech innovation, Kokudaka is a cultural one. It asks: What does it mean to support a place? How can we revive traditions without being bound by them?

“Around 70% of Japan is countryside,” Yabe-san reminds us.
“We have rich resources—agriculture, forestry, fisheries—but without direct support, they’re disappearing.”

Kokudaka is showing us what’s possible when the past, present, and future come together—when something as essential as rice becomes a gateway to reconnection, community, and hope. Follow their journey on Facebook as ancient farming values meet 21st-century tools :D


References


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