The promise of Web3 is intoxicating. Decentralization, empowerment, and a new economic paradigm – it's easy to see why so many believe it can solve the world's problems. What occurs when you try and transplant this digital utopia on to a post socialist countryside of China. In truth, that complicated reality is full of pitfalls. Nantang DAO provides an interesting, and finally cautionary, use case.… it’s just a correction, it’s a reminder that harmful deeply ingrained social and cultural dynamics can’t be overcome by the most innovative technology. Picture that, but trying to run, say, the most contemporary AI model on a Commodore 64. That potential is definitely there, but the infrastructure simply isn’t the right fit for it.

Web3's Disconnect From Rural Realities

Nantang DAO originated in Vietnam’s beautiful Sanxing Village, Anhui Province. Its goal was to use the magic of the decentralized autonomous organization to bring new life to popular yet dormant rural construction projects. Fueled by my academic curiosity, I wanted to help address the economic hardships faced by the Nantang Xingnong Cooperative. This effort integrated new, cutting-edge technology and old community traditions in an unexpected, but perfect way. Key figures like Liu Bing, armed with crypto wealth, envisioned a future where Web3 could empower villagers and unlock new economic opportunities.

This is where the unintended consequences start to roll in. Web3 culture lends itself to individualism and fast technological adoption at all costs. It seems to conflict with the collectivist ethos of the Nantang Xingnong Cooperative. The DAO's emphasis on autonomy and decentralized decision-making, while theoretically sound, created friction with the cooperative's existing hierarchical structure. It's like trying to teach a cat to fetch – you might get lucky, but you're more likely to end up with a lot of frustration.

Our “Newbie Task Program,” created to help new members acclimate, wasn’t enough to close the cultural divide. Increasing the entry threshold for new members helped reinforce that Web3 experience was a must. This decision unfortunately resulted in a digital divide within the village. Long-time members of the cooperative without a deep understanding of blockchain technology were thus further sidelined. The resentment, which grew deep and powerful, ultimately led to the establishment of a competing DAO. They christened it “Nantang不懂DAO,” an ironic and exasperated phrase.

Entry Thresholds: Economic and Cultural

The story of Nantang DAO highlights a critical, and often overlooked, aspect of Web3 adoption: entry thresholds. We’re all used to discussing the technical barriers to entry – having to learn about blockchain, create wallets, work their way through decentralized applications. But the cultural and economic barriers are equally, if not more, daunting.

Think about it. To participate meaningfully in a DAO, you need not only technical skills but the time and resources to learn about the technology, engage in discussions, and contribute to projects. Villagers are struggling to survive every single day. They don’t have the time to invest in understanding the nuances of smart contracts and governance tokens.

Yet the financial incentives promised by Liu Bing – though well-meaning – may have accidentally made this issue worse. The DAO incentivized Web3 knowledge by showering expertise with ETH. This accidentally established a system that privileged those who already had the knowledge and means, while leaving those who didn’t have access cut off. It’s a flagrant example of the rich getting richer, even in the hyper egalitarian land of Web3.

  • Financial Incentives: ETH rewards attracted Web3 participants.
  • Exclusion: Cooperative members lacked Web3 experience.
  • Resentment: Raised entry threshold created resentment.

This raises a fundamental question: is Web3 truly accessible to everyone, or is it destined to become another tool for the already privileged? The answer, I would imagine, is somewhere in between. In particular, Web3 has the potential to fundamentally empower historically marginalized communities. To ensure that happens, we need to understand the barriers to entry and intentionally work to break them down. That includes providing accessible education, fostering inclusive communities, and designing incentive systems that benefit everyone, not just the tech elite.

Decentralization: Means, Not An End

Nantang Doesn’t Understand DAO provides a critical and compelling counterpoint to the loud, optimistic Web3 hype. Their guiding principle is that decentralization is a tool, not the goal itself. This is an important example and reminder of how technology should be human-focused—not the other way around.

The creators of “Nantang Doesn’t Know DAO” understood that Web3, by default, is not the answer to all problems. It’s worth reiterating that it is a tool, and like any powerful tool, it can be justifiably used for good or for ill. Their focus on practical local activities, such as empowering local youth and improving the village's infrastructure, demonstrates a clear understanding of the community's needs and priorities.

This highlights a broader issue with the Web3 space: a tendency to focus on the technology itself, often at the expense of real-world impact. We often get hit over the head with projects that are more impressive technology than applied solution. They fail by addressing problems that don’t exist or overlooking the interests of the very constituents they’re trying to serve.

Nantang DAO’s tale tells of the turbulence of internal disputes and utopian dreams. It holds a cautionary tale for those hoping to use Web3 tools to address real-world challenges. That’s a good thing, because it’s a healthy reminder that tech isn’t a silver bullet and that real change takes more than just lines of code. It requires empathy, understanding, and a willingness to adapt to the unique needs and challenges of each community. The dream of a more decentralized, egalitarian future continues to flame on. Making that dream a reality takes a lot more than wishing and hoping. We should be sensitive to the potential unintended consequences. Don’t ever forget, technology is a tool to enhance humanity, not the reverse. The future isn't just decentralized, it's human.