Nantang DAO Chronicles (Part One)

was born

The democratic gene of Nantang

In 2025, on the wish list of the Ethereum Foundation's academic grant program, the topic "How DAO tools empower cooperatives" was proposed for the first time as an academic subject. This represents a new idea of how Web3 technology impacts the real world, as well as a challenge facing everyone. While researchers around the world are gearing up to tackle this issue, in a "regular" village in China, a grassroots team composed of young people and villagers has already begun to solve the problem— in August 2024, Nantang DAO, a decentralized autonomous organization dedicated to rural development, was officially established. Unlike the vast majority of DAOs in the world, all members of Nantang DAO moved into the village and live on-site, creating a competitive dynamic with the village's original agricultural cooperative.

You might wonder what charm this village has that can attract so many Web3 elements to gather here, and why the first rural DAO was born here? Why has it been jokingly referred to as "the Jerusalem of China's Web3"? In fact, the randomness behind it is inevitable - the democratic genes and cultural accumulation cultivated in this land for thirty years are the deepest answers. From the well-known farmers' rights protection organizations to the first localized practice of the "Robert's Rules of Order", the seeds of democratic governance have long been sown here.

In the 1990s, the central government implemented tax reforms, and in certain areas of Fuyang, layers of burdens were added to farmers, leading to corrupt practices among officials and the entanglement of local thugs in tax collection, making life unbearable for the common people. At that time, Yang Yunbiao (Brother Biao), who had just graduated from Northwest University of Political Science and Law, went to Beijing to file a complaint on behalf of the villagers but faced various criticisms, threats, and even illegal detention. In this context, local villagers believed that only by establishing their own organization could they change the rural situation. Thus, the "Farmers' Rights Protection Association" was born. In 2004, at the initiative of the renowned agricultural expert Wen Tiejun, the village prepared to establish the "Nantang Agricultural Cooperative," marking a gradual shift in the local focus from confrontational rights protection to organizational construction and development—from "crying for rights protection" to "smiling for rural construction." During this period, many constructive cultural, community, and economic activities began to develop, such as the Elderly Culture Festival, mutual assistance in farmers' cooperative funds, and activity centers for the elderly association, women's association, and left-behind children.

As everything gradually returns to calm, a democratic practice innovation from the Nantang Cooperative has once again attracted external attention — in 2008, "Robert's Rules of Order," a classic Western procedural manual, took root for the first time in rural China. The key figure driving this transformation is Yuan Tianpeng, a returnee who personally experienced the rules of order in the student council at the University of Alaska in the United States, and has been dedicated to the localization of these rules since returning to China. By chance, through the introduction of freelance writer Kou Yanding, he became connected with Yang Yunbiao of the Nantang Cooperative and personally came to Nantang. Here, the three of them, through repeated discussions and trial and error with the villagers, finally polished out the "Nantang Thirteen Articles" (also affectionately called the "Radish and Cabbage Rules" by the villagers, with the book "Operable Democracy" vividly and thoroughly recording its birth process) a few months later; this localized innovative practice of the rules of order quickly sparked widespread attention from academia and media both domestically and internationally, becoming the most recognizable cultural symbol of Nantang. Looking back, what is particularly valuable is that it successfully stripped away the elitist color of Western rules of order, transforming it into a truly local and operable democratic practice model. The practice in Nantang proves that the realization of democracy is by no means a castle in the air, nor is it the patent of the elite class, but rather an operable system that can take root at the grassroots level through specific methodologies. This practice provides valuable local experience for grassroots democratic construction in China, demonstrating the strong vitality of democratic systems in rural China.

Establish South Pond DAO

Consciously organizing farmers and discussing matters through the 'carrot and cabbage' rules is undoubtedly a valuable cultural gene of Nantang. However, so far, everything that has happened in the Nantang cooperative has not intersected with elements of Web3. When it comes to connecting cooperatives with Web3, one person cannot be overlooked - Liu Bing. In 2011, Liu Bing learned about the democratic practices in Nantang Village by chance on the internet. Curious about the local 'carrot and cabbage' rules, he came to Nantang as a volunteer. At the same time, Matthew Hale, an anthropologist from the United States, also arrived in Nantang to conduct field research on China's new rural construction movement. In this village, connected to the land, they discussed various contemporary topics such as 'the Argentine worker occupation movement, how blockchain technology can promote the emergence of decentralized economic systems, and how to facilitate the development of cooperatives.' In a casual conversation, he recommended Bitcoin to Liu Bing and even offered to give him one Bitcoin (which was priced at around $1 at the time). This experience planted a seed in Liu Bing's mind, and from then on, the wheels of fate began to turn. He started to continuously pay attention to the trends in the virtual currency industry, investing in Bitcoin starting in 2013, and participated in the crowdfunding campaign for Ethereum aimed at global internet users in 2014. After achieving financial freedom, Liu Bing began to give back to Nantang, initially donating Ether directly to the Nantang cooperative and attempting to educate cooperative members about blockchain technology, digital wallets, and other new concepts, but the effects were not ideal.

In the coming period, two major events occurred in the Nantang Cooperative and the domestic Web3 sector. First, the cooperative's mutual funds project faced a crisis, as the funds lent out by the cooperative could not be recovered due to the impact of the COVID-19 pandemic and other factors, leading to a debt quagmire; meanwhile, the largest DAO organization in the Chinese-speaking world, SeeDAO, completed its transformation from a company to a DAO and quickly rose to become the largest DAO community in the country. SeeDAO is a DAO organization full of humanistic care, consistently focusing on the construction and development of rural China. Against this backdrop, through connections made by Liu Bing, Gu Yi, and Wang Debin, in 2023, the cooperative leader Yang Yunbiao had in-depth discussions with SeeDAO founder Bai Yu, and both parties began to realize that the integration of Web3 with rural areas could not only attract more young talent and business resources but also bring new possibilities to the cooperative, which was deeply mired in debt crisis. At this moment, the matter of Nantang's integration with Web3 was indeed ready, just waiting for the right opportunity.

If all goes well, the first to borrow the favorable wind is SeeDAO. In May 2024, several members of SeeDAO went to Nantang for exchanges and inspections. In the Nantang Suoshe, transformed from a rural primary school, Brother Biao sat under the Bodhi tree with the visitors, recounting the struggle of the cooperative for over twenty years. These stories deeply touched the Web3 explorers present, who couldn't help but exclaim that Nantang is simply "the Jerusalem of China's Web3". This interesting meeting ignited the enthusiasm for cooperation from both sides, and SeeDAO subsequently organized multiple visits for members to engage in study exchanges. Almost simultaneously, the cooperative launched its first intern recruitment program, opening its doors to young people with ideals of rural development. Thus, people from the two entirely different fields of rural construction and Web3 began to collide ideas and learn from each other on this fertile land of Nantang. It is in such a vibrant atmosphere that another favorable wind quietly rises—a truly grounded Web3 organization is gradually transforming from a dream into reality...

In June 2024, in Shanghai, a city full of magic, an event titled "Ethereum Public Summer" co-initiated by LXDAO and ETHPanda was being organized with great enthusiasm, and a wonderful encounter spanning over 700 kilometers was about to happen. With the introduction and sponsorship of Liu Bing, partners from the Nan Tang Cooperative in Fuyang, Anhui, stepped into the world of Web3 for the first time. Here, they met LXDAO member Tiao, who was preparing for a keynote speech. Reflecting on that moment, Liu Bing said he could not recall the specifics of the speech, but he distinctly remembered that after Tiao finished, Yang Yunbiao's son excitedly grabbed Liu Bing's hand and shouted, "I like Tiao, I like Tiao! I want to take him back to Nan Tang!" This innocent moment was seen by Liu Bing as a destined fate. In the following days, Liu Bing's deep discussions with LXDAO member Yu Xing gradually shaped the idea of "Web3 settling in Nan Tang." Soon, SeeDAO's Li Zi, along with LXDAO's Yu Xing and Tiao, arrived in Nan Tang as the first batch of villagers to commence this special practice. To attract more Web3 partners to participate, Liu Bing promised to provide each participant coming to Nan Tang with a reward of 0.1ETH (approximately 2000 RMB); later, to create a more sustainable incentive mechanism, Liu Bing decided, based on everyone's suggestions, to establish a dedicated treasury to facilitate communication between Nan Tang and Web3. After resolving the financial issues, organized work began, and on July 28, 2024, the first proposal of the Nan Tang DAO, written by Yu Xing, was released, marking the official operation of this innovative organization aimed at integrating Web3 technology with rural governance; a month later, the establishment proposal of Nan Tang DAO was approved by LXDAO, marking the formal establishment of a deep cooperation relationship between Nan Tang DAO and LXDAO, while also confirming its status as an independent operating entity.

From the grand rhetoric of building "the Jerusalem of China's Web3" to the establishment of DAO organizations centered around Nantang taking root, there have been too many fresh developments in this land in just two short years. The Nantang Cooperative has seen a ray of hope amidst the overshadowing debt crisis, and everything seems to be moving towards a better place.

Assembly and Conflict

Gathering: Nan Tang DAO Seven Elders

"Creating connections while maintaining differences, nurturing hope amidst uncertainty."

With the support of Liu Bing's Web3 incentive program, the news quickly spread across various online DAO communities, and more partners gradually arrived in Nantang, including Bi Bing, who later became a core member of the Nantang DAO. Meanwhile, the cooperative also sent a formal employee (Yang Zhen) as a representative to join the DAO's founding team. Thus, a rural DAO consisting of seven initial members was formed. The "Seven Elders" come from diverse backgrounds; some are practitioners from other DAOs, some are Web3 programmers, some are graduate students, and some are villagers born and raised in Nantang. Looking across China, it was perhaps difficult to find such a grounded DAO team at that time.

Yu Xing is the first resident member of the Nantan DAO. Before meeting Liu Bing, this Web3 practitioner had already conducted in-depth research on innovative cases combining Japanese rural areas with blockchain technology. From being obsessed with NFTs (non-fungible tokens) when he first entered the industry, to deeply participating in the construction of various decentralized communities, and eventually becoming a builder of LXDAO, his choices have always been intertwined with idealistic sentiments and entrepreneurial passion. Before officially stepping into the field of rural development, Yu Xing keenly captured the "natural compatibility in tone" that exists between DAO organizations and traditional villages. In his view, compared to the "winner-takes-all" corporate structure in urban commercial society, traditional villages, based on clan networks and public opinion supervision, form a multi-party game mechanism that inherently possesses bottom-up governance characteristics—this quality resonates wonderfully with the distributed decision-making model pursued by DAOs. Furthermore, DAOs are committed to creating more equitable ownership relationships, meaning that co-creators participate in the ownership of the results and value distribution process, which is also reflected in the design of rural agricultural cooperatives, showcasing a similar thought—this is a deep tacit understanding at the level of institutional design. Speaking of Nantan,