Japan's Digital Ministry is to create a decentralized autonomous organization (DAO) to further its exploration of Web3 technology.

The DAO will help the government develop an understanding of what such organizations can achieve and identify their limitations, according to minutes of a ministry meeting. The ministry also wants to look at issues such as the legal position of governance tokens that are used for voting.

A DAO is a blockchain-based form of organization governed by holders of its native crypto token, who vote on matters related to the running of the organization. They are considered by some to be a ground-breaking use case for blockchain technology, representing an innovative approach to businesses management.

Japan has been exploring means of integrating Web3 technology into its government and economy. Prime Minister Fumio Kishida recently established a Web3 policy office under the Ministry of Economy, Trade and Industry (METI) focused on creating policies to enable the expansion of blockchain.

Read more: Bloomberg Beta Leads $6.2M Funding for DAO Framework Origami