Nantang DAO Chronicles (Part 1)

Preface

In March 2025, I conducted a field study in Sanhe Village, Fuyang City, Anhui Province (formerly Nantang Village) for a period of one and a half months. During this time, I conducted in-depth interviews with 14 respondents, including core members of the Nantang DAO, local agricultural cooperative staff, and villagers. I also participated in the Nantang DAO novice program, daily affairs of the Nantang Agricultural Cooperative, and the Nantang Unknown DAO translation group. Although the time was short, I had many reflections. I witnessed the local partners' efforts to put the DAO ideals into practice, and I also observed the many challenges faced by pioneers in the field of rural construction DAO. These issues are not only unique but also reflect some common problems in the current development of DAOs.

The "Nantang DAO Chronicles" series is divided into seven parts: Birth, Gathering and Conflict, What is the Goal, Experiments in Incentives and Circulation, Is It Decentralized Enough, Finding a Path, and Writing in the End. These words aim to objectively record the stories of changemakers in this land: the ideal glimmer dedicated to rural construction, the frustrations and perseverance in practice, and the most authentic human connections. If these stories can resonate with more people's hearts or bring some inspiration to rural builders and Web3 explorers, then that is where their value lies.

This article is the first and second part, mainly introducing the background of the South Tang DAO's birth in Nantung Village, the gathering of the "Seven Elders," and the conflicts between the Nantung Cooperative and DAO members.

was born

The democratic genes of Nantang

In the year 2025, on the wish list of the Ethereum Foundation’s academic funding program, the topic "How DAO tools can empower cooperatives" was first proposed as an academic proposition. This is not only a new idea of how Web3 technology impacts the real world, but also a challenge that lies before everyone. As global researchers are gearing up to tackle this issue, coincidentally, in a "normal" village in China, a grassroots group composed of young people and villagers has already begun to solve the problem: in August 2024, the Nantang DAO, a decentralized autonomous organization dedicated to rural construction, was officially established. Unlike the vast majority of DAOs around the world, all members of Nantang DAO have moved into the village and live on the ground, creating a situation where they stand in equal footing with the village's original agricultural cooperative. Of course, this is a joke; the "headquarters" of Nantang DAO is actually located in the cooperative's courtyard, making it a case of you in me, and me in you. However, to say that the concept of decentralized autonomous organizations has been introduced to the fields and farms here is indeed a groundbreaking first in China. This village in Sanhe Town, Yingzhou District, Fuyang City, Anhui Province, with its pioneering ideas from the crypto world, has suddenly gained tremendous attention, attracting experts and scholars from all over the country to discuss "Rural Construction DAO", and even unprecedentedly hosting a Web3 "hackathon"...

You may be curious about what charm this village possesses that attracts so many Web3 elements to gather here. Why was the first rural DAO born here? And why was it once jokingly referred to as "the Jerusalem of China's Web3"? In fact, behind the coincidence lies inevitability: the democratic genes and cultural accumulation nurtured in this land over the past thirty years are the most profound answers. From the renowned farmers' rights protection organization to the first local practice of the "Robert's Rules of Order", the seeds of democratic governance have long been sown here.

Regarding farmers' rights protection organizations, it may seem somewhat untimely to bring it up today. However, at the turn of the century in China, during the era where "farmers are really suffering, rural areas are truly poor, and agriculture is really dangerous", such spontaneously formed organizations in rural areas powerfully promoted the modernization transformation of Chinese agriculture and left a significant mark in the history of rural construction. This village in Anhui is both a participant and a witness to this grand rights protection movement. In the 1990s, with the central government's implementation of tax and fee reforms, certain areas in Fuyang increased the burden on farmers layer by layer, the conduct of officials deteriorated, and local bullies harassed farmers for tax collection, leading to a dire situation for the people. At that time, Yang Yunbiao (Brother Biao), who had just graduated from Northwest University of Political Science and Law, went to Beijing on behalf of the villagers to file a complaint, but he faced various accusations, 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 expert in agriculture, Wen Tiejun, the village prepared to establish the "Nantang Agricultural Cooperative", marking a gradual shift of the local main objectives from confrontational rights protection struggles to organizational construction and development: moving 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 for farmers' cooperative funds, the Elderly Association, the Women's Association, and the Left-Behind Children's Activity Center.

As everything gradually returned to calm, a democratic practice innovation of the Nantang Cooperative attracted external attention again: in 2008, the classic Western procedural rule "Robert's Rules of Order" took root in rural China for the first time. The key figure driving this transformation, Yuan Tianpeng, a returnee who personally experienced the procedural rules at the Student Council of the University of Alaska in the United States, has been dedicated to the localization of procedural rules since returning home. By chance, through the introduction of freelance writer Kou Yanding, he connected with Yang Yunbiao from the Nantang Cooperative and personally came to Nantang. Here, the three of them, through repeated discussions and trial-and-error with the villagers, finally refined the "Nantang Thirteen Rules" (also affectionately called the "Radish and Cabbage Rules" by the villagers; the book "Operable Democracy" vividly and comprehensively records its birth process) after several months; this localized innovative practice of procedural rules quickly attracted widespread attention from academia and media both domestically and internationally, becoming the most recognizable cultural symbol of Nantang. Looking back, it is particularly valuable that it successfully stripped away the elitism inherent in Western procedural rules, transforming it into a set of truly rooted, operable democratic practice paradigms. The practice in Nantang proves that the realization of democracy is by no means an unattainable dream, nor is it the exclusive domain of the elite, but rather a set of operable systems that can take root at the grassroots level through specific methodologies. This practice provides valuable local experience for grassroots democratic construction in China, showcasing the strong vitality of democratic systems in rural China.

Establishing the Nantang DAO

Consciously organizing farmers and discussing matters based on the "carrot and cabbage rules" is undoubtedly a valuable cultural gene of Nantang. However, until now, everything that has happened in the Nantang cooperative has not intersected with elements of Web3. When it comes to connecting the cooperative with Web3, one person cannot be overlooked: Liu Bing. In 2011, Liu Bing accidentally learned about the democratic practices in Nantang Village online. Curious about the local "carrot and cabbage rules," he went to Nantang alone to volunteer. At the same time, American anthropology Ph.D. student Matthew Hale also arrived in Nantang to conduct field research on China’s new rural construction movement. In this village, which is deeply connected to the land, they had imaginative discussions on contemporary topics such as "the Argentine workers' factory occupation movement, how blockchain technology can promote decentralized economic systems, and how to facilitate the development of cooperatives." During a casual chat, he recommended Bitcoin to Liu Bing and even offered to gift him a Bitcoin (which was about $1 at the time). This experience planted a seed in Liu Bing's heart, and from then on, the wheels of fate began to turn. He started to follow the trends in the virtual currency industry and began investing in Bitcoin in 2013. In 2014, he participated in the crowdfunding campaign of Ethereum aimed at global internet users. 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 results were not ideal.

In the coming period, two major events occurred in the Nantang Cooperative and the domestic Web3 field. First, the cooperative's mutual aid fund project collapsed. Due to factors such as the COVID-19 pandemic in 2022, the funds lent out by the cooperative could not be recovered, plunging it into a debt quagmire. Meanwhile, SeeDAO, the largest DAO organization in the Chinese-speaking world, 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, continuously focusing on the construction and development of rural China. Against this backdrop, through the connections of Liu Bing, Gu Yi, and Wang Debin, in 2023, after in-depth discussions between Yang Yunbiao, the head of the cooperative, and Bai Yu, the founder of SeeDAO, both parties began to realize that combining 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 a debt crisis. At this time, the combination of Nantang and Web3 was truly ready, only waiting for the right opportunity.

If all goes well, the first to borrow the east wind is SeeDAO. In May 2024, several members of SeeDAO went to Nantang for exchanges and inspections. In the Nantang Susheng, transformed from a rural elementary school, Brother Biao sat under the Bodhi tree with the visitors, recounting the cooperative's more than twenty years of struggle. These stories deeply moved the Web3 explorers present, who exclaimed that Nantang is simply "the Jerusalem of China's Web3." This interesting meeting ignited the enthusiasm for cooperation on both sides, and SeeDAO subsequently organized members to come for study tours and exchanges multiple times. Almost simultaneously, the cooperative launched its first internship recruitment program, opening its doors to young people with ideals for rural development. Thus, people from the vastly 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 this vibrant atmosphere that another east wind quietly rises: the establishment of a truly grounded Web3 organization is gradually transforming from a dream into reality...

In June 2024, in the magical city of Shanghai, a "Ethereum Public Summer" event organized jointly by LXDAO and ETHPanda was being prepared with great intensity, and a wonderful encounter spanning over 700 kilometers was about to happen. With the introduction and sponsorship of Liu Bing, partners from the Nantang 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. Recalling that moment, Liu Bing said he couldn't remember the specific content of the speech, but he distinctly remembered that after Tiao finished speaking, 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 Nantang!" This moment filled with childlike innocence was seen by Liu Bing as a destined connection. In the following days, Liu Bing's in-depth discussions with LXDAO member Yu Xing gradually shaped the idea of "Web3 settling in Nantang." Soon, SeeDAO's Li Zi and LXDAO's Yu Xing and Tiao became the first batch of residents to arrive in Nantang, initiating this special practice. To attract more Web3 partners to participate, Liu Bing promised to provide a reward of 0.1 ETH (approximately 2000 RMB) for each participant coming to Nantang; later, to create a more sustainable incentive mechanism, Liu Bing decided to establish a dedicated treasury to promote communication between Nantang and Web3 based on everyone's suggestions. Once the financial issues were resolved, organized work began to unfold. On July 28, 2024, the first proposal of Nantang 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 of Nantang DAO was announced.