In the fast-evolving world of Web3, few voices carry the blend of vision, pragmatism, and cultural insight as Sota Watanabe, founder and CEO of Astar Network. As a leading figure in Japan’s blockchain renaissance, Watanabe has not only built a powerful technical infrastructure on Polkadot, but also become a key advocate for Web3 adoption, NFT innovation, and DAO-driven economies in one of the world’s most tradition-bound yet tech-savvy societies.
This deep dive explores his journey, philosophy, and roadmap for a decentralized future — one where community ownership, global participation, and cross-chain interoperability redefine how value is created and shared.
From Tokyo to Web3: The Making of a Pioneer
Sota Watanabe’s path into blockchain began not with code, but with a desire to solve real-world problems. After working with nonprofit organizations across India, China, and Russia, he witnessed firsthand the systemic gaps in equality, environmental sustainability, and access to opportunity.
“I realized that if you want to change millions of lives, education can help 30 people at a time — but technology can scale infinitely,” Watanabe recalls.
Inspired by a WIRED magazine feature titled “Blockchain Will Change the World,” he dove into the space five years ago. His early career included stints in San Francisco and Shanghai, but it was upon returning to Japan — and witnessing the country’s stagnation in the Web2 era — that his mission crystallized.
Japan produced no global tech giants like Google, Amazon, or Tencent. Its startups often aimed for domestic IPOs rather than global disruption. For Watanabe, Web3 represented Japan’s second chance — a rare opportunity to leapfrog ahead on a new technological frontier.
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Why Polkadot? The Strategic Choice Behind Astar Network
Astar Network is built as a smart contract hub on Polkadot, leveraging its unique architecture to enable seamless multi-chain communication. But why Polkadot?
Watanabe credits Gavin Wood, co-founder of Ethereum and creator of Polkadot, as a major influence. After hearing Wood speak about Web3’s vision in Tokyo in 2019, Watanabe was convinced: Polkadot’s design — with a central relay chain connecting independent parachains — offered the most scalable and secure path toward true interoperability.
However, there was a critical gap: Polkadot’s relay chain does not support smart contracts. That created an opening — and an opportunity.
“Everyone in the ecosystem needed a place to build dApps. We saw that need and stepped in.”
Thus, Astar was born — a multi-virtual machine (EVM + WebAssembly) platform designed to serve developers building across chains. Unlike many platforms focused solely on Ethereum compatibility, Astar embraces both current and future standards:
- EVM Support: For developers already experienced with Solidity and Ethereum tooling.
- WebAssembly (WASM): For next-gen applications requiring higher performance and broader language support.
This dual approach ensures smooth migration from existing ecosystems while preparing for the future of decentralized computing.
Bridging Chains, Empowering Developers
At its core, Astar Network solves two fundamental challenges:
- Cross-chain fragmentation
- Developer accessibility
Today’s blockchain landscape remains siloed. Moving assets between chains is slow, expensive, and risky — especially when relying on third-party bridges vulnerable to hacks (e.g., Ronin, Harmony).
Polkadot’s native trustless cross-chain messaging (XCM) eliminates these risks. With Astar, users can transfer tokens between parachains like Acala, Moonbeam, and Shiden without intermediaries.
And because Astar supports both EVM and WASM, developers aren’t forced to choose between familiarity and innovation.
“We’re not betting on one standard. We’re enabling transition — from EVM today to WASM tomorrow.”
This flexibility is key to attracting global talent and accelerating adoption.
Shiden Network: The Canary in the Coal Mine
Before launching on Polkadot, Astar launched Shiden Network on Kusama — Polkadot’s experimental “canary network.” While often mistaken for a testnet, Kusama carries real economic value and serves as a proving ground for high-risk innovations.
Shiden allows teams to experiment with new features, governance models, and dApp designs in a live environment — reducing risk before deployment on Polkadot.
“Think of Kusama as the startup lab, and Polkadot as the enterprise production line.”
This two-tier strategy reflects Astar’s long-term thinking: innovate boldly where failure is acceptable, then scale securely where stability matters most.
NFTs as Economic Revitalization Tools
While many associate NFTs with digital art or speculation, Watanabe sees deeper potential — particularly in Japan’s rural communities.
Take Nishikigoi Village, a tiny aging town with fewer than 800 residents. By launching an NFT collection, the village raised funds to combat depopulation and invited global citizens to become “digital villagers” — gaining voting rights, event access, and emotional connection through Discord.
“This isn’t just fundraising. It’s redefining citizenship in the digital age.”
Watanabe believes such use cases could be replicated nationwide — especially if Japan establishes clear regulatory frameworks around NFT-based governance, tax treatment, and digital residency.
He emphasizes:
- Japan’s rich cultural IP (anime, manga, gaming) gives it a natural advantage.
- Government guidance is essential to move beyond speculation toward utility.
- Communities must retain control over their digital identities and economies.
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DAOs: Rethinking Work Culture in Japan
Japan’s corporate culture is famously hierarchical — rigid structures, lifetime employment, and top-down decision-making dominate. Yet Watanabe envisions a future where DAOs (Decentralized Autonomous Organizations) offer an alternative: meritocratic, borderless, and incentive-aligned.
Astar itself operates with strong DAO principles:
- Over 360,000 wallet addresses participate in its ecosystem.
- Community members earn $ASTR tokens for contributions: translation, content creation, developer support, event hosting.
- Some contributors earn up to $7,000/month — life-changing income in developing countries.
“In traditional companies, you get paid whether you add value or not. In a DAO, your impact is transparent and rewarded accordingly.”
But widespread adoption requires better tooling: tax calculators, legal frameworks, payroll systems tailored for decentralized work. Until then, DAO participation will remain largely supplemental — especially in developed nations.
Still, Watanabe predicts a shift:
“People will eventually contribute to multiple DAOs simultaneously. Why work one 9-to-5 job when you can earn more across five flexible roles?”
The Tax Barrier: Why Japan Is Losing Web3 Talent
One of Japan’s biggest hurdles? Tax policy.
Under current rules, unrealized capital gains — including token valuations — are taxable annually. This means founders could owe taxes on paper gains they haven’t yet liquidated.
“If your project’s valuation jumps to $1 billion and you hold 50%, Japan may tax you on $500 million — even if you’ve sold nothing.”
Compare this to Singapore or the U.S., where unrealized gains aren’t taxed. The result? Many Japanese entrepreneurs relocate — including Watanabe himself.
“I moved to Singapore because I didn’t want my company to die from tax pressure alone.”
Until reform arrives, Japan risks missing its Web3 moment despite having the talent and culture to lead.
Building a Sustainable Future: Culture & Commitment
Despite rapid growth — 31 team members across Asia, Europe, and North America — Astar maintains a lean, transparent culture:
- Fully remote operations with no fixed hours.
- Public token allocation schedules (only salaries are private).
- Performance measured by output, not presence.
Watanabe leads by example:
- Works from 10 AM to midnight daily.
- Never flies business class.
- Prioritizes humility over status.
“If you’re rich, you stop feeling urgency. If you’re poor — or act like it — you stay hungry.”
This mindset fuels resilience during bear markets when others retreat.
FAQs: Your Questions Answered
Q: What is Astar Network’s main function?
A: Astar is a multi-chain smart contract platform on Polkadot supporting both Ethereum Virtual Machine (EVM) and WebAssembly (WASM), enabling developers to build interoperable dApps across blockchains.
Q: How does Astar differ from other Polkadot parachains?
A: While others focus on DeFi (Acala) or Ethereum compatibility (Moonbeam), Astar uniquely supports dual virtual machines and emphasizes cross-chain innovation through trustless messaging (XCM).
Q: Can individuals really earn income through Astar’s DAO?
A: Yes. Contributors earn $ASTR tokens for activities like content creation, translation, developer advocacy, and community management — with some earning thousands per month.
Q: Why did Sota Watanabe move to Singapore?
A: Due to Japan’s taxation of unrealized crypto gains, which poses existential risks for early-stage Web3 startups relying on token-based equity.
Q: What role do NFTs play in Astar’s vision?
A: Beyond collectibles, NFTs represent tools for community ownership, digital citizenship, and rural economic revitalization — exemplified by projects like Nishikigoi Village.
Q: Is now a good time to build on Astar during a bear market?
A: Absolutely. As history shows (post-dot-com bubble), major innovations emerge during downturns. Infrastructure built now lays the foundation for the next bull cycle.
Final Thoughts: The Road Ahead
Sota Watanabe isn’t just building a blockchain — he’s helping reshape Japan’s place in the global digital economy. From advocating for pro-Web3 policies at the highest levels of government to empowering individuals worldwide through decentralized work, his vision transcends technology.
Astar Network stands at the intersection of interoperability, community ownership, and global inclusion — offering developers the tools they need today while paving the way for tomorrow’s breakthroughs.
As the world enters what may be crypto’s “dot-com winter,” pioneers like Watanabe remind us: the most lasting changes happen not during euphoria, but in silence — when builders keep coding, communities keep contributing, and visionaries keep believing.
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