White Paper

September 2025 Edition

1. Introduction

Blockchain technology, which has emerged in recent years, has become one of the most prominent fields in the modern technological revolution. With characteristics such as data immutability, decentralization, and transaction transparency, when combined, these features have the potential to bring revolutionary changes to many industries and social systems.

Examples of blockchain technology applications span various fields, including accelerating international remittances and reducing costs in the financial industry, improving transparency in real estate transactions, and strengthening supply chain traceability. Additionally, the use of smart contracts enables automatic financial transactions and conditional automated sales, fostering the construction of new business models and services.

Japan Open Chain is an Ethereum-compatible consortium-type public chain. It was designed as an infrastructure where businesses and individuals can conduct web3 business with confidence in the rapidly growing web3 domain. This chain maintains necessary and sufficient decentralization, high security performance, and stability, operated by trusted Japanese companies in compliance with Japanese law.

This white paper contains detailed information about Japan Open Chain, which will become the next-generation new financial infrastructure.

1.1 History and Evolution of Blockchain Technology

The history of blockchain technology began with Bitcoin's white paper published in 2008 by a person under the pseudonym Satoshi Nakamoto. Bitcoin provided a peer-to-peer electronic cash system without the need for a central authority, and the adoption of blockchain technology behind it brought attention to blockchain technology.

Following Bitcoin's success, many cryptocurrencies and projects were born based on blockchain technology. Among them, Ethereum, which appeared in 2015, introduced "smart contracts" that allow free programming execution on the blockchain, not just currency functionality. This technology elevated blockchain technology from distributed database technology to a distributed computing environment, greatly expanding the possibilities of blockchain technology.

Since then, blockchain applications have rapidly expanded, and blockchain adoption and research have progressed in many industries, including fintech, healthcare, energy, real estate, and logistics. Currently, blockchain technology continues to evolve from first-generation Bitcoin, to second-generation with smart contracts and Dapps, and third-generation with enhanced scalability and interoperability.

1.2 Development Background and Purpose of Japan Open Chain

While Ethereum's potential is remarkable, Ethereum faces numerous problems with scalability, usability, and costs. The number of transactions that can be executed per second is only about 15 on average, and program execution costs can range from hundreds to tens of thousands of yen per execution. There are also various challenges for business use, such as finality speed, chain splits due to hard forks, and ambiguous responsibility locations. Japan Open Chain was developed as a fully Ethereum-compatible blockchain supported by highly reliable Japanese companies to solve such problems.

One of the major features of Japan Open Chain is the adoption of the Proof of Authority (PoA) method as its consensus algorithm to maintain full compatibility with Ethereum while reducing scalability and costs. The adoption of this algorithm dramatically increased the speed of transactions that can be executed per second from an average of hundreds to thousands. Furthermore, to improve legal stability when conducting blockchain-based business, by selecting highly reliable Japanese companies as validators who are the operators, "Japan Open Chain" was born as a high-speed, low-cost blockchain that anyone can use with confidence for web3 business.

The blockchain-related market is predicted to grow dramatically alongside AI in the future, and "Japan Open Chain," positioned at the center of this in Japan, will be a key to opening new possibilities in IT and financial business fields. We sincerely hope that through this project, we can deliver innovative innovations to you.

2. Market Background and Opportunities

2.1 Expansion of the Blockchain Market

Blockchain technology continues to evolve, and the market utilizing this technology is rapidly expanding. It is expected to continue rapid expansion, with the potential to raise global GDP by $1.76 trillion and Japan's GDP by $72 billion by 2030.

Particularly in industries such as fintech, healthcare, logistics, manufacturing, and energy, the benefits of blockchain technology are being recognized and incorporated into actual business operations. Examples of implementation in various fields have been reported, including efficiency improvements in cross-border transactions in finance, management and sharing of medical data, and ensuring supply chain transparency.

2.2 Expansion of the NFT Market

From around 2021, attention to NFTs (Non-Fungible Tokens) and DeFi (Decentralized Finance) has increased. The NFT market saw monthly trading volume increase by +5,438% when comparing January and December 2021. The total annual trading volume of the top 10 NFT marketplace platforms in 2021 reached $239 billion. More than 65% of this was conducted on the Ethereum mainnet.

NFTs initially gained particular attention in the art and gaming fields, but now new use cases that leverage their characteristics are increasing, such as membership cards, ID certificates, and ticket usage, with further development expected in the future.

2.3 The Emergence of DeFi

With the emergence of DeFi (Decentralized Finance), it has become possible to conduct programmable financial transactions without intermediaries by trading NFTs and financial products using programs placed on the blockchain.

TVL (Total Value Locked), which indicates the amount of capital supplied to the market, increased by approximately 1,070% from $15.8 billion in January 2021 to $169.2 billion in December 2021, with Ethereum accounting for more than 50% of this.

In the future, this DeFi world is expected to encompass the entire financial industry, including securities markets and real estate markets, creating a completely new financial world different from before. Japan Open Chain is operated by Japanese companies with high legal stability, making it a very easy-to-use blockchain in the DeFi field as well.

2.4 Expansion of the Stablecoin Market

From 2020, the stablecoin market has experienced explosive growth.

Stablecoins refer to cryptocurrencies whose value is stable, linked to specific assets, currencies, or a set of assets. Stablecoins were introduced to mitigate risks from large price fluctuations of crypto assets and have increased their presence in the market in recent years.

Particularly with the emergence of decentralized finance (DeFi), stablecoins serve as transaction media and collateral, with many DeFi protocols utilizing stablecoins. Multiple stablecoins such as Tether (USDT), USDC, and DAI are circulating in the market, and their total market value is rapidly increasing, with issuance already exceeding 20 trillion yen.

The main advantage of stablecoins lies in price stability, but in addition to that, their characteristics include lower remittance fees compared to existing financial infrastructure and properties as programmable money, with expectations for diverse applications such as efficiency improvements in cross-border remittances and transactions, and expansion of access to financial services. Particularly in developing countries, people who cannot access traditional banking systems can receive financial services even without bank accounts by using stablecoins.

However, among those called stablecoins, some are issued without legal asset backing, and their value is not actually stable, with some being fraudulent tokens. In Japan Open Chain, following Japan's legal amendments regarding stablecoins, we have already conducted demonstration experiments with validators and financial institutions to issue legally very stable stablecoins backed by banks' underlying assets.

Japan Open Chain is expected to play a major role in stablecoin issuance and circulation due to its legal stability and transaction speed.

3. Ethereum and Its Problems

Due to the excitement of NFTs, DeFi, and Web3, blockchain infrastructure including Ethereum's main network has gained attention, but permissionless blockchains like Ethereum inherently face several challenges for business use. This chapter explains the current challenges.

3.1 Ethereum's Technical Method (PoS Method)

Ethereum is designed as a "permissionless blockchain" method where anyone can immediately become an Ethereum network operator by installing software and connecting to the Ethereum network.

By adopting the permissionless method, the blockchain can operate without excessive dependence on specific individuals or organizations, and services that do not comply with laws of various countries can be deployed outside those countries. This is expected to demonstrate great power particularly in cases where assets and systems need to be defended from authoritarian states.

Initially, it adopted a consensus algorithm called Proof of Work (PoW), which is also used by Bitcoin, but this method requires maximum use of computer power and has high power consumption, making it environmentally unfriendly.

Therefore, Ethereum has now transitioned to a consensus algorithm method called Proof of Stake (PoS), enabling blockchain generation with reduced environmental load. In the PoS method, to become an Ethereum operator, one can become a validator (operator) by depositing 32 Ether (approximately 12 million yen at current prices: as of October 2024).

3.2 Ethereum's Challenges

As mentioned above, while adopting the PoS method has somewhat resolved environmental load issues, Ethereum faces various other problems due to its characteristics.

3.2.1 Slow Speed Problem

In the permissionless node method, numerous node servers must coordinate using consensus algorithms like PoW or PoS methods, making it difficult to increase blockchain transaction speed. As communities grow larger, decision-making for specification changes also takes more time. Currently, Bitcoin handles about 7 transactions per second (7 TPS) globally, while Ethereum handles about 12 transactions per second on average.

This transaction limit is very small to meet global transaction demand, so as a solution, the Ethereum community is conducting research and implementation of technologies to improve scalability, such as Layer2 chains and sharding. However, Layer2 technology still has difficulties with decentralization, legal stability, and technical methods, with various challenges remaining for business use. Sharding technology is still in the conceptual stage, and implementation is said to require considerable time.

3.2.2 High Gas Fee Problem

Ethereum requires a fee called gas for transactions, necessitating payment in Ether as a transaction fee. Since Ethereum currently cannot process many transactions, traffic naturally concentrates. As more users participate, gas fees and Ether prices surge, resulting in current Ethereum requiring hundreds to sometimes tens of thousands of yen to execute a single program.

For example, even in simple use cases like sending stablecoins, it can cost hundreds to sometimes thousands of yen per transaction. Issuing 50,000 NFTs has sometimes cost over 10 billion yen.

Thus, high fees on the Ethereum mainnet have become a problem, hindering its use.

3.2.3 Finality Problem

The permissionless node method faces specific problems with finality speed - the time until transactions can be considered complete - because it must coordinate among very many participating nodes.

Blockchains approve transactions and "confirm" them by including them in blocks. However, permissionless blockchains have the problem that the time until blocks are confirmed is not constant. This is called "probabilistic finality."

While the PoS method has somewhat resolved this problem and finality is confirmed by waiting for some time, it still takes tens of seconds to several minutes for transactions to be completely completed. Until confirmation, it remains probabilistic, so there's a possibility of transaction rollbacks. This behavior can cause major problems in serious financial transactions.

3.2.4 51% Attack Problem

Blockchain consensus algorithms have a vulnerability called the 51% attack. This refers to the problem where controlling the majority of the network enables transaction tampering and double spending.

In PoW method blockchains like Bitcoin, it's possible to hijack the network by having 51% of computational power. While this is considered difficult for large-scale networks, risks increase for small-scale networks. Additionally, power consumption issues are also a concern in PoW methods.

In PoS methods, such as Ethereum 2.0, the amount of staked assets becomes more important than computer computational ability. However, high staking requirements and penalty systems tend to make participation difficult for ordinary people.

In reality, in large PoS networks like Ethereum, individual participation is difficult, so companies that perform staking on behalf of others have increased, and these companies performing large amounts of staking concentrate power on the network. Such situations contradict the decentralization ideals of blockchain.

On PoS method blockchains, when large-scale assets like stablecoins are moving, if the required staking assets are relatively small, there's also a risk that large organizations or nations could intervene by investing more than 51% of staked funds to hijack the network.

In conclusion, particularly when introducing PoS methods in small-scale networks, risks such as 51% attacks and power concentration must be carefully considered.

3.2.5 Hard Fork Problem

NFTs are products utilizing blockchain mechanisms, but the most important risk to recognize when handling them is hard forks.

A hard fork is a type of specification change method referring to updates that lack compatibility before and after the change. When hard forks occur, both chains continue after splitting. The permissionless node method operated by numerous participants makes consensus formation difficult, and chain splits have occurred several times in Bitcoin and Ethereum.

While past hard forks have sometimes benefited token holders, hard forks occurring on NFT-issuing chains pose very significant risks. This is because duplicate versions of NFTs would be generated, fundamentally conflicting with the principle that NFTs are unique.

Similarly, as assets that cannot be split like NFTs, stablecoins also exist. Naturally, stablecoins cannot be split either, so when hard forks occur in the future, there are concerns that stablecoin issuers' intentions may significantly influence chain operations.

3.2.6 Legal Opacity Problem

The legal positioning of permissionless blockchains is not yet clearly defined in many countries. This makes the legal authority of NFTs and applications and data protection uncertain. Particularly, business activities in countries with international data transfer regulations require special attention when using blockchains.

To resolve this, establishing international blockchain norms and legal frameworks is required. Additionally, clear establishment of operators' responsibility locations and clear policies regarding data protection are necessary.

Currently, companies using permissionless blockchains may face significant problems in terms of legal stability.

4. About Japan Open Chain

To solve the above challenges, Japan Open Chain was developed as a blockchain infrastructure compatible with Ethereum, enabling safe and secure Web3 business. It is designed as a consortium-type public chain operated by trusted Japanese companies in compliance with Japanese law, ensuring sufficient speed, decentralization, and high security and stability.

4.1 Concept and Purpose

Japan Open Chain is an Ethereum-compatible consortium-type public chain that can be used by users worldwide. This chain's features include full compatibility with Ethereum while adopting the Proof of Authority (PoA) algorithm, achieving high-speed transaction processing.

While the PoA method has lower validator decentralization compared to PoS methods, it possesses excellent scalability and high speed. Japan Open Chain achieves significantly faster transaction speeds compared to the Ethereum mainnet through adopting this algorithm.

In PoA methods, who becomes validators is important. Japan Open Chain resolved PoA method challenges by having major Japanese companies with high social trustworthiness become validators. Companies such as Sony Group, NTT Group, and Dentsu Group serve as validators, along with universities and web3/cryptocurrency-related companies and startups, with participating companies continuously increasing.

Thus, Japan Open Chain is positioned as an Ethereum-compatible blockchain premised on operation in Japan with political and legal stability, considering the balance between real business needs and technical challenges.

4.2 Overall Network Architecture and Technical Architecture

Japan Open Chain deploys a blockchain network based on the widely known open-source Ethereum node software, Go Ethereum (Geth).

Current Technical Configuration (v1 - Clique PoA)

Clique Consensus Algorithm: Current Japan Open Chain adopts Geth's Clique Proof of Authority (PoA) algorithm. Clique has the following features:

• Authorized Validators: 21 trusted Japanese companies participate as validators
• Block Generation: Each validator generates blocks in turn (15-second intervals)
• Instant Finality: Blocks are confirmed with signatures from a majority of validators
• High-Speed Processing: Capable of processing thousands of transactions per second

Network Operation: Each validator operates Geth nodes, ensuring network stability. Japan Blockchain Foundation regularly audits operational status, maintaining network health and transparency.

Network Access: Users can easily connect to Japan Open Chain using interfaces provided by node providers and RPC endpoint providers. Standard Ethereum JSON-RPC API compatibility allows existing Ethereum tools and libraries to be used as-is.

Future Technical Evolution (v2 and Beyond)

From v2 (Tokyo Hardfork) onward, responding to Clique support termination, the following features are planned for gradual implementation:

• Introduction of Beacon Chain for Consensus/Execution separation
• Smart contract-based validator management system
• Implementation of staking and governance functions
• Introduction of more advanced security mechanisms

4.3 Technical Features

4.3.1 Ethereum Compatibility

Ethereum is the blockchain network with the most users worldwide. Japan Open Chain focuses on compatibility with this massive ecosystem, directly using "Go Ethereum (Geth)" software, which is the most popular Ethereum operation node. This allows applications and tools that operate on Ethereum to work seamlessly on Japan Open Chain, and also enables software development to benefit greatly from the Ethereum community.

Japan Open Chain is essentially part of the Ethereum community and is assigned number 81 as an EVM-compatible chain certified by the Ethereum Foundation.

4.3.2 Transition to Proof of Staked Authority (PoSA)

Japan Open Chain is progressing transition from current Clique PoA to more evolved Proof of Staked Authority (PoSA). Tokyo Hardfork (v2) (Late 2025-2026) will introduce Ethereum beacon chain technology and implement a mechanism to control validator management with smart contracts.

The 2026 Osaka Hardfork (v3) will introduce a three-tier validator system:

• Core Validators (21 companies): Trusted Japanese companies/organizations, participating in technical and legal governance
• Standard Validators (up to 500 companies): Requiring 100,000 JOC staking, participating in block generation
• Community Validators (unlimited): Requiring 100,000 JOC staking, participating in network monitoring and governance voting

This hierarchical approach realizes a balance between high speed and decentralization, maintaining "complete finality" required by the financial industry while building a mechanism where more participants can contribute to the network.

4.3.3 Transaction Speed and Scalability

Japan Open Chain achieves further acceleration and scalability improvement through transition to PoSA:

• Current (v1): Thousands of native token transfers per second, hundreds of smart contract executions per second
• v2 Tokyo Hardfork (Late 2025-2026): Targeting maximum 5,000 TPS (theoretical value 100,000 TPS)
• v3 Osaka Hardfork (2026-2027): Processing efficiency improvement through multi-tier validators
• v4 Kyoto Hardfork (2027-2028): Quantum-resistant security and performance optimization in parallel
• v5 Gifu Hardfork (2028-2029): Latency reduction utilizing Japanese technologies like IOWN
• Beyond Gifu (2029~): Targeting tens of thousands of transactions per second through zkRollup native integration

This performance significantly outperforms Ethereum's approximately 15-20 TPS, Polygon's several hundred TPS, and even Solana's high-speed chains, as Japan Open Chain will stably achieve 5,000 TPS. Furthermore, by envisioning technical potential of over 100,000 TPS, we will respond to long-term transaction increases.

4.3.4 JOC COIN

As the fee token necessary for Japan Open Chain operation, the native token "JOC COIN" is used. This token also functions as service usage fees on the network and rewards for validators.

4.3.5 Legal Stability

Japan Open Chain operates under Japanese laws and regulations. This enhances legal safety for companies and individuals conducting business and financial transactions.

4.4 Governance Model

4.4.1 Gradual Decentralization Approach

Japan Open Chain gradually decentralizes governance:

v2 (Late 2025-2026) - Tokyo Hardfork

• On-chain validator management
• Safe (7 owners/3 signatures) → Timelock (7 days) → Core21 majority (11/21) veto rights

v3 (2026) - Osaka Hardfork

• DAO-NFT authentication system (Lv3=Core, Lv2=Standard, Lv1=Community)
• Proposal types: Standard proposals, Fast-Track proposals, Emergency Pause
• Sustainable operation through consortium tax (15-30%)

v4-v5 (2027-2028)

• Complete on-chain promotion/demotion system
• Dynamic Governance (variable thresholds according to proposal types)
• Delegated Staking & Election model
• Expansion of overseas validator ratio to 30-50%

4.5 Security Measures

Generally, when blockchains are hacked, it's either exploiting vulnerabilities in consensus algorithms or attacking security holes in the software supporting the blockchain. Japan Open Chain's security is guaranteed by both its underlying technology and operational methods.

4.5.1 Technical Architecture

Japan Open Chain adopts Go Ethereum (commonly called Geth) and Nethermind clients, which are most widely used in Ethereum networks and have been tested and improved over many years. By adopting multiple client implementations, we reduce risks of depending on a single implementation and enhance network robustness. These proven software have overcome many attacks and vulnerability tests, ensuring their safety.

4.5.2 Operational Model

The Proof of Authority (PoA) consensus algorithm, being one of Geth's official algorithms, requires attackers to hijack many validator nodes to take over the network due to its characteristics. In Japan Open Chain's case, these validators are operated by companies and organizations with social trust in Japan. This means that for attackers to control a majority of the network, they would need to simultaneously hack major Japanese companies. Such large-scale and sophisticated attacks are practically very difficult, strengthening Japan Open Chain's security.

Thus, Japan Open Chain provides sufficient security from both technical architecture and operational model perspectives.

5. Ecosystem and Partnerships

5.1 Projects on Japan Open Chain

Various projects have already started on Japan Open Chain. Particularly, due to Japan Open Chain's nature, it has good compatibility with projects that need to comply with Japanese law, such as finance and local governments, so initiatives in such fields are progressing.

5.2 Stablecoin-Related Projects

Since June 2023, with the enforcement of the new Payment Services Act, it has become possible to realize stablecoins under Japanese law. Following this legal amendment, a stablecoin project led by G.U. Technologies, one of the validators, is progressing demonstration experiments for stablecoin issuance on Japan Open Chain together with Aozora Bank, Minna no Bank (a digital bank within Fukuoka Financial Group), Kiraboshi Bank, Shikoku Bank, and others. Additionally, alongside this movement, overseas financial institutions are also beginning to consider stablecoin issuance on Japan Open Chain.

Bank-issued stablecoins backed by coin values are still rare worldwide and have attracted global attention, including coverage by authoritative overseas media such as CoinDesk in the cryptocurrency industry. When this project progresses, it will enable bank-to-bank transfers that currently cost hundreds of yen, international transfers that cost thousands of yen, and credit card payments that take several percent fees, to be realized with fees under 1 yen, bringing major transformation to the financial world.

In addition to the above, in the web3 world, a world called "programmable money" is said to be coming, where money can be programmed and moved freely. For example, a world where money is automatically paid when certain conditions are met, foreign exchange trading on blockchains without going through exchanges, or AI managing funds on your behalf.

The stablecoin market alone is currently 26 trillion yen, but it's predicted to grow to approximately 400 trillion yen market over the next five years. Japan Open Chain aims to be positioned as one of the central infrastructures in this.

5.3 NFT-Related Projects

To further advance local government DX, e-residency initiatives are gaining attention. Coregear Co., Ltd., a Sony Group subsidiary and one of the validators, is progressing demonstration experiments for e-residency using NFTs issued on Japan Open Chain in partnership with Kaga City, Ishikawa Prefecture.

E-residency is a system where even people not living in a municipality can receive some municipal services, get discounts at local stores, etc., by holding e-residency membership cards issued by the municipality. At the national level, Estonia gained attention by issuing e-citizenship.

In the future, with the advancement of remote work, people will live across regions, and in some cases, lifestyle patterns of living in various places without deciding on specific residential areas may become popular, with e-residency systems playing a part in this.

Additionally, it was adopted for NFT issuance in Japan Post's "Mirai no Yuubinkyoku (Future Post Office) Regional Charm Promotion" initiative, and partnerships with multiple NFT issuance solution companies are progressing as development partners. We expect various types of NFTs to be issued in the future.

5.4 Collaboration with Global Projects

Japan Open Chain is advancing partnerships with node providers, cross-chain protocols, cryptocurrency exchanges, DeFi projects, etc., not only domestically in Japan but also overseas. Supported projects will be announced sequentially on websites or SNS.

5.5 Others

Additionally, usage is being considered in fields such as finance, supply chain, real estate, entertainment, and education, with several projects actually starting. Each project will be announced sequentially on websites or SNS when they reach the announcement stage.

Japan Open Chain contributes to the spread of web3 technology in Japan and the world through partnerships with companies in various fields.

6. Token Economics

6.1 Role and Benefits of JOC COIN

The JOC COIN operating at the center of Japan Open Chain is the fee currency required for diverse transactions on the platform, such as remittances, NFT issuance, and smart contract deployment. In other words, when conducting transactions on Japan Open Chain, JOC COIN must be paid as fees. However, fees can also be paid by others on behalf, so transactions can sometimes occur without the transaction parties bearing the cost.

Validators verify the authenticity of transactions, and if verified as problem-free, they generate new blocks and add the content to existing blockchains with their authority. Receiving JOC COIN as gas fees as compensation for this effort forms the foundation of this ecosystem.

Like Ethereum, JOC COIN transaction fee mechanisms are also dynamically adjusted with market supply and demand, maintaining fairness and transparency. When Japan Open Chain demand increases, JOC COIN rises, and when demand heats up, price increases suppress traffic, maintaining Japan Open Chain traffic stability through such supply-demand balance.

Additionally, JOC COIN is used as funds to encourage development of new applications and dApps through grants and funding to collaborators and external developers considered to contribute to Japan Open Chain ecosystem development. Developers receiving JOC COIN can expect value appreciation like stocks or stock options if their achievements expand the ecosystem.

6.2 Total Issuance

JOC COIN has a total issuance of 1 billion tokens minted at network creation, and basically will not increase in the future. Since Japan Open Chain's London Hard Fork is scheduled to be applied, the total available supply will gradually decrease. In other words, JOC COIN is deflationary currency, and we believe its intrinsic value will increase just by holding it.

6.3 Japan Open Chain Transaction Fee Mechanism

6.3.1 Gas

Gas is used for payments of transactions on Japan Open Chain's blockchain. The amount of gas required for each transaction varies depending on transaction complexity. Simple JOC COIN transfers require 21,000 gas, but more complex transactions (e.g., those used in decentralized finance DeFi) may require over 1,000,000 gas.

6.3.2 Gas Price

Gas has a price called "gas price." Gas price is expressed in gwei, with 1 JOC = 1 × 10^9 (1,000,000,000) gwei. When gas price is 100 gwei, a 21,000 gas transaction costs 21,000 × 100 = 2,100,000 gwei (0.0021 JOC) as gas fees.

The amount of gas required for transactions is constant, but gas price fluctuates. Users set gas price when sending transactions (often done automatically by wallet software), and transactions are then approved by validators, with gas fees paid to approving validators as transaction fees.

6.4 Interrelationship with Stablecoins

Stablecoins are planned to be issued on Japan Open Chain under the ERC20 standard. JOC COIN is used as fee currency for stablecoin transfers. In other words, every time stablecoins are issued and used for transfers on Japan Open Chain, JOC COIN is consumed.

Stablecoins are expected to become central to all web3 financial transactions in the future, so the extent to which stablecoins are issued on that blockchain affects the price formation of JOC COIN, the fee currency on that blockchain.

From the above, various banks issuing stablecoins on Japan Open Chain increases Japan Open Chain token value, benefiting the entire Japan Open Chain participating community.

7. About Token Sale

7.1 Token Sale (IEO) Overview

JOC COIN falls under the so-called "Type 1 crypto assets" defined in Article 2, Paragraph 14, Item 1 of Japan's revised Payment Services Act. The initial sale (IEO) of JOC COIN was conducted in December 2024, and after subsequent listings on multiple domestic and international exchanges, they are now globally distributed as of 2025.

Token Sale (IEO Overview)

Item	Content
Official Token Name	JOC COIN
Issuer	Japan Blockchain Foundation Co., Ltd.
Ticker Symbol	JOC
Token Standard	Japan Open Chain Native Token
※Japan Open Chain is an Ethereum-compatible consortium-type public chain.
Legal Position	So-called "Type 1 crypto assets" defined in Article 2, Paragraph 14, Item 1 of the revised Payment Services Act
IEO Sales Volume	50,000,000 tokens (5% of total issuance)
IEO Implementation Company	Japan Blockchain Foundation Co., Ltd.
Sales Method	Announced by IEO implementation company
Sales Target	Account holders of IEO implementation company
Schedule	Conducted in December 2024 (Total applications of approximately 9 billion yen, approximately 1.2 billion yen worth of JOC sold)

7.2 Use of Funds Raised in IEO

The breakdown of fund usage raised through IEO is as follows:

• 24%: Protocol and application research and development promotion
  • Used to promote research and development of Japan Open Chain and applications running on the chain.
• 22%: Marketing
  • Used for ecosystem user expansion and acquisition of new content using Japan Open Chain.
• 17%: Operations
  • Used for operating staff compensation.
• 22%: Contractor payments
  • Used for payments to external contractors such as crypto asset exchange operators, accountants, and lawyers necessary for stable operation of Japan Open Chain.
• 15%: Reserve

Fund usage may vary within the following ranges after final fundraising amount is determined:

• 20 - 30%: Protocol and application development promotion
• 20 - 30%: Marketing
• 12 - 21%: Operations
• 18 - 25%: Contractor payments
• 10 - 20%: Reserve

7.3 Initial Allocation

In Japan Open Chain, the upper limit of mintable JOC tokens is 1 billion tokens, all minted when the network started. Minted tokens are planned for IEO after review by crypto asset exchange operators supervised by JVCEA (Japan Virtual and Crypto Assets Exchange Association), a certified payment services association, and the Financial Services Agency. In the initial stage, tokens are managed by Japan Blockchain Foundation as the issuer, centered on co-operating entities including issuers, with issuance to parties contributing to the community for forming good token economics.

• Token Sale (IEO): 5% (50,000,000 JOC)
  • Sold in token sale (IEO).
• Early Supporters: 10.0% (100,000,000 JOC)
  • Allocated to early-stage investors and supporters of the project.
• Validators: 13.4% (134,200,000 JOC)
  • Distributed to validators operating nodes.
• Research & Development: 19.5% (195,000,000 JOC)
  • Used for developer incentives.
• Community Operations: 10.0% (100,000,000 JOC)
  • Fund for maintaining and developing Japan Open Chain.
• Ecosystem: 30.1% (300,800,000 JOC)
  • Used for ecosystem user expansion and acquisition of new content using Japan Open Chain.
• Partner Rewards: 12.0% (120,000,000 JOC)
  • Used as incentives for supporters performing ecosystem expansion.

After all tokens are issued, Japan Blockchain Foundation will not mint new tokens and will operate as a blockchain network and JOC COIN management company, conducting audits of validator node operations, supporting quality token economics, promoting technical research, and reporting annually to the Financial Services Agency on network and token status. The costs for this will be covered by consortium participation fees from each validator and token income.

7.4 Lock-up Schedule

Each allocation has lock-ups set to avoid excessive selling pressure after IEO.

• Token Sale (IEO): 5.0% (50,000,000 JOC)
  • Sold in token sale (IEO). Full amount circulates in market without lock-up.
• Early Supporters: 10.0% (100,000,000 JOC)
  • Lock-up schedules vary by early supporter, so not uniform, but partial at IEO, gradual lock-up release after 6 months, with all tokens available for circulation after 18 months. Detailed monthly release schedule is available in
    separate materials
    .
• Validators: 13.4% (134,200,000 JOC)
  • All locks released over maximum 100 months after mainnet launch. Pre-IEO allocated distributions released over 18 months from IEO implementation. Amounts vary by validator participation timing, so not uniform, but detailed monthly release schedule is available in
    separate materials
    .
• Research & Development: 19.5% (195,000,000 JOC)
  • Equal lock release over 60 months starting 6 months after IEO.
• Community Operations: 10.0% (100,000,000 JOC)
  • Equal lock release over 60 months starting 6 months after IEO.
• Ecosystem: 30.1% (300,800,000 JOC)
  • Half of allocation is locked up, released over 36 months after IEO. Remainder is not locked up but will be used for overseas exchange liquidity provision and other ecosystem expansion from IEO time.
• Partner Rewards: 12.0% (120,000,000 JOC)
  • Gradually released over 54 months after IEO. Lock-up schedules vary by partner, so not uniform, but detailed monthly release schedule is available in
    separate materials
    .

Lock-up Release Percentage Table (End of Each Year)

Target	Total Quantity	2024	2025	2026	2027	2028	2029	2030	2031	2032
IEO	50,000,000	5.00%	5.00%	5.00%	5.00%	5.00%	5.00%	5.00%	5.00%	5.00%
Early Supporters	100,000,000	1.12%	6.53%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%
R&D	195,000,000	0.00%	2.27%	6.17%	10.07%	13.97%	17.87%	19.50%	19.50%	19.50%
Community Operations	100,000,000	0.00%	1.17%	3.17%	5.17%	7.17%	9.17%	10.00%	10.00%	10.00%
Validators (Co-operators)	134,200,000	0.00%	3.19%	5.76%	7.42%	9.16%	10.90%	12.10%	13.10%	13.42%
Ecosystem	300,800,000	15.04%	20.05%	25.07%	30.08%	30.08%	30.08%	30.08%	30.08%	30.08%
Partners	120,000,000	0.75%	5.26%	8.56%	10.11%	11.45%	12.00%	12.00%	12.00%	12.00%
Total	1,000,000,000	21.91%	43.48%	63.72%	77.86%	86.83%	95.03%	98.69%	99.68%	100.00%

Note that the above shows current lock-up schedules, and release schedules may change due to circumstances such as locked token allocation not yet being confirmed (future validators, etc.). Changed information will be appropriately announced to the market through crypto asset exchange operators. Also, not all unlocked tokens will be sold, so not all tokens will circulate simultaneously with lock-up release.

7.5 Global JOC COIN Listing and Liquidity

In the December 2024 IEO of JOC COIN, there were applications of approximately 9 billion yen, and approximately 1.2 billion yen worth of JOC was sold. After the IEO, they were sequentially listed on crypto asset exchanges in Japan and worldwide, and currently, they are traded on major domestic exchanges and multiple overseas crypto asset exchanges, achieving high liquidity not only in Japan but worldwide. We will continue expanding exchanges and aim for further liquidity improvement.

8. Management Structure and Governance

8.1 Validators and Their Roles

Japan Open Chain validators are selected from major Japanese companies such as NTT Group, SONY Group, and Dentsu Group. These validators play a role in ensuring network stability and transaction accuracy, enhancing Japan Open Chain's reliability as organizations deeply rooted in Japan's business ecosystem. Furthermore, to promote ecosystem diversity and sustainable growth, we plan to welcome reliable financial groups, media companies, and other cryptocurrency-related companies and startups as validators in the future.

8.2 Japan Open Chain Operating Organizations and Their Responsibilities

Japan Blockchain Foundation is positioned as the central entity in consortium operation management as the Japan Open Chain consortium management administrator. This organization is responsible for establishing and operating the Japan Open Chain secretariat, working toward stable community operation. Japan Blockchain Foundation conducts IEO after review by crypto asset exchange operators supervised by JVCEA (Japan Virtual and Crypto Assets Exchange Association), a certified payment services association, and the Financial Services Agency. Even after IEO implementation, it will receive continuous monitoring from crypto asset exchange operators that conducted IEO regarding information disclosure systems about project progress and appropriate management systems for raised funds.

Detailed information can be found on the official website https://www.jbfd.org/.

8.3 Japan Open Chain Partners

Japan Open Chain emphasizes collaboration with diverse stakeholders. Particularly, it promotes partnerships with various organizations through the development partner system. All users and partners participating in this ecosystem are indispensable for Japan Open Chain's growth and innovation, aiming to create new value together. Partner details are updated regularly, so please check the official website (https://www.japanopenchain.org).

9. Roadmap

This chapter provides a detailed explanation of Japan Open Chain's future roadmap. Japan Open Chain has formulated a roadmap for evolution through phased hard forks and new feature introductions from 2025 to 2030 and beyond.

9.1 Roadmap Overview

Japan Open Chain will evolve through the following five major hard forks:

• Tokyo Hardfork (Late 2025-2026)：Transition to PoSA (PoAv2), synchronization with Ethereum "Prague/Electra", targeting maximum 5,000 TPS
• Osaka Hardfork (2026-2027)：Introduction of 500 standard validators in addition to 21 core validators, maximum 50 million JOC staking
• Kyoto Hardfork (2027-2028)：Quantum-resistant security enhancement, validator decentralization, disaster resilience strengthening
• Gifu Hardfork (2028 and beyond)：Latency reduction utilizing Japanese technologies like IOWN, permanent storage layer decentralization
• Beyond Gifu (2029-2030 and beyond)：Gradual introduction of advanced features such as zkRollup, dynamic governance, cross-chain bridges

Through these, Japan Open Chain will establish itself as a next-generation international financial infrastructure equipped with "world-class performance," "quantum-resistant security," and "innovative governance."

9.2 Detailed Roadmap

9.2.1 Tokyo Hardfork – Japan Open Chain v2 (2025-2026)

The "Tokyo Hardfork" scheduled from late 2025 to 2026 will transition from the traditional Clique PoA to a new PoSA method (PoAv2) utilizing a beacon chain similar to Ethereum mainnet's PoS, and adopt Nethermind nodes as validator nodes. This will synchronize with Ethereum mainnet's latest version "Prague/Electra," further strengthening compatibility with Ethereum.

Additionally, we will establish a technical foundation to leverage Nethermind nodes' potential processing performance of over 100,000 TPS, and by adjusting gas limits (processing volume limits per block) while considering storage capacity in actual operation, we will first raise network performance to a maximum of 5,000 TPS.

This performance will significantly outperform Ethereum's approximately 15-20 TPS, Polygon's several hundred TPS, and even Solana's high-speed chains, as Japan Open Chain will stably achieve 5,000 TPS. Furthermore, by envisioning technical potential of over 100,000 TPS, we will respond to long-term transaction increases.

Key Features:

• PoA v2 + Beacon Chain separation for execution/consensus layer advancement
• New governance model through on-chain validator registry
• Targeting processing performance increase to maximum 5,000 TPS (theoretical value 100,000 TPS)

The realization of this phase will further accelerate adoption in areas requiring high frequency and high reliability, such as financial transactions including stablecoins and equity tokens, and large-scale on-chain games.

The name "Tokyo" was chosen as it represents Japan's capital and financial center.

9.2.2 Osaka Hardfork – Japan Open Chain v3 (2026-2027)

This hard fork will introduce a mechanism allowing 500 standard validators to participate in addition to 21 core validators. This hard fork will create a more decentralized blockchain operation system while maintaining governance control through core validators, developing into an even more secure and safe blockchain.

Key Features:

• Decentralization through multi-tier validators (Core 21, Standard 500)
• Domestic and international validator participation through NFT authentication + staking
• Maximum 50 million JOC staking slots through 100,000 JOC deposits (planned)

Standard validators will be approved through certification NFTs issued to organizations meeting certain conditions after review by consortium administrators, along with staking of a certain amount of JOC.

After this hard fork implementation, not only domestic core validators but also international validators will be able to participate, dramatically improving network decentralization and fault tolerance. Additionally, the introduction of fee-sharing models will expand staking demand, increasing potential demand for JOC COIN investors. By limiting core validators participating in major decisions to Japanese companies, Japan's political and economic stability will continue to contribute to chain governance.

The name "Osaka" was chosen as it represents the site of the World Expo where pavilions from around the world gather in Japan, anticipating the future where validators participate from around the world.

9.2.3 Kyoto Hardfork – Japan Open Chain v4 (2027-2028)

This hard fork will further evolve the design for "1000-year sustainable chain" that Japan Open Chain has been advocating for data inheritance across generations.

To achieve this, we will fully consider quantum computer resistance by referencing research results on quantum resistance in the Ethereum community. Simultaneously, we will further advance validator community operations and geographical decentralization of servers within Japan, aiming for a network resilient to disasters.

Key Features:

• Full-scale quantum resistance introduction
• Further decentralization of validator community operations
• Strengthening of domestic geographical server decentralization

After this hard fork, possessing security that can withstand the post-quantum era will enable safe preservation of long-term holding assets and nationally important data. This will further accelerate adoption in government agencies and financial institutions with strict regulations, making it a more accessible chain for users who prioritize reliability.

The name "Kyoto" was chosen as it represents Japan's ancient capital that has lasted "over 1000 years."

9.2.4 Gifu Hardfork – Japan Open Chain v5 (2028-2029)

This hard fork will implement consensus layer latency reduction through high-speed network introduction utilizing Japanese technologies including NTT's IOWN, and permanent storage layer decentralization utilizing disaster-resistant regions and politically and geographically stable locations domestically and internationally.

Key Features:

• Consensus layer latency reduction, high-speed network infrastructure
• Permanent storage layer redundancy
• Beacon redundancy in Japan, Switzerland, and other multiple locations, L2 optimization

Achieving extremely low latency performance and high availability at edge endpoints will enable sufficient response to use cases where latency is critical, such as high-frequency trading, IoT device communication, and real-time experiences in the metaverse. Such performance improvements will significantly enhance user experience and promote overall ecosystem adoption.

The name "Gifu" was chosen as it represents a highly popular tourist destination internationally, with strong geographical bedrock, and important facilities for Japanese science and technology such as neutrino detectors.

9.2.5 Beyond Gifu (2029-2030 and beyond)

Future plans beyond this point still have many uncertain elements, but we will advance technical and operational improvements, interoperability, scalability, and governance innovation at a pace of once per year.

Anticipated Hard Fork List:

• Sapporo v6: Native zkRollup, MEV safety design, privacy enhancement
• Nagoya v7: Delegated staking, dynamic governance, AI voting support
• Fukuoka v8: Trust-minimized cross-chain bridge introduction (IBC/XCM)

*Note: Schedules are subject to change.

9.3 Native Token Name Change (JOC COIN)

From September 1, 2025, as part of a brand strategy aimed at improving international ecosystem recognition, the native token name that has been known as "Japan Open Chain Token" will be changed to the more pronounceable "JOC COIN." This will make it more intuitive and memorable for developers, users, and investors, while the "COIN" designation will clarify its position as a payment method, asset, and investment target, and by eliminating geographical factors, it will further accelerate penetration in global markets like Bitcoin, which is advancing strategic accumulation.

9.4 Development Roadmap

Japan Open Chain will invest in technical research for blockchain and web3 technology development.

9.4.1 Technical Research

• Protocol improvements: TPS enhancement, quantum resistance realization, robustness strengthening
• Tools and applications: Development of wallet technology and applications for usability enhancement, smart account support such as EIP4337
• Interoperability: Strengthening collaboration with other blockchains

9.4.2 Development of Various Tools

• Adoption of tools leveraging Ethereum compatibility
• Development of wallets, authentication methods, and NFT management tools in response to mass adoption of web3 solutions

9.5 Project Roadmap

For Japan Open Chain development, we plan to advance projects with various companies and web3 businesses.

9.5.1 Stablecoin Issuance

• Progressing demonstration experiments for Japanese yen and foreign currency-denominated stablecoin issuance in partnership with Kiraboshi Bank, Minna Bank, Shikoku Bank, and other financial institutions
• Advancing demonstration experiments with businesses hoping to utilize stablecoins for web3 payments such as NFT sales and existing payments to achieve cheaper fees and instant deposits
• This will create an environment where companies can easily enter web3 business, such as being able to buy and sell NFTs without going through crypto assets

9.5.2 Alliance and Partner Expansion

• Partnership agreements with crypto asset exchanges, listing implementation
• Strengthening cooperation with global node providers and NFT marketplaces
• Collaboration with cross-chain protocols
• Collaboration with NFT and DeFi partners

9.5.3 Operation Phases

• Phases 0-2: Launch Phase
  • Network development, testnet operation, mainnet launch phases. These phases have already been completed.
• Phase 3: General Opening Phase
  • Purpose
    • To create an environment where general users can easily use the chain
  • Policy
    • We will expand the user base by opening endpoints to the public, expanding node providers, expanding the ecosystem, and making fee tokens liquid.
• Phase 4 and beyond:
  • Purpose
    • To expand ecosystem scale and decentralization, and enhance blockchain network robustness and stability
  • Policy
    • We will implement partnerships with web3 application providers worldwide, develop tools for usability improvement, conduct technical research and development for network stability and robustness, and strengthen governance.

9.6 Future Outlook

Japan Open Chain aims to become a world-standard next-generation financial infrastructure by 2030, leveraging the strengths of "Ethereum full compatibility × Japanese reliability." Through the integration of robust operation systems by Japanese companies and cutting-edge technology, we will build a secure, safe, and sustainable global chain.

10. Project Risks

10.1 Community Risk

Project success heavily depends on an active and healthy community. If the community becomes inactive or internal conflicts occur, there are risks of project development and progress delays. Additionally, losing community trust could lead to project evaluation and value decline.

10.2 Security Risks and Countermeasures

Japan Open Chain achieves high security through a multi-layered defense model, but implements continuous countermeasures against the following potential risks:

10.2.1 Response to Cryptographic Technology Evolution

Risk: Emergence of quantum computers and rapid evolution of cryptographic technology

Countermeasures:

• Quantum-resistant cryptographic technology research and development (planned for implementation in v6 and beyond)
• Following latest security standards
• Regular security audits and updates

10.2.2 Validator Security

Risk: Simultaneous compromise of majority validators

Countermeasures:

• Risk distribution through three-tier validator structure
• Economic security through staking and slashing mechanisms
• Strict review and KYC of core validators
• Anomaly detection through on-chain monitoring systems

10.2.3 Continuous Security Strengthening

Japan Open Chain continuously strengthens security through the following measures:

• Regular Audits: Quarterly security audits and penetration tests
• Bug Bounty: Vulnerability discovery reporting program
• Incident Response: 24-hour monitoring and response team
• Community Collaboration: Transparent sharing of security information
• Technical Updates: Rapid application of Ethereum's latest security patches

Disclaimer

Regarding all information contained in this white paper, operators and information providers are exempted from liability for the following items.

(1) This white paper is for information purposes only and does not guarantee accuracy, reliability, or completeness.

(2) Operators and information providers assume no liability for any damages based on information in the white paper.

(3) Information contained in the white paper may include uncertain factors and may differ from planned changes or actual results. All information is from the time of creation, and operators and information providers may change, add, or abolish all or part without prior notice as necessary, which viewers agree to in advance.

(4) All information in the white paper is not for investment proposals, solicitation, or advice, but solely for information provision.

(5) The white paper provides no guarantee regarding regulatory status, tax characteristics, approval and pricing of tokens, or their sale. Publication and distribution of the white paper does not imply compliance with applicable laws and regulations.

(6) It is recommended to consult specialists regarding legal, financial, tax, and technical matters described in the white paper.