Gaiax: a Publicly Listed “Community” of Entrepreneurs
The RenDanHeYi model, developed by Haier Group CEO Zhang Ruimin in 2005, is revolutionary management philosophy aimed at transforming traditional hierarchical corporate structures into highly adaptive, customer-centric ecosystems. Rooted in the belief that employees (Ren) and their entrepreneurial capabilities should align with customer needs (Dan) to create value, the model emphasizes individual accountability and dynamic organizational roles (HeYi). By dismantling conventional silos, the RenDanHeYi model fosters a network of autonomous micro-enterprises within the larger corporate entity, transforming the organization into a nimble startup factory.
To develop and share the idea of Zero Distance and its broader management philosophy of RenDanHeYi, Haier hosts an annual forum to celebrate the world's most progressive organizations. This September marks the 8th edition of the forum, taking place in Haier’s hometown, Qingdao, on September 20. Working with the Business Ecosystem Alliance and the Management Lab, the Haier Model Institute will release the inaugural listing of the progressive companies which are putting Zero Distance and related ideas into practice.
These organizations are characterized by:
Zero Distance to customer | Decision what to build is based on insights from the marketplace
Autonomy | Small teams with full decision-making autonomy enable speed in execution
Shared Rewards | Everyone in the micro-enterprise participates in its financial success
For the 2024 inaugural ZeroDX awards, Haier approached us to list 50 self-managed organizations that showcase the principles of RenDanHeYi in how they organise their work. Gaiax is one of the 50 organisations we listed this year.
Introducing Gaiax
Gaiax, a publicly listed company based in Tokyo with a team of around 150, was founded in 1999 by 24 year old Yuji Ueda. Unlike traditional companies with a singular focus, Gaiax has evolved into a vibrant ecosystem of businesses and entrepreneurs within a flat, community-like structure. At the heart of all its operations lies a mission to “empower people to connect”, a principle that guides the company’s diverse ventures in internet services, from social media marketing to the sharing economy and web3. The company’s innovative approach to growth and member engagement distinguishes it in the ever-evolving landscape of modern business.
Gaiax is a prime example of RenDanHeyi principles. From its decentralized ecosystem of businesses, via the entrepreneurship culture it breeds and all the way to the customer driven innovation, it serves as a bright example of what is possible when you unleash the passion and talents of people.
Organizational Structure
Gaiax's organizational structure is designed to foster entrepreneurship and innovation. It considers the "individual passion" to be the most critical management resource and upholds the philosophy of "Igniting Responsibility". This philosophy is about not dismissing societal challenges as someone else’s problem but rather taking ownership, articulating a vision and sense of purpose, and connecting with like-minded individuals, organizations, and society to drive business forward. As a result, Gaiax has consistently nurtured a significant number of young entrepreneurs, establishing its reputation as a company that produces and fosters entrepreneurial talent and business creators. By leveraging this track record and a unique organizational culture, Gaiax aims to create a positive societal impact through the reproducible process of nurturing and unleashing people's passion and talents.
On average, Gaiax business divisions consist of about 10 members, with three divisions expanding to as many as 40 members in recent years. The company has introduced a "carve-out option system," allowing division leaders to incorporate their business into a separate entity, with up to 50% of the shares granted to the business members as stock options. This system empowers the management team to own voting rights, secure external funding, and accelerate business growth. By creating an environment where individuals have the responsibility, authority, and autonomy similar to that of a business owner, Gaiax aims to enable each venture to grow and succeed on their own.
Approach to Customers
Gaiax's approach to customers is deeply rooted in its mission to "empower the people to connect" through technology. The company has evolved through several business phases:
Web communities (1999-2004): Gaiax initially focused on enhancing portal sites with community-building features like diaries, avatars and multiuser games.
Social Media (2010 onwards): With the rise of social media platforms, Gaiax positioned itself as a specialist in social media operational support, helping businesses leverage these platforms and connect with their customers.
Sharing Economy (2015 onwards): Gaiax embraced the sharing economy by launching services like ADDress, a nationwide home-sharing service and Aini - an experience sharing platform among many others. The company's office, Nagatacho GRiD, became an epicenter of the sharing economy's principles, creating a public space where internal and external individuals collaborate freely.
Web3/DAO (2022 onwards): Gaiax has started exploring initiatives related to web3 and Decentralized Autonomous Organizations (DAOs), aligning with its culture of openness and decentralization.
Throughout these transitions, Gaiax has maintained a focus on user co-creation, leveraging its expertise in social media and community building to create value for its customers.
Gaiax's business divisions operate with full autonomy, enabling them to make quicker operational decisions, implement unique initiatives often co-created with customers, adjust policies flexibly, and seek external funding. This approach allows them to act more like business owners rather than employees constrained by managerial evaluations, established practices or in-house budget. This culture of autonomy and entrepreneurship is further evidenced by the fact that 60% of all graduates who join Gaiax straight out of college become entrepreneurs, with 23% of them within the first year of employment and 45% within three years. Although Gaiax is a company of around 140 people, its alumni investees have founded 40 companies, with 5 of them going public.
For instance, the business unit “PlanetDAO”, which became independent in 2024, exemplifies this autonomy. “PlanetDAO” identifies abandoned historic properties, renovates them into vacation rentals, and operates them through a DAO. It has successfully co-created its business model with customers, quickly raised funds for its initial project, and is now in the process of securing three additional properties.
Similarly, a digital identity verification service “Trustdock”, which was carved out from Gaiax in 2017, has successfully raised 1.5 billion yen from external investors, achieving a level of growth that would have been difficult to attain as an in-house division. By adopting a capital policy that enables rapid responses to customer needs and strategic investments, the business has flourished. As a result, the company has been ranked No. 1 in eKYC adoption by Tokyo Shoko Research for three consecutive years since 2020.
An in-house experience sharing platform “Aini” co-produces its services together with its experience providers and customers. It also operates an alternative elementary and junior high school “Aini school” where learning curriculum is co-produced by its students and suggestions from adults are implemented based on a student vote.
Gaiax not only co-develops businesses with its customers but also invests in companies that embrace a similar approach by involving customers in business development, management, and operational rule-setting. For example, Gaiax investee "Roopt" is a DAO-operated share house where residents purchase NFTs as usage rights. Residents are allocated budgets and manage the property through collective decision-making by voting. This approach has led to increased occupancy through word of mouth, with residents maintaining and personalizing the property, fostering a stronger attachment to both the property and the community. Consequently, this enhances the occupancy rate and profitability of the property.
Organizational Culture
Gaiax's culture is shaped by its "free, flat, and open" philosophy, emphasizing entrepreneurship, autonomy, and transparency. This is reflected in several key practices:
Milestone Sessions: These quarterly sessions allow members to align their life plans with their business roles. Members set their own goals, work styles, and compensation, reflecting Gaiax's culture of self-determination and personal growth.
Division Profitability System: Each business division independently manages its finances, setting goals, operational strategies, and human resources. This management accounting system allows members to decide on investments and returns, fostering an entrepreneurial mindset across the team.
Transparency: To ensure informed decision-making, all meeting minutes, KPIs and financial data are shared internally, giving everyone access to the same information, regardless of department or position. This transparency allows for better proposals and initiatives aligned with the company’s overall strategy. Furthermore, up-to-date financial data, including budgets, results, and forecasts, are shared with all members. This transparency helps even new employees make optimal decisions with a comprehensive view of the company’s entire operations.
Gaiax's compensation mechanisms are also closely tied to its entrepreneurial culture:
Self-Determined Goals and Remuneration: Rather than being set by managers or customers, salaries are determined by members themselves based on their personal goals and achievements—a practice known as "evaluation-less." This self-evaluation process is central to Gaiax’s philosophy, which prioritizes members' happiness and potential. Each member decides their work content and remuneration every quarter during milestone sessions, aligning their compensation with self-set goals. During these sessions, managers take on a supportive role, acting more as therapists or life coaches by listening and guiding, rather than actively setting goals or evaluating performance.
In-House Side Jobs: This model allows employees to work on outsourced projects within the company. Gaiax’s core policy of “not interfering” enables employees to explore diverse opportunities while staying with Gaiax, fostering internal collaboration and knowledge sharing. Similar to the “in-house side job” model, Gaiax's original “free scouting” system allows departments to publicly recruit talent within the company. Employees can apply and transfer without their supervisor’s approval, fostering career growth while reducing recruitment costs.
Stock Options and Equity: Through the carve-out option system, employees in new carved-out ventures can acquire substantial equity, aligning their interests with the success of their businesses.
Gaiax has earned recognition for its outstanding work environment and growth opportunities. It was rated No. 1 in the internet industry for a growth environment for people in their 20s (Openwork survey 2023) and was selected as a Top 100 "Platinum" company in 2024 by Nihon Keizai Shimbun for its "ease of working" and "job satisfaction." Additionally, Gaiax received the "Best Workplace" ranking in the "D&I Award 2021" and won the top award "TEAM OF THE YEAR" at the Wantedly Awards 2023.
At Gaiax, all members independently decide where, when, and how to work, what to focus on, and whom to collaborate with. Each work style is tailored to individual life goals and aspirations, with many choosing to work remotely from various regions of Japan or even abroad. This creates challenges in maintaining strong team connections. To address this, Gaiax organizes training camps, monthly networking events and workation initiatives, and even encourages members to host each other in their homes to foster stronger interpersonal connections. Gaiax CEO Yuji Ueda has even transformed his own house into a share house where members can stay freely, receive mentorship from him, and work alongside their peers. He also regularly organizes indoor and outdoor activities for Gaiax members staying at the share house. Board game nights and marathons are among Gaiax favorite pastimes.
Gaiax continues to explore the balance between autonomy and cohesion, constantly evolving its organizational model to support its entrepreneurial spirit and business growth.
Conclusion
Gaiax represents a pioneering approach to business and organizational development, combining a strong entrepreneurial culture with innovative structural mechanisms. By empowering employees to pursue their passions and fostering an environment of openness and flexibility, Gaiax has created a unique ecosystem that continues to adapt and thrive in the ever-changing landscape of internet services. It proves, much like RenDanHeYi, that by nurturing an entrepreneurial spirit and curating an ecosystem that moves with the needs of customers, an organization unleashes value over and beyond for all stakeholders.
