The work aims to use design methods to empower the dynamic inheritance of the Grand Canal cultural genes, to promote the cultural connotation of the Grand Canal to keep up with the times, and boost the continuous continuation of the Grand Canal culture in today's era. With Yangliuqing New Year Painting as an example, the categories of cultural genes were sorted out and the logic of cultural gene design was constructed. Based on the characteristics of different cultural genes, three principles were proposed for the design and application of cultural gene symbols, and the extraction methods and application processes of cultural genes were practiced. The proposed cultural gene extraction method was used to extract the genetic symbols of the Yangliuqing New Year Painting "Lian Nian You Yu". Based on the principles of balanced selection, advancing with the times, and multi-dimensional infiltration, it was translated and transformed, resulting in a packaging design scheme with modern characteristics. The application of cultural gene theory can effectively achieve the extraction and design application of cultural genes in the Grand Canal. The proposed cultural gene extraction method and gene symbol design application principles provide reference for the design and development of other cultural genes in the Grand Canal.