MiamiCoin Raised Almost $25 million. Now What?

January 23, 2022 2:59 pm

Miami Mayor Francis Suarez recently announced Miami residents that have a digital wallet will be eligible to earn a Bitcoin dividend.

So far, Miami and New York City are the two cities in the United States that have begun fundraising for their respective crypto coins which are called MiamiCoin and NYCCoin respectively.

This is due to the way the tokens are built as both cities will be using a specific infrastructure provided by Citycoins which is a company that provides an open-source protocol to provide funding mechanisms built specifically for cities.

As a result, neither of the cities will actually own their coins directly though because the both the coins are actually built on the Stacks blockchain where Citycoins are the fungible tokens that are built on top of the blockchain.

CoinTelegraph reports:

According to a presentation given at the North American Bitcoin Conference 2022 in Miami, by CityCoins Community Lead Andre Serrano, MiamiCoin has raised $24.7 million worth of STX, while NYCCoin has raised $30.8 million that’s held in its city treasury.

In order for residents to acquire CityCoins, they must first purchase STX on an exchange like Okcoin or Binance. On Tuesday, Coinbase had planned to list STX for trading, but delayed the launch until further notice.

Stacks is the blockchain that seeks to make Bitcoin (BTC) programmable. CityCoins are fungible tokens built on the Stacks blockchain, and one CityCoins token contract is deployed per city. Serrano said:

“CityCoins have the potential to transform how people interact with their cities by aligning the incentives between local governments and city residents.”

What is unique about Citycoins is that each of them can be adapted to suit the traits that are unique to the city itself.

For example, coins in Los Angeles might provide a way for creators to contribute given that Los Angeles is well known for the Hollywood industry.

In order to create Citycoins, the city community has to mine the coin which then essentially rewards the miners with Citycoin tokens.

A business model is then setup where about 30% of the mining awards go to the city’s official wallet and 70% of the awards go to people who stake their Citycoins.

If the coin becomes more valuable in the future, there will be more miners that are willing to mine it. As a result, the treasury grows and more dividends will be able to be distributed to all the coin holders.

The use cases for these city coins can vary from being able to use them for public transportation, shopping at local businesses, or pay for NFTs.

The program could have the possibility as a result to generate revenue for the city which can be used to fund poverty or other societal issues.

WashingPost.com shares:

“When you think about the possibility of being able to run a government without the citizens having to pay taxes. That’s incredible,” Suarez said, adding that the partnership creates a “counternarrative” to the idea that city programs require raising taxes or “private sector philanthropy.”

CityCoins fits snugly into Suarez’s overall direction in Miami, as a business-friendly environment welcoming tech companies that want to benefit from warm weather and low state taxes.

The mayor says he is having discussions with mining companies about setting up operations near a South Florida power plant and ultimately wants to rebrand the city from a travel destination to a technology hub.

 

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