MiamiCoin has already raised $24.7 million… but who will benefit?

Cointelegraph recently spoke to Miami Mayor Francis Suarez following the announcement that Miami residents can earn a dividend in Bitcoin with a digital wallet.

The company creating the infrastructure for bitcoin dividends to reach citizens is CityCoins, an open-source protocol that provides funding mechanisms for cities.

Miami and New York City are the first two cities to start fundraising through MiamiCoin and NYCCoin. However, neither Miami nor New York City actually own MiamiCoin (MIA) or NYCCoin, rather their treasury wallets are filled with stacks (STX).

MiamiCoin has already raised $24.7 million… but who will benefit?
MiamiCoin has already raised $24.7 million… but who will benefit?

According to a presentation by CityCoins community leader Andre Serrano at the 2022 North American Bitcoin Conference in Miami, MiamiCoin has raised $24.7 million in STX, while NYCCoin has raised $30.8 million in your city’s public treasury remain.

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

Stacks is the blockchain trying to make Bitcoin (BTC) programmable. CityCoins are exchangeable tokens built on the Stacks blockchain and one CityCoins token contract is deployed per city. Serano said:

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

He added that CityCoins “can unlock a city’s cultural value while providing new opportunities for creators,” comparing how Los Angeles is known for Hollywood to Miami’s potential to be known as the US cryptocurrency capital if MiamiCoin is successful.

At a high level, it is the community that mines CityCoins to create CityCoins. CityCoins mining is done by sending STX tokens to the smart contract in a specific batch block. Miners are rewarded with new CityCoins tokens, unlike Bitcoin, there is no fixed cap for CityCoins.

According to Serrano, CityCoins provide a business model for a city by incentivizing its citizens to earn passive income: 30% of mining rewards are sent to the city’s reserve wallet, while 70% of mining rewards are distributed to people who decide to stake their coins CityCoins.

He explained that the more valuable MiamiCoin is, the more miners are willing to mine it, increasing the amount of STX blocks they are willing to contribute. As a more indirect result, treasury funds grow, and as blocks yield Bitcoin, that MiamiCoin mining revenue can then be distributed to coin holders as dividends.

CityCoins are programmable, which means smart contracts can be built around CityCoins tokens. Serrano offered some real-world use cases, including providing residents with discounts on public transit or shopping on-site, or even the ability to pay for NFTs. The tokens could also potentially be used to create local registers and title deeds.

It is not yet clear how the funds will be distributed in Miami. However, Serrano suggested that improving the public education system is a priority for the city. Once the city decides to claim STX and convert it to USD to fund a public project, residents could start receiving BTC dividends.

To get input from the public on how Miami should spend its funds, MiamiCoin hosts an app called MiamiVoice, which allows residents to propose and vote on ideas.

Similar Posts