Vitalik Buterin shares a positive outlook on the creation of crypto cities

In a post on Sunday, the co-founder of Ethereum (ETH) Vitalik Buterin, expressed his support for using the phenomenon of cryptocurrencies to serve the interests of local governments and their citizens.

Specifically, Buterin spoke of the formation of city tokens and decentralized autonomous organizations, the so-called DAOs. DAOs are autonomous organizations in which users write and enforce rules themselves, such as: B. Voting on protocol changes based on the number of underlying tokens they have.

The idea is still in its infancy. Nevertheless, Buterin explained that city tokens should complete at least three of the following five objectives

  1. Act as a sustainable source of income for the state.
  2. Facilitate economic cooperation between residents and the city.
  3. Promote savings and wealth creation for all concerned.
  4. Promote social initiatives across the city.
  5. Reduce wealth inequality.
Vitalik Buterin shares a positive outlook on the creation of crypto cities
Vitalik Buterin shares a positive outlook on the creation of crypto cities

Regarding the last point, Buterin suggested that the vast majority of newly issued city tokens go to residents as a form of universal basic income. Ethereum co-founder criticized current economic mechanisms that favor “the rich over the poor” –

The most famous cryptocurrency project described in the blog post is City coins, which is based on the blockchain Stack (STX). Stacks is a layer-one solution that enables smart contracts on the r. enablesed Bitcoin (BTC). The protocol allocates 30% of the BTC mining revenue sent to STX holders to a wallet reserved for each city.

Theoretical uses include discounts and benefits provided to CityCoin holders by local businesses. The group has already launched a type of city token, MiamiCoin. The Mayor of Miami, Francis Su¡rez, has publicly endorsed her and stated that she “Revolutionize the way governments are funded.”

In addition to the socio-economic impact, Buterin also praised City Token’s potential for improving existing governance:

“21st century digital democracy could do a much better job than 20’s democracy by blocking the scheduling and approval of hearings through square voting and real-time online funding. And of course, if you’re using blockchains to secure voting, it seems a lot more convenient to start with crazy new types of voting. It is safe and politically feasible to readjust existing voting systems. “

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