Miami Mayor Francis Suarez continues to emphasize that the city is the crypto capital of the world. The reasons for this are the installation of companies such as eToro and Blockchain.com in Miami, the relocation of the Bitcoin conference to the city and also the introduction of MiamiCoin as one of the four tokens of the project bearing the name: CityCoins. But what do these parts actually do?
City Coin number 1: What is MiamiCoin?
MiamiCoin ($MIA) is the city’s first coin on the market and has been tradable since June 2021. MIA is a token based on the Stacks protocol.
MiamiCoin and other City Coins can be mined or purchased by people who want to support their favorite city while earning crypto returns. City Coins provide an ongoing source of crypto revenue for the city. Similar to taxpayers’ money, proceeds from the project are in turn intended to benefit the citizens of the city in the form of new public spaces, infrastructure, municipal events and recruitment of startups. If MiamiCoin’s growth continues, say proponents of the technology, it would lead to a future where the entire city budget is covered by MIA. Miami would then be the first American metropolis to do without taxes entirely.
In addition to MiamiCoin, there are already coins for the cities of New York and Austin, Texas, as more cities recognize the potential of the technology for themselves. If you would like a City Coin for your favorite US city, you can vote here.
How exactly do City Coins work?
The project CityCoins is powered by the Stacks protocol, which allows Smart Contacts to work on the Bitcoin network for the first time. Everything works like this:
By routing STX tokens into the smart contract of a specific block in the Stacks blockchain, miners can mine City Coins. The STX token is the native token of the Stacks network. Miners compete for City Coins with submitted STX tokens. There is only one winner per block who can then claim the City Coin reward. All STX submitted for mining will then be redistributed:
70 percent mining rewards are paid to people who stake their City Coins.
30 percent go to the wallet set up in the respective city. This is where the money is collected, which will later be used for the expansion and improvement of the city. The city can convert their STX from the wallet to US dollars whenever they want or they can stake the STX tokens to earn BTC.
The most popular site for mining or staking City Coins is minecitycoins.com.
CityCoins planned in 15 cities
Fifteen other cities are expected to receive CityCoins, including three in the United States and 12 more in Mexico City, Rio de Janeiro, Amsterdam, Lisbon, Berlin, Lagos, Cairo, Dubai, Singapore, Seoul, Tokyo and Sydney.
City Coins: use for cities
City coins can be held or staked after successful mining to earn more STX. Bitcoin can also be earned by staking STX. City coins can also be borrowed and lent.
The Stacks network is open source and gives developers a new way to build apps and experiment with innovative use cases. Open source projects that benefit the city are especially welcome here.
The FAQ on the CityCoins website states:
The CityCoins community will develop applications using the tokens for rewards, local benefits, access control (to digital or physical spaces), commerce, loans, execution of smart contracts and much more.
CityCoins Website FAQs
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