Cointelegraph recently spoke with Francis Suarez, Miami Mayor, following the announcement that residents of Miami can now earn a Bitcoin dividend.
CityCoins is an open-source protocol providing fundraising mechanisms for cities that creates the infrastructure necessary to distribute Bitcoin dividends to citizens.
New York City and Miami are the first cities to start fundraising via NYCCoin r.
According to Andre Serrano (CityCoins Community Lead), MiamiCoin raised $24.7 million of STX while NYCCoin raised $30.8 million. The funds were held in the city’s treasury.
Residents must first buy STX on an exchange such as Okcoin or Binance in order to obtain CityCoins. Coinbase originally planned to launch STX trading on Tuesday. However, the delay was due to further notice.
As we prepare to allow memo tag support for STX withdraws on @Coinbase and @CoinbaseExch, we are delaying trading on STX. STX can be withdrawn to any STX wallet address without the need for memo tags. We will provide updates here & on https://t.co/NeRujHDZ4w https://t.co/bmlZBv7DAa
— Coinbase Assets (@CoinbaseAssets), January 19, 2022
Related: Stacks ecosystem is #1 Web3 project for Bitcoin
Stacks is a blockchain that aims to make Bitcoin (BTC), programmable. CityCoins, fungible tokens that are built on the Stacks Blockchain, can be deployed in one CityCoins token contract per city. Serrano said:
“CityCoins can transform the way people interact with their cities through aligning incentives between city residents and local governments.”
He said that CityCoins could “unlock a community’s cultural value and provide new opportunities for creators,” in a comparison to how Los Angeles is known to be for Hollywood. Miami has the potential to become the crypto capital of America if MiamiCoin succeeds.
It’s the community who mines CityCoins at a high-level. By forwarding STX tokens to the smart contract within a specific Stacks block, you can mine CityCoins. The CityCoins tokens are then awarded to miners. CityCoins have no hard cap, unlike Bitcoin.
Serrano says CityCoins give a city an incentive to make passive income. 30% of mining awards are sent to the custodial reserve wallet and 70% go to those who stake their CityCoins.
He explained that the greater the value of MiamiCoin, the more miners will be willing to mine it. This increases their willingness to contribute STX blocks. Indirectly, this means that the treasury grows and that Stacks yield Bitcoin. The proceeds from MiamiCoin mining can then go to coin holders as dividends.
Related: Reelected Miami mayor will take part in Bitcoin retirement savings of 401k
CityCoins can be programmed, which means that smart contracts can also be built around CityCoins tokens. Serrano presented some examples of real-world use cases, including discounts for residents who shop locally or for public transport. Serrano also mentioned the possibility of allowing them to purchase NFTs. Potentially tokens could be used to create local registries or property deeds.
It is still unclear how funds will be distributed in Miami. Serrano said, however that improving the public education system is a top priority for the city. Residents might begin to receive BTC dividends once the city converts STX to USD in order to finance a public project.
MiamiCoin has an app called MiamiVoice, which allows residents to submit ideas and vote.
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