MiamiCoin: Starting Another Phase In Cryptocurrency?

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(Edited)

We are always seeing interesting evolutions in the cryptocurrency industry. As time passes we are finding more tokens generated that open up a host of opportunities. It seems a lot of different entities are getting into the game.

Ultimately, it could make for some strange battles down the road.

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Something that didn't get a lot of publicity was the City of Miami, led by Mayor Suarez, starting their own token. The MiamiCoin was set to go live on August 4th, a step that is moving the city into the cryptocurrency arena.

It seems the City found out about the benefits of mining and the potential of DeFi. Ironic, it is no different than what many individuals are doing.

MiamiCoin

The token will use a combination of mining and staking to produce returns. This will open up a potential return for both investors and the City. This is, of course, at this point, more of a proof-of-concept than anything else. However, if it is found to be successful, we can expect other government entities to get involved.

How it works is as follows:

The first stage is the mining. According to the CityCoins:

CityCoins are mined by forwarding STX (the Stacks token) to the CityCoins smart contract on the Stacks protocol. The winning miner can claim their rewarded CityCoins from their Stacks address at any time.

30% of the STX that miners forward to the Stacks protocol is sent directly to a wallet that is reserved for each city that is part of the CityCoins ecosystem. The mayor of a city may elect at any time to #pickupthebag and accept the reserved wallet to access the treasury for use by the city.

The Stacks Protocol is what allows for smart contract capability on Bitcoin. Here is where investors in the $MIA token can make the return.

When staking the token, the remaining 70% not sent to the City is used for the token holders. It gets a bit tricky as there are a few layers to this.

From the same website:

CityCoins generate yield for holders in STX and BTC through a function on the Stacks protocol known as Stacking.

The remaining 70% of the STX that miners forward to the Stacks protocol is distributed to holders of CityCoins who choose to stack their tokens. Stacking requires holders to lock their CityCoins for determined “reward cycles.” Stacking CityCoins yields STX rewards. STX rewards can further be stacked on Stacks to yield BTC rewards.

As we can see, the first phase of stacking nets the token holders more STX. Once this is received, that can be further stacked for Bitcoin.

Hence we can see how the system is tying into a decentralized blockchain and not run exclusively on a centralized system.

The City obviously can benefit from the steady flow of tokens being mined. As the ecosystem grows via providing more use cases for the token, the value should increase. Hence, the percentage the City gets of what is mined could see a steady increase over time.

It could also opt to stake its payout and generate a return from which it could fund different projects. This would also help the City to amass some Bitcoin to add to its Treasury if that is the desired result.

The payouts can be pretty good based upon the anticipated return.

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Here is where the City can kick off a network effect. If it ties the token into services, it will give people a reason to utilize it. For example, the City could have the token tied to its mass transit system. In this regard, a discount could be offer to riders as a way to incentivize the use of the $MIA. Property taxes and other City fees could be paid using the token.

This takes the Miami economy to a completely different level.

Governments Being Tokenized

We can see this is an avenue that municipalities and other government entities can pursue to raise money and provide better financial services to their citizens.

If this proof-of-concept works, it is likely that cities all over the world will follow Miami's lead here. It could also extend up to the state or provincial level. We can guess that is the goal of the CityCoins project.

As governments are tokenized, it could start a bit of a conflict between the national level that has money creation capabilities and these entities. We know governments do not like competition and control of the monetary system is a big one. This is bringing in a new dimension.

While local governments, at least in the United States, were always allowed to have local currencies, few did since it was a major hassle to print up money. In a digital realm, this is something completely different. As we are seeing, the services to set this up easily are being put into place.

Hence we could see more transactions gravitate away from national currencies to these local ones. While the $MIA token is not going to suddenly collapse the USD, if most municipalities follow suit, that is a lot of transactions that could be shifted.

Another aspect to this is similar to what we discuss with other cryptocurrencies. We are seeing Miami tokenize its community, in this instance the citizens of that City. From here, the community is able to develop businesses around this. Therefore, we could see a lot of development taking place around this token, creating even further use cases.

Naturally, this will only advance the network effect even more.

Are City Tokens going to be another phase in cryptocurrency? We will have to see how this first project works out. There is great likelihood others are watching closely to see how it goes. If there is any type of initial success, it would not be surprising to see other cities jump on board with their own.

This looks like it is something that could start to take off around the world.


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41 comments
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Wow that's pretty freaking cool.. I'll have to read this in more detail a bit later.. did you see that there is a frontend on hive, for the city of San Diego California?
Is the stacks (STX) a blockchain of its own?

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No, not a blockchain. A sidechain.

According to their own description,

Stacks is an open-source network of decentralized apps and smart contracts built on Bitcoin. Stacks unleashes Bitcoin’s full potential as a programmable base layer.

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Bang, I did it again... I just rehived your post!
Week 68 of my contest just started...you can now check the winners of the previous week!
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we can see that cryptocurrency has growing globally, el Salvador has made Bitcoin a legal tender, not only that alot of clubs has been creating their own coin, we have:

Barcelona fan token.

juventus fan token .

as roma token

we have alot like that and also Argentina has recently launched the fan token, so cryptocurrency is on another level, if you just joined you are still early.


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Yeah I think we will continue to see an acceleration of this. It is not going to slow down. We just need to keep active and putting together a lot of content.

More people will follow.

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I feel like this would have been a cool option for El Salvador. I wonder why their President didn't think of it? Is it too risky?

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There is a difference between a country and a city. The country already has money printing capabilities although not El Salvador since it uses the USD.

So Bitcoin seems like a viable option to bring in outside capital.

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(Edited)

Nice find. I also read that the holders of the STX tokens can also decide to vote on what the government will do with the treasury in terms of infrastructural development of the city in such a way that it’ll help the economy. Very cool stuff. This is a government that is willing to be open in its monetary affairs at least to some extent. Corrupt government that like to do things behind closed doors will find this hard to accept. We will see how it will pan out. This is a win for MIAMI and I’m loving it.

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Mayor Suarez certainly is very ambitious with his dive into cryptocurrency.

We will see how it works out for the City. If successful, we will see this happening all over the place.

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The future is already here.

A great decision has been made with the $MIA token.

I believe with time we'll have others joining in on the fun.
!PIZZA

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Are you gonna buy some?
From what I know you live in Florida.

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I live in the state but not in Miami.

No I am not going to buy any. I can get 10% return simply by putting my HBD into savings. LOL

So there are other options for those of us who know where to look.

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True. Nice seeing though when authorities are turning bullish towards crypto.

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It is that split again.

Some see an opportunity so they are bullish. Others like those at the national level see it as a threat so they are trying to stop it.

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Are City Tokens going to be another phase in cryptocurrency?

This is a beginning of the wide cryptocurrency mass adoption. After El Salvador legalized bitcoin, there will be more countries that will use cryptocurrency as the legal tender


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I guess governments all over will be on the lookout for how MiamiCoin would definitely fare. I believe that even if it didn't fare so well, it's laid down the how vital crypto can be to real-time governance.

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I would surmise it will be watched closely. The big key is how much money rolls in. If the City raises a ton of capital, then other mayors will not be able to resist.

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Well seems the money will be a huge factor that will play a huge role. There's a plausibility for this thing to generate lots of money.

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Just think of the returns that are being generated right now and the TVL. Could this be something that gets large too?

What if this project has $100 million TVL? That doesnt seem outlandish and would provide a nice cash flow to the token holders.

It seems like a win-win situation. I am not sure what the downside is especially if the City works to give the token utility.

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sometime i wonder how many crypto currencies are now available. and the ones that government are ready to recognized as legal tender. for me, it is not about creating different crypto currencies is about making them general tender that will be generally acceptable as a means of exchange


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no government will ever make something valuable. We dont need anyone to tell us hive gold silver or ethereum are valuable. we will always accept bitcoin no matter where the price goes.

no one will ever turn down bitcoin as a way to pay someone for a job for example.

you wont care if BTC goes to $100, if someone offers you $200 a day or 2 BTC a day to do work, youd do it, oh wow how you woudl do uit

imagine 2 BTC a day, i dont care if they are $200, NO WAY they woudl stay that low

THERE IS ALWAYS SOMEONE WAITING to buy btc eth and etc etc etc

hive will be at the top of the list just as STEEM was #3 in 2016 summer remember? on coinmarketcap/ Steem was under btc or ripple or eth or whatever

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We appreciate your time and enthusiasm for promoting Hive!

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Being the first they have the head start on the others especially in the learning curve. MIA is an ominous name for a token lol.

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THis is a good start. We'll have to see if it's successful but it's definitely a step in the right direction and it could spark similar initiatives in other cities as well

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Its @telosmiami and @telosnetwork and the telos economic security blanket safety net with mayor of miami and starlink to aorfrop hive snr eos and telos over cuba and venezuela

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I hope to see different country crypto soon in crypto market

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I wonder if CityCoin will support sub-communities within cities...

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I was wondering when this would happen. I thought it would be on the state level though. They're printing money like crazy and not even the boldest states seem to be hedging against the collapse of the dollar or inflation in general.

Like you inferred, it would be a great way to fight against fraud. Although I'm worried about the privacy from all the financials being broadcasted to the blockchain.

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