On June 2, 2021, the Mayor of Miami, Francis Suarez Tweet “MiamiCoin” will be the first “CityCoin” ever launched, representing Miami’s own cryptocurrency. Fast forward about two months later, and expectations surrounding the release of MiamiCoin have been rising.
Initially, Magic City’s digital currency seems to be like other cryptocurrencies, which can be bought, sold and traded to bring benefits to investors and the city of Miami. However, “MiamiCoin” is very unique from other digital currencies.
City Developer Platform
Patrick Stanley, the founder and CEO of CityCoins, the project behind Miami Coin, told Cointelegraph that Miami Coin (MIA) can actually be regarded as a developer platform for the city. “As the first CityCoin ever, MiamiCoin is fully programmable. Therefore, applications can be easily built on top of it,” Stanley said.
Specifically, CityCoins is a project built on Stacks, which is an open source network of decentralized applications (DApps) and smart contracts adjacent to the Bitcoin blockchain. This means that MiamiCoin, which was officially activated on August 3, can be regarded as a DApp supported by the Stacks network-a smart contract platform built on the Bitcoin network. Therefore, Stanley explained that it is currently not possible to pre-mine or purchase MiamiCoin:
“The community launched MiamiCoin, so everyone must mine $MIA fairly and equally. This represents open membership mining, which is the same concept as when Satoshi Nakamoto launched Bitcoin. Mining officially started on August 4.”
Regarding the token economics behind MiamiCoin, Stanley mentioned that in the first two weeks of MIA, the base currency used to mine CityCoin-Stacks STX tokens-will go directly to the reserved wallet claimed by the City of Miami. After two weeks, 30% of all these funds will be kept in reserved wallets, and 70% will be allocated to miners.
Stanley further shared that since CityCoins are supported by Stacks, users will be able to exchange between MIA and Bitcoin (Bitcoin) When conducting Bitcoin transactions. “We think Bitcoin can power many other applications, although it is currently underutilized,” Stanley commented. As far as he is concerned, most DApps are currently built on Ethereum, and there has been an increase in Ethereum activity last year.
Encryption-enabled “community currency”
The important thing to note here is that 30% of the mined MIA will be allocated to the City of Miami.According to an article Publish Miami herald Last month, city officials mentioned that Miami coins can be used to build roads, parks and other public infrastructure.
Stanley pointed out that considering the community behind CityCoins, it is very important for the City of Miami to use MIA for civic engagement. According to Stanley, CityCoins are geographic coins to a very small extent, which means that those who value certain regions can show their support by holding digital currencies created for different cities. Stanley further stated that over time, CityCoins will spill over to other communities in various regions.
Although futuristic, this concept is part of the reason why the cryptocurrency exchange Okcoin promised to list MIA on its platform. Haider Rafique, chief marketing officer of Okcoin, told Cointelegraph that some historically high-profile projects and teams took a long time to reach the United States. Rafique believes that CityCoins can combine an ecosystem for different applications:
“By opening up these markets, we attract investors who can purchase these assets, and then further explore these ecosystems. For example, Stacks has various decentralized financial applications that can interact with it. We believe that CityCoins have the same type of utility .”
In addition, Rafique believes that MiamiCoin demonstrates a new way for people to use cryptocurrency to participate in citizen participation: “CityCoins is not only an incentive for retail investors, but also an incentive for management agencies. Cryptocurrency should not be just speculation, but also a real-world use. “Rafique added that once mining generates liquidity, MIA will trade on Okcoin later.
Will this concept be widely adopted?
Although it is worth noting that Miami was the first city to launch CityCoins tokens, there are still concerns about adoption and regulation. Tim Shields, a partner at Kelley Kronenberg’s Fort Lauderdale law firm, told Cointelegraph that he believes that MiamiCoin will not be widely adopted: “The technical solution for the working principle of MiamiCoin is quite complicated and it will be beyond the reach of most people. Already hold cryptocurrency. .”
Although this may be the case, Shields does believe that MIA will help further develop Miami’s evolving technology ecosystem. According to Shields, MiamiCoin is another effort that highlights Miami’s open and friendly stance on cryptocurrencies. Shields further commented that Mayor Suarez has clearly been working on the goal of making Miami the Bitcoin capital of the world. If nothing else, MiamiCoin shows that the city mayor can attract innovation in the blockchain field.
Regarding the regulations, Shields explained that this can be challenging and pointed out that he is not sure how the City of Miami will host the MIA. “This can be held as property and then converted into cash,” he said.
Berkeley City Council member and crypto lawyer Ben Bartlett told Cointelegraph that the risk of MiamiCoin seems to lie in assessing the liquidity of the token. Bartlett also mentioned the friction when using MiamiCoin: “The average person does not have enough bandwidth to deal with the complexity of the wallet and find the right exchange. There may be some regulatory issues that need to be carefully considered.”
Bartlett explained that in view of the new digital asset infrastructure bill, the new proposal is aimed at Expanding the definition of broker Including miners and other keys to the crypto ecosystem.
Regardless of concerns, Bartlett still hopes that the City of Miami can solve these problems by adopting agile methods, ensuring public participation, and avoiding regulatory traps. “I am very excited and grateful for the bold leadership of the Mayor of Miami. MiamiCoin represents a higher level of governance and shared prosperity,” Bartlett said.