On June 2, 2021, Miami Mayor Francis Suarez tweeted that “MiamiCoin” would be the first “CityCoin” ever to be launched, representing Miami’s very personal cryptocurrency. Quick ahead about two months later and the anticipation surrounding the discharge of MiamiCoin has been on the rise. 

Initially, it could seem as if the Magic Metropolis’s digital foreign money will perform identical to different cryptocurrencies that may be purchased, offered and traded to revenue each buyers and the town of Miami. But, “MiamiCoin” is kind of distinctive from different digital currencies.

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A developer platform for cities

Patrick Stanley, founder and CEO of CityCoins — the venture behind MiamiCoin — instructed Cointelegraph that MiamiCoin (MIA) can really be thought of as a developer platform for cities. “MiamiCoin, being the first-ever CityCoin, is fully programmable. Due to this fact, functions can simply be constructed on prime of it,” mentioned Stanley.

Particularly talking, CityCoins is a venture constructed on Stacks, which is an open-source community of decentralized functions (DApps) and good contracts constructed adjoining to the Bitcoin blockchain. Which means MiamiCoin, which was formally activated on August 3, may very well be thought of as a DApp powered by the Stacks community — a wise contract platform constructed on the Bitcoin community. As such, Stanley defined that MiamiCoin can’t be pre-mined or purchased in the meanwhile:

“The neighborhood launched MiamiCoin, so everybody has to mine $MIA pretty and equally. This represents open membership mining, which is identical idea as when Satoshi launched Bitcoin. Mining formally started on August 4.”

Relating to the tokenomics behind MiamiCoin, Stanley talked about that in the course of the first two weeks of mining MIA, the bottom foreign money getting used to mine CityCoin — which is Stacks’ STX token — will go instantly right into a reserved pockets claimed by the town of Miami. After two weeks, 30% of all these funds will stay within the reserved pockets, whereas 70% will likely be allotted to the miners.

Stanley additional shared that as a result of CityCoins is powered by Stacks, customers will be capable to swap between MIA and Bitcoin (BTC) when performing a Bitcoin transaction. “We take into account Bitcoin as one thing that may energy many different functions, although it’s at present underutilized,” commented Stanley. To his level, most DApps are at present constructed on Ethereum, which noticed quite a few elevated exercise final 12 months.

“Group cash” enabled by crypto

An essential level to notice right here is that 30% of the mined MIA will likely be allotted to the town of Miami. In response to an article published by The Miami Herald final month, metropolis officers talked about that MiamiCoin may very well be used to construct roads, parks and different public infrastructures.

Stanley famous that the town of Miami leveraging MIA for civic engagement is extraordinarily essential, given the neighborhood side behind CityCoins. In response to Stanley, CityCoins are in a small half a coin for geographies, which means those that worth sure areas can present their help by holding digital currencies created for various cities. Stanley additional remarked that over time, CityCoins will overflow to different communities throughout varied areas.

Whereas futuristic, this idea was a part of the rationale why the cryptocurrency change Okcoin pledged to checklist MIA on its platform. Haider Rafique, chief advertising and marketing officer at Okcoin, instructed Cointelegraph that there have been a number of traditionally compelling tasks and groups which have taken a very long time to reach in the US. Rafique believes that CityCoins might probably put collectively an ecosystem for various functions:

“By opening these markets, we deliver buyers in who should buy these property after which additional discover these ecosystems. For instance, Stacks has varied decentralized finance functions to work together with. We see CityCoins as having that very same sort of utility.”

Furthermore, Rafique considers MiamiCoin to reveal a brand new approach for folks to leverage cryptocurrency to take part in civic engagement: “CityCoins isn’t just an incentive for retail buyers, but in addition for governing our bodies. Cryptocurrency shouldn’t simply be about hypothesis, but in addition about real-world utilization.” Rafique added that MIA will grow to be tradable on Okcoin afterward, as soon as liquidity is created from mining.

Will the idea be broadly adopted?

Though it’s notable that Miami is the primary metropolis to launch a CityCoins token, considerations round adoption and laws stay. Tim Shields, a associate at Kelley Kronenberg’s Fort Lauderdale regulation workplace, instructed Cointelegraph that he doesn’t assume MiamiCoin will end in widespread adoption: “The technological scheme of how MiamiCoin works is pretty advanced and it’ll transcend the scope of most individuals who already maintain cryptocurrency.”

Whereas this can be, Shields does imagine that MIA will assist additional develop Miami’s rising tech ecosystem. In response to Shields, MiamiCoin is one more effort that highlights Miami’s openness and pleasant stance towards cryptocurrency. Shields additional remarked that Mayor Suarez has clearly been engaged on his objective of creating Miami the Bitcoin capital of the world, and if nothing else, MiamiCoin reveals {that a} metropolis mayor can entice innovation within the blockchain area.

Associated: Miami stakes the claim to become the world’s Bitcoin and crypto capital

Relating to laws, Shields defined that this may doubtless be difficult, noting that he’s unsure how the town of Miami will maintain MIA. “This can be held as property after which transformed to money,” he remarked.

Ben Bartlett, Berkeley Metropolis Council member and crypto lawyer, instructed Cointelegraph that the dangers with MiamiCoin look like in assessing liquidity for the tokens. Bartlett additionally talked about friction when leveraging MiamiCoin: “Atypical folks don’t have the bandwidth to take care of the complexities of wallets and seeing out the appropriate change. There could also be some regulatory points that have to be fastidiously thought of.”

Bartlett defined that is particularly the case in gentle of recent proposals laid out by the brand new digital asset infrastructure invoice that goals to expand the definition of brokers to incorporate miners and different linchpins of the crypto ecosystem.

Considerations apart, Bartlett stays hopeful that the town of Miami can resolve these points by adopting an agile strategy, guaranteeing common participation whereas avoiding regulatory pitfalls. “I’m very excited and grateful for the mayor of Miami’s daring management. MiamiCoin represents the following stage of governance and shared prosperity,” mentioned Bartlett.