On a sweltering Last August Tuesday, a new cryptocurrency was born. Known as Miamicoin, it was styled as a way for crypto-savvy to support Magic City and could earn some cryptocurrency in the process. A tongue-in-cheek press release states that MiamiCoins is “a programmable city-based token that unlocks a new community-driven revenue stream for local governments while bringing collaborative technology to its citizens and stakeholders’ ecosystems.”
In fact, you can do two things with MiamiCoin: mine it and stack it. Cryptocurrency, created by Delaware-registered business Citicoin, has a circular life cycle. To get some, you need to buy another cryptocurrency token called Stacks — currently priced at around $ 1 per unit and use it to bid for MiamiCoin. Only one lucky bidder or “Manikar” Miamicoin can get every 10 minutes; The losers get nothing but the feeling of losing their stack. Anyone who wins MiamiCoins will be able to sell on Okcoin at $ 0.0015 each until Tuesday, the only exchange that accepts them. Or they can park (or “stack” in crypto language to get periodic rewards on stack tokens). Bidding (and losing) for these stack rewards for MiamiCoins comes directly from more people’s wallets. Stacks, in turn, can be stacked to earn bitcoin rewards.
Michael E. A visiting researcher at Bloomberg Cornell University’s Urban Tech Hub, who has served on the board of the Massachusetts local currency enterprise Berkshire, compared Miamicoin to a raffle. “You keep a certain type of asset, and you bring out something else,” he says. “If you win the raffle, you will be rewarded with a coin that has no use.”
MiamiCoins have no utility in their hometown: you can’t pay taxes, buy a bus ticket, or rent a flat in Miami with them, even if the proponents say that a use case will be created over time. This does not mean that Miamicoin has been randomly named, as many other currencies have been opportunistically named after dog breeds or viral TV series. About 70 percent of all stacks spent by miners for MiamiCoin go to stackers, with the remaining 30 percent going to a cryptocurrency wallet set aside by the city government for use. Citicoin frames as a way to show support for the city and help finance valuable projects.
Until April 26, Miami has more than 13 million stack in its wallet. “A Citicoin is automatically generating revenue that can go back to the city,” said Patrick Stanley, a Los Angeles-based technician who was part of Stax’s core team until 2020 and is now Citicoin’s chief representative. The non-profit organization is supported by the crypto-mining community Syvita Guild, Z1, DoubleUp, Freehold and Stacks Community.
Stanley says MiamiCoin’s mining method is no different from other standard methods of creating cryptocurrencies, where different parties fight each other to maintain a decentralized system, committing different resources to the effort. “Just like in Bitcoin [mining] You spend electricity, you spend cryptocurrency with Citicoin. ”
Cryptocurrency projects rely on efficient leverage of incentives. A popular strategy is to use celebrity approvals to encourage people to join the new cryptocurrency. In a way, CityCoins is doing the same thing: it’s not a government-led project for the city of Miami, but since its launch in June 2021, it has made money. Praise from The city’s crypto-piled mayor, Francis Suarez, tweeted about the first currency being a “must” in Miami. A. The Washington Post In an interview in September, Suarez said the scheme could make it possible to “run the government without paying taxes to citizens”. Misleadingly, Suarez later told Koindesk that Miami Coin could one day be used to pay taxes in the city. Following a vote by city commissioners, the Miami government in February cashed $ 5.25 million in cash from its wallet – classified as a grant from Citycoin – to be set aside in a rental assistance fund.