Stacks blockchain allows cities to develop their own cryptocurrencies — and Miami wants to be a crypto capital.
CityCoins empower contributions to cities through blockchain technology. Citizens who want to support their city and have a say over the growing crypto coin treasury can mine or stack their coins. MiamiCoin was launched in August 2021 and has been providing Miami with a constant stream of revenue in cryptocurrency.
- Activation: Just like STX and BTC, CityCoins are mined. Mining only starts when 20 independent wallets have signaled activation after contract deployment.
- Mining: To mine CityCoins, miners have to deposit STX into a smart contract on the Stacks blockchain. 30% of mined coins are reserved for the city.
- Programming: CityCoins introduce utility to developers, entrepreneurs, residents and others thanks to the Clarity programming language.
- Stacking: You can stack CityCoins if you stake them for a selected reward cycle. 70% of mined coins are reserved for stackers.
How Does MiamiCoin Work?
MiamiCoin needs the support of a city’s residents in order to work.
At least 20 independent wallets have to signal activation after the contract's deployment. In other words, after the smart contract is set up, 20 users have to register with their wallets to indicate a minimum level of interest. This kickstarts a 24-hour countdown, after which MiamiCoin can be mined following a straightforward three-step process.
Since there are no hardware requirements and the protocol is open-source, anyone can build a website interacting with the CityCoins smart contract. Miners can participate only once per block and STX committed for mining MiamiCoin are not returned, but distributed to stackers and the city's custodial wallet. Only one miner per block can claim the reward
- The first 10,000 Stacks blocks issue 250,000 CityCoins over approximately three months.
- The next 200,000 blocks issue 100,000 coins over approximately four years (minus a bonus period for early miners).
- The next 210,000 blocks issue 50,000 coins over approximately four years.
- The next 210,000 blocks issue 25,000 coins over approximately four years.
- The next 210,000 blocks issue 12,500 coins over approximately four years.
- The next 210,000 blocks issue 6,250 coins over approximately four years.
- The next 210,000 blocks issue 3,125 coins over approximately four years.
In this way, MiamiCoin follows a similar halving mechanism to Bitcoin and Stacks.
What Makes MiamiCoin Unique?
There are currently three CityCoins on the market: MiamiCoin, Austin Coin and New York City Coin.
As such, welcoming MiamiCoin as an additional revenue stream and a way of raising the city's profile as a crypto mecca has been a no-brainer.
The more MIA is mined, the more goes to the city's wallet. Any city with a coin can use its treasury at its discretion and is not bound in any legal way to commit the CityCoin rewards to what stackers deem the most relevant way of spending it. Put differently, there is no way stackers can sue the City of Miami if it decides to spend the money irresponsibly — MiamiCoin does not make the city a DAO. However, MiamiCoin could become a key tool for attracting donations to the city and, as such, fiscally responsible spending is socially incentivized.
For example, Miami's citizens and businesses may invest in MIA and hold to incentivize the city to also hold and drive up its price. Alternatively, they may suggest that the city invests the funds in infrastructure and services. If revenues are used to the citizens' benefit, this could create a virtuous circle of growth.
Moreover, holders have an incentive to mine and use MiamiCoin, as they can earn BTC rewards from the protocol with increasing usage. They can create apps and solve previously unsolvable problems thanks to blockchain technology. For instance, MiamiCoin makes it possible to gate access to digital or physical spaces, create financial applications for trading and lending, and use smart contracts in various other ways.
MiamiCoin in the Media
Pouyan Esmaeil Zadeh, an assistant professor at Florida International University, said:
"Any person in the world ... if they want to contribute to Miami, if they like Miami, that person can buy the MiamiCoin."
In November, Miami Mayor Francis Suarez announced that the city had earned a yield of over $21 million. He also noted that if yields were to continue at that rate, they could entirely cover the city's tax needs.
The Miami Herald reported that the city's wallet declined from $29 million in value to $13 million. Suarez did not specify what the profits would be used for, but said the city was considering creating affordable housing, city services, or lower taxes.