MiamiCoin (MIA), the coin of the city of Miami, is expected to be launched today.
The initiative is by CityCoins, of Patrick Stanley, and is the first of its kind launched on the market. The aim is to support the city, and reward holders through the Stacks protocol.
However, this is not a partnership, as the initiative is by CityCoins alone.
How will MiamiCoin work
MiamiCoin is powered by Stacks, a protocol that enables smart contracts on the Bitcoin network, and anyone can compete to mine MIA tokens by submitting their STX tokens through the protocol.
30% of the submitted STX will be directed to a wallet reserved for the City of Miami, while the remaining 70% can be stacked to farm STX and BTC.
CityCoins are mined by submitting STX into a CityCoins smart contract on the Stacks protocol, and the prize winner for each block mined is chosen at random in proportion to the STX invested. Once the CityCoins have been received, the miner can stack them on the Stacks protocol, and get STX as a reward.
Right now the estimated APY in STX is 100%, while in BTC it is 10%.
Recently the mayor of Miami, Francis Suarez, commented on the initiative saying:
“The City of Miami could end up earning millions of dollars as a result of the popularity of MiamiCoin, because obviously Miami has now become, and we’ve talked about this many times on your program, the bitcoin capitol of the world; and we’re focusing on differentiating our economy by creating the new wave of technological products that will incentivize people to move to Miami and be part of our tech ecosystem”.
In fact, the city of Miami will be able to choose to use the STX tokens it receives at will, for example to create new public spaces, infrastructure improvements, host city events, recruit startups or more, according to the CityCoins website.
Miami was chosen as the first city for this experiment because in the last year it has emerged as one of the main cities in the US crypto scene. It is attracting many crypto operators, thanks also to a supportive government and a culture defined by constant evolution.
Nevertheless, this is an experimental project, and to date it is not yet known whether it will actually generate revenue for the city.