In a blog post published on Sunday, Ethereum (ETH) co-founder Vitalik Buterin expressed support for using the cryptocurrency phenomenon for the benefit of local authorities and their citizens.
Specifically, Buterin discussed the formation of city codes and decentralized autonomous organizations known as DAOs. DAOs are autonomous organizations where users themselves create and enforce rules, such as voting on protocol changes based on the number of base tokens they own.
The idea is still in its infancy. Buterin, however, argued that city symbols must meet at least three of the following five goals:
Act as a sustainable source of revenue for the state
Promote economic cooperation between residents and the city
Promote savings and wealth accumulation for all stakeholders
Encourage social action at the city level
Reduce wealth inequality
Regarding the last point, Buterin proposed that the vast majority of newly issued city codes should go to the inhabitants as a form of universal basic income. The co-founder of Ethereum has criticized the current economic mechanisms for favoring the “rich over the poor”.
The CityCoins project is the most visible in the crypto city described in the blog post, which is built on the Stacks (STX) blockchain. Stacks is a one-tier solution that allows you to use smart contracts on the Bitcoin (BTC) network. The protocol distributes 30% of the BTC mining revenue sent to STX holders to a dedicated wallet for each city.
Theoretical uses include discounts and benefits that local businesses offer to CityCoin holders. The group has already launched one of these city token types, MiamiCoin. Miami Mayor Francis Sanchez publicly supported him, saying he could “revolutionaryly change the way governments are funded.”
In addition to the socio-economic implications, Buterin also praised the potential of city symbols to improve current governance:
“A digital democracy in the twenty-first century with square voting and financing can reasonably do a much better job than a democracy from the twentieth century, which in practice largely seems to have been characterized by strict building regulations, stumbling blocks for planning. , and the decision of the hearing. Certainly. If you are going to use blockchain to secure voting, then it seems safer and more politically appropriate to start with cool new types of votes than to restructure existing voting systems. “