The Miami City Commission on Monday voted in favor of accessing over $4.5 million of MiamiCoin, a cryptocurrency created to develop the city’s municipality projects.
With over $4.5 million in contributions in the MiamiCoin project in just 40 days, MiamiCoin is a new cryptocurrency that was launched earlier last month, created by the nonprofit CityCoins. As of Tuesday morning, the digital currency generated over $4.8 million.
However, the developer of the project does not own MiamiCoin but like most cryptocurrencies, its ownership is decentralized. Like Bitcoin, there will be a mining consensus mechanism, albeit with a different twist.
For instance, every time a MiamiCoin is mined, the city receives 30% of its value, while the miner retains the remaining 70%. In fact, the 30% of the reward for doing so is deposited as a contribution into a virtual wallet reserved for Miami, the access to which the commissioners approved on Monday.
The value of the MiamiCoins in the city’s wallet is determined by the value of another cryptocurrency, called Stacks. At the time of writing, one Stack is currently worth $1.50. With more than three million Stacks committed to the city of Miami’s designated wallet, Miami now has access to funds worth some $4.5 million, and counting.
Anyone can access MiamiCoins through mining them or through buying them on an exchange, though currently, only one cryptocurrency exchange called Okcoin.com is selling them.
The digital tokens could spend it on infrastructure, education, or public safety, but, the nonprofit says, “the real value in CityCoins lies in the fact that they are decentralized, programmable, and can be applied to a wide range of use cases.”
Among the uses Miami commissioners have initially proposed for the funds includes programs to mitigate climate change, funding new initiatives for underprivileged communities, crypto education including entry or verification of identity to special events or voting.