Vitalik Buterin shares a positive outlook on creating crypto cities

In a post on Sunday, the Ethereum (ETH) co-founder, Vitalik Buterin, expressed his support for the use of the cryptocurrency phenomenon to serve the interests of local governments and their citizens.

Specifically, Buterin spoke of the formation of city tokens and decentralized autonomous organizations, known as DAOs. DAOs are autonomous organizations in which users write and enforce rules themselves, such as voting on protocol modifications based on the number of underlying tokens they own.

The idea is still in its infancy. Nevertheless, Buterin stated that city tokens should satisfy at least three of the following five goals

  1. Act as sustainable sources of income for the government.
  2. Facilitate economic cooperation between residents and the city.
  3. Promote savings and wealth creation for all stakeholders.
  4. Promote social initiatives throughout the city.
  5. Reduce wealth inequality.

Regarding the last point, Buterin proposed that the vast majority of the newly issued city tokens go to residents as a form of universal basic income. Ethereum co-founder criticized current economic mechanisms for favoring “the rich over the poor” –

The most prominent cryptocurrency project described in the blog post is CityCoins, which is based on the blockchain Stacks (STX). Stacks is a layer one solution that enables smart contracts on the red Bitcoin (BTC). The protocol allocates 30% of the BTC mining revenue sent to STX holders to a wallet reserved for each city.

Theoretical uses include discounts and benefits provided by local businesses to CityCoin holders. The group has already launched a type of city token, MiamiCoin. Miami Mayor Francis Suárez has publicly supported her, stating that she could “Revolutionize the way governments are financed.”

Aside from the socio-economic effects, Buterin also praised the potential of city tokens to improve existing governance:

“The digital democracy of the 21st century, through quadratic voting and online financing in real time, could do a much better job than the democracy of the 20th century, which in practice seems to have been characterized largely by the rigidity of building codes and obstruction of planning and permitting hearings. And of course, if you’re going to use blockchains to secure voting, starting out with wacky new types of votes seems much safer and politically feasible than resetting the systems. voting system “.

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Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Phone : +1 281-333-2229

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