Introducing tokenomics into cities

[zrixes]

A city, as we know it has its beauty and challenges, for every 1)well-governed, 2)scenic city, lies various challenges, e.g.1)underfunded public infrastructure, 2)housing issues, etc, due to misaligned incentives across stakeholders. Can we leverage tokenomics to find a solution?

Tokenomics uses a novel approach to solve this misalignment, whereby the consensus mechanisms of blockchains create trust among independent participants in decentralized networks. This creates a strong network effect due to the economic flywheel enabled by tokens incentivising participants and coordinating all economic activities in crypto networks.

Take #MiamiCoin ($MIA) for example, it gives people a way to support the City and grow its crypto treasury while earning #BTC  and $STX yield themselves. As a city integrates Blockchain technology on a micro-level, it introduces new possibilities that were once deemed impossible, thereby allowing opportunities for new solutions to arise.

I'll explore a couple of ideas that I feel passionately below:

Digital ID on the blockchain that’s secure, private, decentralized and owned by users managed via hardware accessories like
@Ryder_ID and integrates with public & private services of the city. Enabling a more seamless living experience between online<>offline.

Increased accountability and sound governance, as city officials are incentivized to publish detailed master plan of the city and execute on them to build accountability which then translates to public trust  and support for its crypto treasury to fund projects.

Using DeFi to fund public goods.
DeFi solutions are coming up every other day and being battle-tested in the face of huge drawdowns and volatility. Using DeFi to fund large infrastructure expenditure in a sustainable and equitable manner, imo is very much a real possibility.

Safeguards can be built into treasuries, via smart contract as part of the condition before a city decides to tap into its crypto treasury. Tokenomics when applied appropriately are like healthy steroids, supercharging existing models that are working to be more impactful.

In my opinion, blockchain technology accelerates the transition to cloud cities as we can now transfer value digitally in a trustless manner, digital scarcity has been established and self-governing digital ecosystems are taking shape as we speak. It provides a real alternative to millions of people that are currently being marginalized in their home countries due to various reasons. Individuals can now opt into cloud cities that resonates with them ideologically, culturally, or economically.

The above are some possibilities that I find fascinating, hope it’ll inspire more to do the same, as we collectively tinker on ways to improve our living spaces, thereby leaving it a better place for the next generation.

I wrote a piece discussing on the above topic, read on for a deeper discussion! https://www.publish0x.com/randommusing/incorporating-tokenomics-into-cities-xgldyqq

[odolvlobo]

There have been many attempts at local currencies in the past. None have succeeded in any significant way.

[zrixes]

Thanks for your comments and i agree that theres no point in introducing yet another local currency.

The idea of citycoins is to enable stakeholders to buy-in into a city that resonates with them and have conviction in their growth. Not so much as a local currency to be spending on everyday item.

While at the same time, citycoins enables the city to adopt blockchain technology which opens a wealth of possibilities that we once deemed impossible.

[Tipstar]

City coins could actually come to reality. I've heard about similar concepts being talked in some Chinese cities.
Digitization of personal identity with records of offenses and medical history could be useful for efficient work for the city services.
The coins could be used as a reward and punishment coin where you pay fines with the coins while get rewarded for good deeds. You can't sell the coin and the only wya earners can redeem the coin is using the city services like parking fees, public transportation, rental service, registrations and renewals.

[odolvlobo]

Thanks for your comments and i agree that theres no point in introducing yet another local currency.
The idea of citycoins is to enable stakeholders to buy-in into a city that resonates with them and have conviction in their growth. Not so much as a local currency to be spending on everyday item.

So, then your proposal is to sell a coin that represents equity in a city, and I could own 10% of Miami, for example. What would that mean? What would be my incentive? Would I receive dividends? Would I get 10% of the vote?

Or is it a stablecoin, and I am loaning the city money when I buy the coin?

[amishmanish]

These ideas are some of the first and most obvious use-cases for moving towards a more decentralized future.

The push towards globalization integrated us and increased opportunities as well as earning. Yet, by consolidating ownership in the hands of a few, it increased inequalities to a large extent. Ideas like a decentralized governance of localized communities like cities with stake/ shareholding by its own residents may prove to be an ideal method of redistribution of resources and earnings.

One problem is who gives legitimacy to these coins? What is the mandate for someone to start a coin. Is it even allowed as per local laws and regulations.

OP, What do you know about MiamiCoin btw? Do you own it?