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Ethereum co-founder Vitalik Buterin believes city tokens will help facilitate financial equality, better social development programs, and good governance.
The Russian-Canadian programmer and writer expressed these thoughts in a blog post on Sunday.
Vitalik, citing two US states (Miami and Wyoming) as a reference, says there’s been a “growth of interest” amongst local governments to experiment more with decentralized autonomous organizations) DAOs.
DAOs are open-source blockchain protocols guided by rules created by elected members that automatically carry out specific actions without intermediaries. DAOs exist without a hierarchical chain; as such, they do not have an arrowhead leadership.
Vitalik Buterin argues that local governments (cities and states) are better prepared to adopt DAOs because they are “capable of genuine dynamism” – at least on paper.
“It’s easier to find a single city where there is public interest in adopting any particular radical idea than it is to convince an entire country to accept it,” Buterin said in the article.
He highlighted local public goods, urban planning, and transportation as some of the “challenges and opportunities” for DAOs to be tried.
Many naysayers have predicted doom for smart city experiments, but Buterin believes the trials are more likely to turn out well.
“It’s less likely that experiments within cities will lead to terrible outcomes both because cities are regulated by higher-level governments and because cities have an easier escape valve: people who are unhappy with what’s going on can more easily exit.
City Tokens can help improve existing governance – Vitalik Buterin
Furthermore, Vitalik Buterin believes city tokens are viable assets to enhance governance.
“21st-century digital democracy through real-time online quadratic voting and funding could plausibly do a much better job than 20th-century democracy, which seems in practice to have been largely characterized by rigid building codes and obstruction at planning and permitting hearings. “And of course, if you’re going to use blockchains to secure voting, starting off by doing it with fancy new kinds of votes seems far more safe and politically feasible than re-fitting existing voting systems.” Buterin said.
No doubt, city tokens are on the uprise and Buterin’s statements would give them more credibility.