In a blog post published on Sunday, Ethereum (ETH) co-founder Vitalik Buterin voiced his support for utilizing the cryptocurrency phenomena to serve the interests of local governments and their citizens.
Specifically, Buterin discussed the formation of city tokens and decentralized autonomous organizations, known as DAOs. DAOs are self-governing organizations where users draft and enforce rules themselves, such as voting on protocol amendments based on the amount of the underlying crypto tokens they hold.
- Act as a sustainable sources of revenue for the government
- Facilitate economic cooperation between residents and the city
- Promote saving and wealth-building for all stakeholders
- Encourage city-wide social initiatives
- Reduce wealth inequality