But what are CityCoins, and do they have real-world applications?
What Are CityCoins?
Imagine being able to contribute to the welfare of your city and get crypto-based incentives as a reward.
CityCoins are built on Stacks, an open-source blockchain web connection backed by Bitcoin.
Stacks allows users to develop their favorite cities and receive Bitcoin rewards.
On this platform, users can also build decentralized apps and mint NFTs.
CityCoins are powered bysmart contractson Stack.
CityCoins is privately-owned and not affiliated with any government or public organization.
So it’s a bit likeearning free cryptofor your city.
The first CityCoin, MiamiCoin (MIA), was created in August 2021.
MIA was followed closely by NYC, belonging to New York City, in November 2021.
The next CityCoin was ATX, conceptualized in 2022 for Austin, Texas.
How Do CityCoins Work?
The development of CityCoins is under the purview of the platform users.
But they must complete a few mandatory processes before their CityCoin is fully operational.
The first step is the nomination of a city.
Platform users vote on the city they want to launch a CityCoin.
After selecting a city, the city’s mayor has to consent before the users can proceed.
With the major’s consent, users can deploy the CityCoin.
Any user can initiate this process using the Smart Contract on Stack.
Note that the CityCoin platform depends on two important processes: mining and stacking.
Bidding involves locking STX into a smart contract to be rewarded with CityCoins with the discovery of each block.
Winners for each block are selected using a verifiable random function.
This function weighs the percentage amount of STX each miner bids.
The entire lot is sent to the city’s wallet when there are no stackers.
Stacking
This process involves sending CityCoins to a smart contract for a selected period.
Note that you cannot stack in a cycle in progress, only incoming ones.
The stacked CityCoins are removed once the reward cycle begins and can be claimed when it is complete.
In addition, those who stack their STXs can earn Bitcoin as a reward.
Modular DApps enable developers to build upon the apps created on Stacks.
A proof of transfer (PoX) consensus mechanism regulates all transactions on the platform.
This mechanism lays the basics for what all miners must do to develop apps on the platform.
Here are some ways CityCoins can help grow a city.
Miami’s possession of CityCoins and a digital wallet provides an avenue for actualizing these plans.
This enables CityCoins to be used as a platform for transparent revenue allocation and budget distribution.
Growth Contributions
Contribution to the city’s development is CityCoins' primary use.
CityCoins allow users to voluntarily contribute to their city’s coffers while being rewarded for it simultaneously.
It encourages inclusiveness, increases revenue, and reshapes governance on a new level.
