What are CityCoins and How Do They Work

CityCoins presents itself as a way for residents to produce cryptocurrency-based revenue for themselves and their communities. Consider it a system that allows users to donate cryptocurrency to their local city or to assist other cities in exchange for benefits.

Users of the CityCoins platform have already started issuing tokens for a few large cities in order to help residents improve their lives. Surprisingly, the project has chosen to operate on a bitcoin-powered environment, which allows users and cities to earn bitcoin.

The first two cities where CityCoins have been started are New York and Miami. Citizens can also introduce CityCoins for their cities from within the platform.

How Do CityCoins Work?

At first look, it appears that the project’s team is responsible for the production and management of CityCoins. Individual users, on the other hand, have complete control over the procedure. The project merely offers the infrastructure to facilitate the implementation of each CityCoin.

So, how do you go about launching your own CityCoin? It is a quick-step procedure. To begin, the crypto community can vote on which city should be the next to receive a CityCoin by filling out a survey on the website. Once a city has been selected, it is critical that the mayor of that city backs the concept and agrees to claim the city’s money.

Mining and stacking are the two initial functionalities of CityCoins.

Mining

CityCoins are mined on the Stacks protocol by sending STX (the Stacks token) to the CityCoins smart contract. The winning miner can claim their CityCoins at any time from their Stacks address.

Miners send 30% of their STX to the Stacks protocol to a wallet that is designated for each city in the CityCoins ecosystem. The mayor of a city may accept the reserved wallet to access the treasury for the city’s use at any time.

Stacking

Stacking is a mechanism on the Stacks protocol that allows CityCoins to reward for holders in STX and BTC.

The remaining 70% of STX that miners provide to the Stacks protocol is awarded to CityCoin holders who wish to stack their tokens. Holders must lock their CityCoins for predetermined “reward cycles” in order to stack them.

STX prizes are earned by stacking CityCoins. BTC rewards can be earned by stacking STX rewards on Stacks.

How to Create a CityCoin?

To create a city coin you will have to visit EGG.FI’s CityCoins page and click on the “Select a city” button so you can see if your city is created by someone else or its not yet added on our website.

If your city is not yet added, you can add it and for that you will be rewarded with some city coins, you can also complete other profile tasks like adding a full name, verify email address and connect Web3 wallet in order to earn more city coins.

What Can I Do With City Coins?

You can mine, hold, stack CityCoins to earn STX, borrow, lend, and program any CityCoin. CityCoins are a new way for developers to create applications and test out new use cases based on open source technologies.

The benefit of CityCoins at launch will be earning STX. CityCoins, on the other hand, are programmable and will grow in value over time. As towns claim their protocol contributions one by one, communities and software grow around their respective CityCoins, the potential of CityCoins become limitless.

Tokens will be used by CityCoins communities to construct apps for incentives, local benefits, access control (to digital or physical venues), trade, lending, smart contract execution, and more. Local businesses, for example, can offer discounts or other incentives to customers who “Stack for their city” by stacking their CityCoins.

CityCoins Key Points

What are the Tokenomics of CityCoins?

Demand for CityCoins is fueled by their earning potential as well as their expanding utility, which is allowed by their programmability. On top of their basic economic functionality, CityCoins will evolve over time as cities and their residents see fit, imparting reputational, identity, ownership, access control, and programmable utility.

What Is the Purpose of Stacks in CityCoins?

On Bitcoin, Stacks enables smart contracts and apps. It enables a feature known as “Stacking,” which allows you to earn BTC by locking STX in the protocol. CityCoins has a similar Stacking mechanism to allow CityCoin holders to Stack their tokens to acquire STX, which can then be stacked again to earn BTC.

What Is the Procedure for Mining CityCoins?

Anyone can compete to mine a new CityCoin when it is released. Competitors compete by sending STX to the Stacks protocol. A Verifiable Random Function (VRF) selects a winning miner once per block, weighted by total STX spent. Miners deposit 30% of their STX into a custodial wallet, which is earmarked for each city if they choose to accept it. The remaining 70% of STX is given to Stackers as an incentive.

CityCoins is an open source cryptocurrency that can be integrated with a variety of centralized and decentralized exchanges.

How Can I Put CityCoins Together?

For a voluntary amount of time (“reward cycle”), CityCoins can be frozen on the Stacks protocol, earning STX as a reward. The transmitted STX from CityCoin miners accounts for 70% of the rewarded STX. The STX acquired can be stacked to earn BTC incentives.

What Is the Purpose of the City Wallet, How Is It Funded, and How Is It Used?

Each city has its own wallet that is held in trust for them and can be claimed at any time. It is supported by the CityCoins protocol, which directs 30% of all STX sent by miners to it. City wallets can be used for whatever the city thinks is appropriate. City treasury will continue to accumulate STX as CityCoins are mined. Each city’s mayor must claim their custody wallet before the monies can be used.

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of EGG Finance. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.