What are CityCoins?
CityCoins offer people a way to support their city and grow its crypto treasury while earning Bitcoin BTC and Stacks STX for themselves. Each city has their own coin, starting with Miami and MiamiCoin (MIA). See MiamiCoin FAQ in the second half of this document.
What can I do with CityCoins?
With any CityCoin, you can mine it, hold it, stack it to earn STX, borrow it, lend it, and program it. Built on open source software, CityCoins are a new way for developers to create applications and experiment with innovative use cases.
At launch, the benefit of CityCoins will be earning STX. However, CityCoins are programmable and will have additional utility over time. The possibilities of CityCoins become endless as cities one by one begin to claim their protocol contributions and communities and software develop around their respective CityCoins. CityCoins communities will create apps that use tokens for rewards, local benefits, access control (to digital or physical spaces), trading, lending, smart contract execution, and more. As one simple example, local businesses can provide discounts or benefits to people who show they “Stack for their city” by Stacking their CityCoins.
How do CityCoins work?
CityCoins have two initial functions at launch: mining and stacking.
CityCoins are mined by forwarding STX (the Stacks token) to the CityCoins smart contract on the Stacks protocol. The winning miner can claim their rewarded CityCoins from their Stacks address at any time.
30% of the STX that miners forward to the Stacks protocol is sent directly to a wallet that is reserved for each city that is part of the CityCoins ecosystem. The mayor of a city may elect at any time to accept the reserved wallet to access the treasury for use by the city.
CityCoins earn for holders in STX and BTC through a function on the Stacks protocol known as Stacking.
The remaining 70% of the STX that miners forward to the Stacks protocol is distributed to holders of CityCoins who choose to stack their tokens. Stacking requires holders to lock their CityCoins for determined “reward cycles.”
Stacking CityCoins earns STX rewards. STX rewards can further be stacked on Stacks to earn BTC rewards.
What are CityCoins’ Tokenomics?
Demand for CityCoins is driven by their earning capabilities in addition to their growing utility, enabled by the fact that they’re programmable. CityCoins will continue to grow over time as cities and their citizens see fit, bestowing reputational, identity, ownership, access control, and programmable utility on top of their fundamental economic functionality. Learn more about CityCoins Tokenomics.
Why are CityCoins built on Stacks?
Stacks enables smart contracts and apps on Bitcoin. It enables a function called “Stacking“, which earns BTC when you lock STX in the protocol. CityCoins leverage a similar Stacking function to enable CityCoin holders to Stack their tokens to earn STX, which can be further Stacked to earn BTC.
How do I mine CityCoins?
When a new CityCoin is launched, anyone can compete to mine. Miners compete by forwarding STX into the Stacks protocol. Once per block, a winning miner is randomly selected by a Verifiable Random Function (VRF), weighted by total STX spent. 30% of STX spent by miners is forwarded into a custodied wallet, which is reserved for each city should they choose to accept it. The remaining 70% STX is distributed to Stackers as rewards.
CityCoins may be available on exchanges shortly after mining begins and rewards are generated. MiamiCoin is coming to OKcoin soon!
How do I Stack CityCoins?
CityCoins can be locked on the Stacks protocol for a voluntary period of time (“reward cycle”), earning STX as a reward. The rewarded STX comes from the 70% of forwarded STX from CityCoin miners. The earned STX can be further stacked to earn BTC rewards.
What is the city wallet, how does it get funded, and how does it get used?
Each respective city has a special wallet that is custodied for them and can be claimed at any time. It is funded by the CityCoins protocol, which automatically forwards 30% of the STX transferred by miners directly to it. City wallets can be used for whatever purpose the city deems fit. As CityCoins are mined, city treasuries will ongoingly accumulate STX. Before cities can use the funds within, each city’s mayor must claim their custody wallet.
Who built CityCoins and MiamiCoin?
The ideation, development, and launch of the CityCoins project has been stewarded by CityCoins Inc, with support and contribution from Syvita Guild, Z1, DoubleUp, Freehold, and the Stacks Community.
Is CityCoins live?
The first CityCoin to launch is MiamiCoin (MIA). MiamiCoin mining can be initiated on August 3, 2021 at 1pm EDT. The earliest MIA miners receive a higher reward rate during the launch of the protocol. Head to the CityCoins Github to learn more.