CityCoins Protocol Upgrade #2
Over the summer, CityCoiners have been working on a plan to stabilize the protocol and optimize for future development, experimentation, and growth.
Community discussions and feedback have resulted in a four-phase approach designed to stabilize the protocol. The phases have been split into two separate CityCoins Improvement Proposals (CCIPs):
Phase 1: Reduce CityCoin Emissions
- In April, CCIP-008 tested stemming CityCoins’ miner arbitrage problem. Results were mixed; arbitrage volume was reduced but it is still persistent.
- Phase 1 will reduce CityCoins inflation to 2% annually, estimated completion by late September.
Phase 2: Move CityCoin Treasuries to Smart Contract Vaults
- Today, CityCoin treasuries are stored in a 2-of-3 multisig Bitcoin wallet.
- Phase 2 will replace the multisig wallet with a smart contract vault secured by a DAO implementation that can grow with the protocol.
- The initial DAO structure would start with the same 3-of-5 signers from the auth contract to instantiate the DAO, enable proposals, and provide temporary veto/execution.
- Using this DAO structure, proposals would be created and executed in order to:
#1. Create treasuries for existing cities
#2. Stack treasuries for existing cities
Phases 3 + 4 are intended to simplify CityCoins protocol design and bring ownership and execution of CityCoin contract updates into the DAO established in Phase 2.
Phase 3: Simplify the CityCoins Contract Design
This phase consolidates the CityCoins core contract design for all cities and would be implemented and executed by the DAO established in Phase 2 to take ownership of the protocol.
The design simplifies the protocol structure by creating a central set of contracts for the protocol. User registration, mining, stacking, and activation are tracked per city, reducing the amount of overhead for protocol upgrades and maintenance.
Phase 4: Update Registration, Mining and Stacking Flows
In addition to the overall protocol changes above, this phase implements a change to the value flows in mining and stacking, such that:
- 100% of STX spent mining CityCoins is transferred to the city’s treasury
- 100% of the STX within the city treasuries are stacked for BTC earnings
- CityCoiners will be able to lock their tokens to claim their portion of the BTC earnings (in xBTC)
You can read the full proposals linked above, or click here to read a detailed breakdown of all four phases by CityCoins core developer whoabuddy.btc.
What happens next?
If you hold CityCoins, get ready to cast your vote on the proposal.
In April, the community successfully voted for and implemented a protocol upgrade to (1) establish an on-chain voting process and (2) compress the protocol emissions schedule.
The community intends to use the same on-chain voting process to vote on CCIP-012 and CCIP-013.
Voting for CCIP-012 is planned to begin on block 74,300 on Friday, September 2nd, and will run until block 76,400 on Friday, September 17th (14 days).
If you have questions, or would just like to join the discussion around the protocol upgrade, please head to the #path-forward channel in the CityCoins Community Discord.