Miami and New York are two of the first cities to receive CityCoins, which will benefit local residents.
CityCoins bills itself as a way for residents to produce cryptocurrency-based money for themselves and their communities. Consider it a system that allows users to donate cryptocurrency to their home city or to support other cities in exchange for rewards.
Users of the CityCoins platform have already started issuing tokens for a few big cities, with the goal of improving the lives of those who reside there. Surprisingly, the project has chosen to run on a bitcoin-based ecosystem, allowing users and cities to potentially earn bitcoin.
The first two cities where CityCoins have been launched are Miami and New York. Citizens can also introduce CityCoins for their cities both within and beyond the United States of America.
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 four-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.
Then, on the Stacks mainnet, or live version, anyone can start the deployment of a new CityCoin by launching a smart contract (a software programme operating on a blockchain that takes particular actions when preset criteria are satisfied).
STX coins are available on prominent centralised exchanges such as Binance, KuCoin, Crypto.com, and OKEx. Download the Stacks Web Wallet and fund it with STX tokens.
Connect your Stacks Web Wallet to the MineCityCoins website by clicking the top right-hand corner button.
You’ll then need to “Submit the “register-user” transaction via the user interface, which registers your Stacks address and optional note on chain to signal activation of the CityCoin,” according to the official website documentation.
Finally, a minimum of 20 people must pay an amount of STX – Stacks’ native cryptocurrency – to the newly constructed smart contract in order to start the mining process. Miners must wait 24 hours after a CityCoin smart contract is activated before they can mine the newly produced CityCoins.
What exactly is Stacks?
Simply defined, CityCoins generates value for individuals and their own cities through a decentralised platform backed by smart contracts. The idea is to create a system that rewards users for their efforts to keep the system afloat while also generating revenue for the development of specific towns. CityCoins, unlike most crypto projects, has chosen to use various token schemes. It can use this architecture to generate a unique token for each supported city.
Smart contracts, as the name implies, are programmable contracts that are placed on the blockchain to minimise counterparty risk. In other words, they will only complete transactions or execute sets of orders if all parties involved meet the smart contract’s requirements.
You might be asking how CityCoins uses smart contracts-enabled transactions on a bitcoin-based infrastructure, given that smart contracts are not supported by the Bitcoin network. This is where “Stacks,” a technology, enters the picture.
Stacks, a blockchain infrastructure built on top of the Bitcoin network to enable smart contract applications, is responsible for all of City Coins’ bitcoin-powered implementations. Because CityCoins runs on the Stacks blockchain, which is a technical extension of the Bitcoin blockchain that includes smart contract functionality, it can take advantage of smart contract technology while still retaining Bitcoin’s security fabric.
Notably, two core processes underpin the entire CityCoin ecosystem. The first is known as mining, and the second is known as stacking.
What is the process of mining CityCoins?
CityCoins miners put STX into the CityCoins smart contract in exchange for a chance to win CityCoins tokens like MiamiCoin or NYCCoin. Bidding takes place on the Stacks blockchain, and each time a new block is discovered (roughly every 10 minutes, similar to Bitcoin’s block discovery time), a winning miner is chosen and paid with CityCoins tokens.
The number of STX each miner bids (deposits into the smart contract) in relation to the overall amount placed by competing miners determines the likelihood of emerging as a successful miner.
For example, if your portion of the STX sent to CityCoins smart contract is 50%, you have a 50% chance of being the miner eligible to claim the CityCoin token-denominated incentives for that block. Miners have the option of bidding for a single block or up to 30 blocks at once.
It’s vital to remember that depositing STX into a CityCoins smart contract is a one-way transaction. In other words, whether or not you are a successful miner, you will lose permanent access to the STX tokens transmitted to the protocol’s smart contract.
70% of all STX tokens deposited into the smart contract are given to stackers, with the remaining 30% going to the city’s wallet.
It’s also worth noting that during the initial reward cycle phase of mining for a new CityCoin, 100% of STX tokens entered into the mining smart contract are delivered to the city’s wallet. Each cycle has a duration of 2,100 stack blocks (approximately two weeks.)
If no users are stacking, all STX tokens are given to the wallet of the corresponding city.
Mining rewards in CityCoin work in a similar way to Bitcoin’s issuance timetable, in which payouts are halved every four years. Winning miners receive 250,000 CityCoins every block for the first 10,000 blocks. For the next 200,000 Stacks blocks, the reward is lowered to 100,000 coins per block (approximately four years.) After that, every 210,000 blocks, prizes are half until Stack block 1,050,000 is reached, at which point a fixed amount of 3,125 CityCoins will be released per block in perpetuity.
How do you stack CityCoins?
Stacking is similar to Ethereum staking in that it requires players to store digital assets in a smart contract for a fixed amount of time in order to gain rewards. The only distinction is that the earnings are in a different cryptocurrency. When you stake ether, Ethereum’s native cryptocurrency, you get additional ether in return. CityCoin holders, on the other hand, stack their tokens to gain STX. As previously stated, they get STX from the portion of STX tokens deposited by miners.
At present time, the only way to get CityCoins like MiamiCoin is to mine them. However, these tokens are expected to be listed on exchanges in the near future.People that stack their CityCoins can earn STX tokens as well as bitcoin, giving them a double return on their investments. The Stacks blockchain protocol is used for stacking, same as it is for mining.
What is the definition of a city wallet?
A customised wallet called a City Wallet is available in each city where CityCoins have been released. This serves as the city’s crypto treasury, with 30 percent of all miners’ STX bids being transmitted here.
The mayors of these communities can claim the funds in the City Wallet at any moment and use the capital created by cashing out the tokens to better their people’ lives. Even better, they can use the STX tokens they’ve accumulated in the City Wallet to earn bitcoin.
What is the difference between MiamiCoin and NYCCoin?
Two cities in the United States of America have already begun to accumulate STX in their city wallets. Miami and New York City are the two cities in question. Users of CityCoins have created native coins for each city:
MiamiCoin ($MIA) was released in August 2021 as the first CityCoins token, with the goal of rewarding miners and providing holders with STX and bitcoin. MiamiCoin, as its name suggests, is a way for Miami residents to contribute to the city’s development while also receiving incentives for their efforts. As a result, when a miner deposits STX to the MiamiCoin smart contract, the miner may receive MiamiCoins as a reward.
More crucially, a percentage of the deposit will go to the city of Miami’s coffers.
The protocol’s contribution to the city has increased to $20 million worth of STX tokens in just under three months since it went live. It’s worth noting that the city’s leadership has taken charge of the wallet since then.
NYCCoin (Newyorkcitycoin): NYCCoin is a variation of the CityCoins tokens that was created to promote a thriving crypto ecosystem in New York. The NYCCoin smart contract went live on November 10, 2021, and citizens have already begun mining and stacking the token for a chance to receive rewards. NYCCoin, like MiamiCoin, provides a way for people to contribute to the city of New York’s economic progress. Eric Adams, the incoming mayor of New York City, has already declared his support for NYCCoin.
Austin, Texas has been promoted as CityCoins’ next frontier, with plans to launch AustinCoin ATX appearing to be nearing completion. The mayor of Austin, Steve Adler, has yet to approve the ATX token launch, unlike MiamiCoin and Newyorkcitycoin.