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    Explained: CityCoins and how they work

    Explained: CityCoins and how they work

    Explained: CityCoins and how they work
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    By CNBCTV18.com  IST (Published)

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    CityCoin is a privately-owned project on the Stacks blockchain. It helps citizens generate crypto revenue for themselves and their cities. One can purchase and HODL the various CityCoins, such as NYCCoin and MiamiCoin, to enjoy potential long-term gains.

    What do New York and Miami have in common? Apart from being melting pots of American culture, they each have their own CityCoin. In this article, we learn about CityCoins, how they work, and how they could be advantageous to the cities of the world and their citizens. So, let’s get started with the simplest question first:
    What are CityCoins?
    CityCoin is a privately-owned project on the Stacks blockchain. It helps citizens generate crypto revenue for themselves and their cities. One can purchase and HODL the various CityCoins, such as NYCCoin and MiamiCoin, to enjoy potential long-term gains.
    Or one can participate in the mining and staking activities of the project to create revenue for themselves and their city as well. The funds generated for the city can be used for public works, events and other activities that will benefit its citizens.
    It is to be noted that CityCoin is not related to any governing body or linked to any public-private partnership. It is created by a corporation to bring together cryptocurrencies and the development of cities.
    How does CityCoins work?
    CityCoins are not restricted to any city or country — there can be a protocol for every city in the world. All one has to do is get enough people to nominate their city for its own CityCoin project and get approval from the city’s mayor. Once these two conditions are met, all you need to do is to launch a smart contract, get at least 20 people to contribute STX tokens to the smart contract, and you’re good to go.
    CityCoin doesn’t have one singular token. Instead, it has different tokens that vary by city — like NYCCoin for New York City and MiamiCoin for Miami. It also uses the native token of the Stacks Blockchain, STX, to carry out the staking and mining process. Stacks is essentially an extension to the Bitcoin blockchain that gives people the ability to create smart contracts based on the Bitcoin blockchain. It is readily available on most crypto exchanges.
    Why is the CityCoins project gaining popularity?
    The popularity of CityCoins stems from the sense of community that they brings. Every resident and lover of a city would want to get hold of a token with their city’s name attached to it. Plus, the project creates revenue for the city and its investors.
    Further, no one has enough time to go through city budgets to see how much money is spent and where. With blockchain in the picture, you now have an overview of the mayor’s leadership and where they plan to spend the crypto funds.
    The Mining process
    The mining process of CityCoins is similar to Bitcoin. Each transaction is sealed permanently in a block, and each new block added gives the miner some reward. The reward is halved every four years until it reaches 3,000 tokens for every new block mined in perpetuity.
    A miner has to contribute STX to participate in the mining process. The more STX submitted, the higher the chance of being selected for the block verification and addition process. Once the block is added, the miner receives a reward in the form of the CityCoin they are mining.
    The STX tokens contributed to the smart contract are released, with 70 percent going to the city’s wallet and the rest distributed amongst the CityCoin stakers.
    The future prospects
    If CityCoin gains global popularity, we’ll have more transparency in solving immediate problems. People will be more vested in their city representatives and how responsible they are. We will also see the wealth of cities displayed on a crypto scale and some urgent problems solved very quickly. We can also see further divisions within the protocol to disaster relief, emergency funds, etc.
    Conclusion
    The CityCoins project is a landmark in the cryptoverse because it has gotten elected officials to back it and take accountability for it. This opens new ground for more public-crypto ventures and increased mainstream adoption of virtual digital assets.
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