How do CityCoins Work?
What makes CityCoins possible
CityCoins are crypto tokens on the Bitcoin network. They’re powered by Stacks, a protocol that enables smart contracts on the Bitcoin network.
Think of smart contracts as computer programs or apps that run on crypto networks. They’re what make CityCoins programmable, and able to do useful things for their holders. When CityCoins do their useful things, it’s the smart contracts that do them.
Finally, Recycled Proof of Work ensures CityCoins’ security in an environmentally friendly way.
How CityCoins are created
1. The community mines CityCoins tokens
The community mines CityCoins by forwarding Stacks tokens (STX) into the CityCoins smart contract on the Stacks protocol. After ten minutes, the smart contract randomly awards one miner the new batch of 100,000 CityCoins. A community member’s chance of winning is weighted by how much STX they forwarded into the smart contract—the more STX they forward, the higher the chances of winning.
Those that don’t want to mine MIA themselves can buy tokens on an exchange.
2. The city’s funds grow
Every ten minutes, 30% of the STX tokens forwarded into the mining protocol go into a special wallet reserved for the city.
3. The community’s funds grow
The remaining 70% of STX is divided among people who “stack” their CityCoins.
A holder stacks their CityCoins by voluntarily locking them up for a set time in exchange for return in STX. They can then further stack that STX to earn Bitcoin.