11 new firms from the Stacks Ventures project incubator have added features to the CityCoins project on Stacks. The Stacks Ventures project incubator has approved 11 projects to help make CityCoins more interesting to mayors around the world who wish to use a digital asset to collect incentives and boost municipal economies.
Stacks Ventures is a $4 million fund dedicated to initiatives based on the Stacks (STX) Bitcoin layer-2 smart contract platform. CityCoins is a project that allows partnering local governments to establish their own cryptocurrency on Stacks, with Miami and New York City being the first to do so with MiamiCoin and NYCCoin, respectively.
Local governments get CityCoin incentives and stake the asset to receive further Bitcoin benefits as part of the partnerships.
Stacks Ventures will incubate 11 initiatives that add wireless networking, Web3, gaming, nonfungible token (NFT), decentralized autonomous organizations (DAO), education, and decentralized finance (Defi) features to CityCoins in its second cohort of 24 projects.
Stacks Ventures partner Trevor Owens told that earning Bitcoin returns may “replace a city’s revenue base” in addition to the new capabilities. In essence, he claims that cities might collect enough revenue to cover all costs that would otherwise be covered by taxes.
Cities that use CityCoins are compensated with 30% of the fees paid in STX currency miners. Mayors can either sell their STX awards for USD right away or stack them to gain Bitcoin yield. Staking tokens on the Ethereum network is analogous to stacking on the Stacks network.
Last November, Miami Mayor Francis Suarez stated that his city will use its prizes to generate BTC yield, which would then be handed to people.
The addition of NFTs, Defi, and Web3 to CityCoins, according to Owens, provides the biggest possibility for prospective communities. “Web3 is all about ownership,” he continued, “and NFTs might be used to own all nonfungible things.”
This is within striking distance, as mayors can see. They can use CityCoins to add services and apps that make their inhabitants happier and healthier.
The new startups working on CityCoins, according to its founder Patrick Stanley, will help it achieve its aim of “increasing the health, wealth, and happiness of communities and citizens wherever it’s activated.” He does, however, want a stablecoin on the project in the end.
“People will always converge towards a steady asset because the cognitive overhead on volatile assets is far too large,”. As a result, volatile assets such as Bitcoin (BTC) are unlikely to be used as a currency.
Stanley believes that when CityCoins expands to service more cities and people, the initiative will be able to help communities combat inflation through stablecoins, which he says disproportionately affects the poor. He stated
“Cities may be forced to shield their inhabitants from inflation in the future.” Isn’t it fantastic if they could do it with a stablecoin that earns Bitcoin yield?”
According to the economy tracker US Inflation Calculator, the current inflation rate in the United States is at an all-time high of 8.5 percent per year, the highest since 1981.
Stanley’s enthusiasm for stablecoins as a vehicle for promoting crypto adoption is similar to that of VegaX’s Sang Lee, who believes stablecoins will be critical in bringing bitcoin into capital markets.
Join our Telegram Channel to get the best notification regarding Pricing Prediction, Trading Analysis, News, Blogs, and interviews.
