CityCoins deals with Stacks Ventures to expand services through 11 new projects

CityCoins is going to become more appealing to international mayors looking for digital assets to receive rewards and bolster their economies, following the Stacks Ventures project incubator accepted 11 projects.

Stacks Ventures is a $4 million fund dedicated to initiatives based on the Stacks Bitcoin layer-2 smart contract platform. CityCoins is a project that allows partnered city authorities to introduce their own token 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 agreements.

The popularity of crypto in these cities can be seen by the announcement by NYC Mayor Eric Adams in January to receive his paycheck in crypto.

Cohort of 24 projects to CityCoins

Stacks Ventures will incubate 11 more ideas in its second cohort of 24 projects, which will include wireless networking, Web3, gaming, NFT, DAO, education, and DeFi to CityCoins.

During a recent interview, Stacks Ventures partner Trevor Owens said that earning Bitcoin returns may “replace a city’s tax 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 by cryptocurrency 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 would use its prizes to generate BTC yield, which would then be handed to people. 

The new startups working on CityCoins, according to its founder Patrick Stanley, will help it achieve its mission of “increasing the health, wealth, and happiness of cities and citizens wherever it’s activated.” He does, however, want a stablecoin on the initiative in the end.

Notably, as TheCoinRise reported, in early- February, the City Council said that Philadelphia is ready for CityCoins.