New York City will have its own cryptocurrency, the NYCCoin, through the start-up CityCoins which offers a way for citizens to support the growth of their cities while mining cryptocurrencies.
It thus becomes the second city to have its own cryptocurrency. The NYCCoin, like the MiamiCoin, is a crypto supported under the Stacks (STX) protocol that allows smart contracts in Bitcoin.
According to CityCoins, New York is arguably the cultural, financial and media center of the world. Therefore, “where New York goes, the world follows,” which makes it a fantastic city in which to push this initiative.
How does NYCCoin work?
Under the CityCoins scheme, miners will be able to mine the NYCCoin by sending STX tokens through smart contracts in a one-way process. Miners are rewarded with new tokens of the cryptocurrency. Seventy percent of the mining rewards are distributed to people who opted to stack their NYCCoins and the other 30 percent will go into the coffers of the City of New York.
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Stacking involves holding a portion of the cryptocurrencies for a period of time so that they contribute to the blockchain chain. Another way to think of this activity, would be the act of stashing money in an investment fund for higher returns in the future. Stacking can increase the value of the token by limiting supply, while tokens can be used to govern the blockchain if the network uses a proof-of-stake (PoS) system.
In PoS systems, tokens are stacked to forge new blocks on the blockchain, for which participants are rewarded. “Winners are selected through randomization, ensuring no single entity will gain a monopoly over forging,” explains Nicole DeCicco, a cryptotechnology consultant.
The NYCCoin will be available for mining starting November 10. While the CityCoin team clarifies that the city of New York is not yet working with them, the creators of the crypto said that they will allocate a wallet to hold any profits the city has and that it will be able to claim them when it sees fit.
The cryptocurrency also has the advantage that the newly elected mayor of New York, Eric Adams, is a cryptocurrency aficionado and has said he is willing to receive his first three payments entirely in Bitcoin.
Adams is looking for New York to become a crypto-business hub in the future, and has even gone so far as to propose that the concept of cryptocurrencies and blockchain be taught in the city’s schools.
The next city to launch a cryptocurrency with CityCoins will be Austin in Texas. The “AustinCoin” (as it is known), still has no release date, but, like the NYCCoin or the MiamiCoin it will work with a stack protocol.
Economist, writer and liberal. With a focus on finance, the war on drugs, history, and geopolitics // Economista, escritor y liberal. Con enfoque en finanzas, guerra contra las drogas, historia y geopolítica