How Cities Can Use Freeholds and CityCoins
We recently announced CityCoins, a new way that people can use cryptocurrency to support their favorite cities. CityCoins are more than just a concept: that same day, we announced the first CityCoin, MiamiCoin ($MIA).
Today, we’ll explain in more detail exactly how cities can use their CityCoins in tandem with Freeholds to engage hodlers and create community projects that benefit everyone.
CityCoins let anyone support their favorite city
Here’s how CityCoins work. As for how cities can use these funds:
Cities can take the STX from their dedicated wallets and use them to mine more of their CityCoin, thereby using their coins to generate a second stream of income.
Cities will already be earning a healthy stream of STX and BTC revenue just by holding onto their reserve wallet. But, they could earn even more by mining their own CityCoin. If MiamiCoin’s market cap is, say, a billion dollars, then the city can earn millions of dollars more every year if they mine their own coin.
It’s a great idea for a city to mine or buy its own coin to reward deserving folks. That’s all money that can be put back into the city for the benefit of its citizens and visitors.
Cities can also put that money to work using Freeholds, a community of hodlers who are rewarded in crypto for working on projects they believe in.
Freeholds let cities reward their supporters
With a dedicated stream of income, cities are in a perfect position to sponsor projects and motivate their supporters. That’s where Freeholds come in. By leveraging their Freeholds, cities can use their CityCoins to reward supporters who do useful work on their behalf.
What might that work look like? Well, for instance:
- Building an app that uses their CityCoin. E.g. enabling token hodlers to vote on initiatives, receive unique discounts and benefits, or use their tokens to gain access to digital or even physical spaces
- Reward people who create content attracting visitors and new residents to the city
- Host massive competitions challenging competitors to invent solutions to specific problems, or create completely new projects and initiatives that benefit the city. E.g. hosting a decentralized 'X-Prize' awarding $1 million to whoever can bring internet access to certain zip codes
Hodlers want to work
Using Freehold’s HODL Score, cities can also determine who among their coin holders is a missionary and who’s a mercenary. What do we mean by that?
Missionaries are long-term bullish on the city. It’s in the city’s interest to gather as many of these capable and dedicated supporters as possible.
Mercenaries, however, hope to turn a quick profit. They’re a “gun for hire” with no underlying attachment to the city or the CityCoin, gathering the CityCoin more for personal gain than collective good. There’s nothing wrong with this––every bit of CityCoin out there helps––but they’re not missionaries or true believers. While mercenaries can useful in the short-term, in the long-term, you want a community unified by their shared belief and goal.
People who hodl a city’s coin for long periods have already proven their dedication. After all, they believe in the city so much that they want to become further stakeholders in the concept of the city––they’ll have a hard time selling or shorting the city they love.
Investing more than money
Community supporters, true believers, missionaries: whatever you call them, many of these supporters want to invest more than just their money in the city––they want to offer their time, energy, and talents.
By using their Coins to incentivize community projects via Freehold, cities can motivate and reward their most passionate supporters. Those supporters do good work and earn more CityCoins that they can stack for personal rewards all while supporting their beloved city. Everybody wins.