I'm positive that the answer to that question is expressed well above, and it's only a matter of time before people see the value in running a fair network of wealth creation. The city project has caught my attention lately and got me wondering why a project so impactful could be so underrated? All people care about these days is a bunch of lame apes selling for millions? Where all the developments to back this overpriced đđŠs at?
No, I didn't just buy a JPEG because I own it(am sure there are more to it), but I'd prefer to have my money not only pay me, but pay for country developments without any more taxes coming in. The design of CityCoins are just incredible, nothing about the technical level if that's what you're thinking, I'm more focused on how it creates this value and how it distributes it.
What are CityCoins?
CityCoins are cryptocurrencies that allow you to support your favorite cities while earning Bitcoin (BTC) and Stacks tokens (STX).
The idea is to create a system of finance that pulls in value from the outer world to the crypto ecosystem, regenerating Income that can be rewarded to participants and also used for developing the outer world. Built on the most secure chain, leveraging the power of bitcoin to fuel a state economy?
It may interest you to know that a city account holds more than $9 million as a 30% rewards cut for city developments already!.
How Does It Work?
CityCoins runs on a proof of transfer consensus, there are no ICOs, no pre-mine and no pre-sale. CityCoins are mined into existence by sending Stacks Token (STX) to a smart contract to earn CityCoin. Miners compete for block rewards and this reward is being used to reward stackers and also the city, how?
70% of the rewards are being distributed to the stackers and 30% of the funds are allocated to the state reserve where the system can elect to utilize the funds therein.
When you look at how crypto has managed to empower an entire city then you know we're up for big shits. As already stated above, Miami has already earned about $9 million by this, and that's just a signal to the power of cryptocurrency, the effects of a collective economy, directly backed by the people.
It's amazing how this can factor out in coming times, picturing an economy where the funds in reserves are better utilized for city developments, whereas the said developments are voted in by CityCoin holders, this creates room for a whole new system of governance for the nation, and frankly, this is where the new phase of governance lives off from.
If we look deeper, with the current teasers of DEFI with CityCoins, it's inevitable that more value is about to be created to not only reward the participants, but to fuel the city developments.
How Really Can Crypto Aid Eradicate Government Debt?
If only the government had an idea what they are sleeping on, then they wouldn't. If Defi is to be explained in full pack, then this oldies would be hyped and running after it already. Let's look at a key way to regenerate income without borrowing!
Building A Protocol That Rewards The People!
Allocation of yields can be tricky, but when closely followed up, there's always the inevitable which attracts investors.
Ok, let's build a protocol to reward users and see how to fund government developments shall we?
Let's name it Country Pool, and let's fund this with 1 billion dollars, and yes, allocate a 70% yield! It's basically what we have happening with CityCoins, but with more added functions.
Allocating a 70% to a pool doesn't mean everybody gets a 70% interest on their capital, does it? Nope, not that, rather, a 70% of the entire yields is distributed to everyone, but why would people still fancy that? The answer to that is because we're building the biggest pool ever! The country pool is powered by a crypto called maybe "Asian Stacks" and it's primary function is being a country currency, which means, it's a functional means of trade right?
In a world of trade, where transactions in millions to billions are made every damn day, it's only inevitable that there's going to be a load of transactions higher than 1 billion dollars in a year! Upon which each transaction has a little fee of let's say 0.02%? Or 0.05%?
That's a relatively small value, looking at its little effect on tiny trades, but it adds up to a ton when you sum the total day trade.
Let's say 10,000 people make a total day trade of $100,000 each and the fee is 0.02% each, this sums up to $6 million in a month where each person spent 20$ each day, which a person transacting that much wouldn't care. In a year we're looking at $72 million! If this number is increased to 1 million people, then we're looking at $600 million a month and $7.2 billion a year.
With a revenue this big, 30% is just around $3 billion, and $4 billion is being shared to people who have locked up their funds as a security to the nation!
The $1 billion initially allocated to the pool is only but to kick start operations, further yields are directly drawn from daily country trade activities, where the trade taxes are being allocated to the citizens helping secure the country's currency!
Does it even end here? Let's not forget that each pool could have a deposit and withdrawal fee, meaning that inevitably, each time a deposit is made, the protocol earns more money to distribute, and the network keeps growing!
This not only makes the nation stand out, it makes it a business hub and many companies would be willing to build projects from there, considering the economy it runs on. Such currency would be powerful because giving 70% of taxes back to the people isn't just awesome, it's powerful!
This is what comes with cryptocurrencies, the earlier governments figure this out, the better. Even 30% for the people and 70% for the government would still attract investors!