Stacks Ventures project incubator has approved 11 firms which will make CityCoins project more appealing to politicians. CityCoins is a project that allows partnering local governments to establish their own cryptocurrency on Stacks. Local governments get CityCoin incentives and stake the asset to receive further Bitcoin benefits as part of the partnerships (BTC).
Stacks Ventures is a $4 million fund dedicated to initiatives based on the Stacks (STX) Bitcoin layer-2 smart contract platform. Stacks Ventures will incubate 11 initiatives that add wireless networking, Web 3, gaming, non-fungible tokens (NFT), decentralised autonomous organisations (DAO), education, and decentralised finance (DeFi) features to CityCoins in its second cohort of 24 projects.
Cities that use CityCoins are compensated with 30% of the fees paid in STX by 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 them 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. According to its founder, Patrick Stanley, the new startups working on CityCoins will help it achieve its aim of “increasing the health, wealth, and happiness of cities and citizens wherever it’s activated.” He does, however, want a stablecoin for the project in the end.
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 now have to protect their citizens against inflation. Wouldn’t it be great if they could do that through a stablecoin that earns Bitcoin yield? “
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.
Regardless of how it happens, Stanley believes that as crypto becomes more familiar and accessible, everyone will have it sooner or later. One of the new firms to join Stacks Ventures is a company focusing on education, which might help educate the general public about Bitcoin.
