Entrepreneur Christopher Perceptions is hoping to bring a new type of cryptocurrency to the city. Perceptions is partnering with the platform CityCoins, which works with cities to create a unique token for each location. That token allows for both the city and individuals to earn cryptocurrency. Individuals can either hold or trade CityCoins, which represent a stake in the city.
Perceptions, who founded PerceptForm in 2020, is also involved with the Stacks blockchain, which is where the CityCoins platform is housed. The Stacks blockchain allows for smart contracts to be written in bitcoin. Smart contracts are used to automate the back end of various tasks.
“What CityCoins did was created a mechanism where communities have the power to improve their cities while providing crypto rewards to individual contributors and city governments alike,” Perceptions said. “If every city had its own coin, it would allow the cities to become self-sufficient in every way, shape and form.”
[caption id="attachment_536721" align="alignleft" width="300"] PerceptForm founder Christopher Perceptions[/caption]
Those who are interested in CityCoins can earn back cryptocurrency in two ways. They can hold on to their CityCoins in a process called “stacking.” This means after a certain period of time, the CityCoins earn yield through the duration of each reward cycle. Perceptions said stacks allow for the entire network to become stronger, and users are incentivized for locking up -- or stacking -- their CityCoins for long periods of time.
“That’s one low barrier way where anyone can sign up for an exchange and acquire CityCoins and just hold (them) and earn yield,” Perceptions said.
Those who are more tech-savvy can also earn crypto by “mining” CityCoins. Perceptions said bitcoins go through a specific mechanism called proof of work.
“That ‘work’ means, in order for certain things to transact within the network, there needs to be confirmations. Those confirmations happen through miners, (and) miners use various mechanisms to mine bitcoin, and that brings about different bitcoin to blockchain,” Perceptions said.
He said something unique to CityCoins is that they do not consume large amounts of energy when compared to traditional bitcoin mining. If CityCoins did launch a specific MilwaukeeCoin, 30% of the cryptocurrency would be given to the city and 70% would be given to coin holders. Perceptions said the opportunity for anyone to take part in the program and potentially grow their wealth could have several benefits to the city.
“You hear the stories of people stealing cars and it takes a technical know-how to do that. I think this could provide a way for economic gain that would be safe as well as benefit the city. If they can steal Kias with a smartphone and a flash drive, what would happen if they figured out that they can just simply hold MilwaukeeCoin and earn yield?” Perceptions said.
He also highlighted the fact that a MilwaukeeCoin would provide the city with an additional potential revenue stream that city officials would be completely in control of.
“Milwaukee could create a treasury that is something they never would have thought would have appeared, and from that they could build programs. They could say ‘Hey, maybe we do have more funding for mental illness or infrastructure or education.’ All of these different things could come from this technology,” Perceptions said.
CityCoins currently operates in Miami and New York City. The platform is also coming to Austin, Texas.
According to a Washington Post article, MiamiCoin yielded $7.1 million in cryptocurrency to the city last September after launching in August.
Perceptions said he is in talks with the city of Milwaukee to gauge their interest in creating a MilwaukeeCoin.
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