The last few town halls we’ve been discussing how we can stabilize the protocol through a model based on community discussions and feedback.
The original proposal has been split into two separate CCIPs, but encompass basically the same overall vision described in the original proposal.
- Phase 1: Reduce CityCoin Emissions
- Phase 2: Move CityCoin Treasuries to Smart Contract Vaults
- Phase 3: Simplify the CityCoins Contract Design
- Phase 4: Update Registration, Mining and Stacking Flows
Below is a summary of the information presented on the most recent call with links to more details.
Everyone should read and review the upcoming changes before they are finalized for a vote and provide input now!
In order to stabilize the CityCoins protocol, four phases are proposed that work in concert with the overall vision from the community for sustainability. All four phases are included in CCIP-012 and CCIP-013.
In April, the community successfully voted for and implemented CCIP-008.
This change tested stemming the miner arbitrage problem. Results were mixed; arbitrage volume was reduced but is still persistent.
The goal is to reduce CityCoins inflation to 2% annually starting with a vote at Stacks block 74,300.
The vote will run for 2,100 blocks or approximately two weeks, expected to end on Fri. Sept 17th.
Upon successful vote, the change will be implemented by submitting a proposal to the auth contract for MIA/NYC, using the
update-coinbase-amounts function defined in CCIP-010.
Today, CityCoin treasuries are stored in a 2-of-3 multisig Bitcoin wallet. BTC wallets can make STX transfers and stack STX, but cannot interact with smart contracts.
Phase 2 will replace the multisig wallet with a smart contract vault secured by a DAO implementation that can grow with the protocol.
The initial DAO structure would start with the same 3-of-5 signers from the auth contract to instantiate the DAO, enable proposals, and provide temporary veto/execution.
Using this DAO structure, proposals would be created and executed in order to:
- Create treasuries for existing cities
- Stack treasuries for existing cities
The next two phases implement two main changes to simplify CityCoins protocol design and bring ownership and execution of CityCoin contract updates into the DAO established in Phase 2.
This phase consolidates the CityCoins core contract design for all cities and would be implemented and executed by the DAO established in Phase 2 to take ownership of the protocol.
- The current design allows each city to grow & change independently of the core protocol, with the intent that each city would eventually manage their local deployment
- This prioritized customization at the city level but also led to some unforeseen challenges
- To form a more cohesive protocol & consistent experience across CityCoins, and reduce the overhead for protocol upgrades & maintenance, this could be simplified into a structure that takes advantage of the DAO created in Phase 2.
This would provide the following benefits, outlined in more detail with examples in CCIP-013.
- a central contract for all users to register, where one address = one user ID for the entire protocol
- generalized mining and stacking contracts that track data for each city, creating consistency across all implementations
- sets up the infrastructure for DAO-led protocol changes that can be proposed, executed, and implemented for all cities in the protocol
There would still be one token contract per city, and contracts for each of the city’s respective vaults. These future contracts would also be implemented by the DAO.
In addition to the overall protocol changes above, this phase implements a change to the value flows in mining and stacking, such that:
- 100% of STX spent mining CityCoins is transferred to the city’s treasury
- 100% of the STX within the city’s treasury are stacked for xBTC rewards
- 100% of the xBTC rewards are claimable by anyone who stacks CityCoins, such that:
- rewards are distributed per cycle
- rewards are distributed proportionally to the amount of CityCoins stacked
- if they are not claimed within 2 cycles, they can be claimed by the DAO? (open for discussion)
For more information or to track the overall progress of the implementation, please see the CCIP-012 / CCIP-013 Remaining Work Items.
2022/08/10 Town Hall
2022/08/17 Town Hall
2022/08/25 Town Hall
Anyone is welcome to comment and join in on the fun!
This CCIP was drafted based on continued feedback from the community, whether it was in the Discord #path-forward channel, here on the forums, or discussed in our weekly meetings.
Below are a few quotes from other forum posts that felt in alignment with the proposal here, and a huge shout out to @logan723’s path-forward post and proposal. My hope is that this proposal sets a strong foundation to start building toward the vision set there and in ideas like @BowTiedMooneeb’s decentralized city activations.
Let’s keep building!
“Continuous effort, not strength or intelligence
is the key to unlocking our potential.”
edit: added link to presentation from the town hall
edit: updates in line with 2nd town hall announcements
edit: added links for second town hall resources
edit: added links for 3rd town hall, latest CCIP details and links