Cityuptake Overview
An explanation of how Cityuptake (CU) works [Updated: June 10, 2020]
Why hold Cityuptake?
The Rewards
CU is held by serious TRX holders looking for a solid, reliable, passive income stream from the TRX they are holding. CU sends out daily TRX to its verified holders from the Super Representative Portfolio and weekly rewards from a trade desk¹ established through the fee from each purchase. CU has sent out over 26 million TRX to date to its roughly 120 holders. The chart below illustrates the rewards for a holder of 25K CU purchased on January 1 of 2019.
The purchase price for the 25,000 CU is 33,750 TRX so the break-even point occurs around the 6-month mark. Every CU is backed 1:1 by TRX and can be redeemed at any time. For people who have been holding since 2018, CU has been a very lucrative hold.
You can visit our cityuptake.app and see the rewards history of our 100K founders’ wallet which has held 100,000 CU from the beginning of the project. We also provide a list of rewards via a google sheet for quick reference. Looking through the google sheet can provide a real sense of why people hold CU. You can also visit our analytics page to see simulations prepared by one of our analysts.
The bulk of the rewards are the result of the activities of the diversified trade desk. Currently valued at over 13 million TRX, the desk trades BTC, ADA, XRP, TRX, and other cryptocurrencies on a daily basis using technical analysis that identifies trends and capitalizes on price volatility. Rewards are not guaranteed but the desk manager has consistently managed to gain about 3% each week on the total value of the desk to share with CU holders which translates to roughly 300K TRX shared each week. See the rewards history chart below.
The SR portfolio, currently freezing over 47 million TRX, generates an additional 14,000 TRX that is airdropped nightly to verified holders.
The Safety
Every CU is fully backed by TRX. The price of each CU is 1.35 TRX with the following allocations:
- 1 TRX gets allocated to the SR portfolio to support the SR Rewards and the 1:1 guaranteed redemption value.
- .25 TRX gets allocated to the Trade Desk to support TD rewards
- .1 TRX for project fees
This model is fully sustainable as new purchases increase the amount actively traded in the Trade desk and support higher rewards. The chart below illustrates how the rewards have increased as the circulating supply of CU has grown.
The Trade Desk is now valued at over 13 million TRX and does not need any new injections to continue rewarding current holders. If no one bought another CU, the average rewards would remain tied to trade desk performance only. This needs to be said to dispel any notion that CU is one of the common ROI scams endemic in the cryptocurrency arena. We abhor those scams and steer our holders away from them.
One can safely hold CU knowing that it can always be redeemed for 1 TRX on demand while benefitting from the reliable weekly flow of rewards from the Trade Desk activity. This TRX is put to work in the SR Portfolio voting for worthy Super Representatives operating nodes on the TRON Network. The rewards generated from freezing and voting are shared each night with all verified CU holders. Currently, the roughly 47 million frozen TRX results in 14,000 TRX shared each night.
The Compliance
Cityuptake takes compliance very seriously and has gone to great lengths to ensure it meets the rigorous standards of US regulations. The benefits of CU are only available to verified holders that have completed a KYC process and rewards are subject to withholding based on US Tax treaties with partner countries. You can see a tax overview here.
A dashboard was created in the cityuptake.app to track rewards and provide a cost basis to assist holders in meeting their tax requirements. Cityuptake is taking the steps required to meet regulatory scrutiny including being a registered Corporation in the crypto-friendly state of South Dakota. Additional links to IRS pages will be provided below.
No Bias Towards Early Adopters
There is no special benefit received by people who purchased CU six months ago vs someone who might buy tomorrow. The rewards sent from CU are shared in proportion to one’s CU stake percentage. In fact, new purchases have a short-term effect that is negative for all other holders as the rewards must be spread over a larger number of CU tokens. This effect is attenuated by the fee model that sends .25 TRX from every CU sold to the trade desk increasing the trading power and thus the weekly gains if the desk manager hits the weekly average targets. The chart below illustrates how the model limits dilution.
The 100K wallet above represented over 78% of all CU in circulation in the early days of the project. As other people began buying CU, the stake percentage plunged to less than 1%. However, the weekly rewards received vary according to the weekly performance of the trade desk, not the stake percentage. This fairness is the result of the pricing model in which the price remains constant at 1.35 with .25 TRX contributed to the trade desk regardless of who buys, team members included.
How to Buy (Learn How)
CU employs an agent model to assist in building out the platform. All agents have undergone KYC verification and come from various backgrounds such as education, business development, and other fields. To purchase CU, one simply sends TRX to an automated exchange of the agent of their choice and CITYUPTAKE tokens are returned. A 1,000 minimum purchase is required each time our exchanges are used.
Holders are required to complete a KYC process to become verified. This is done in the cityuptake.app.
Additionally, a W-9 for United States citizens and a W-8BEN for Non-US citizens are provided to ensure the proper withholding in accordance with US Tax Treaties is applied.
Once these forms are completed, one merely holds the CITYUPTAKE in their Tron wallet of choice and enjoys the rewards that are dropped each week. We do encourage our holders to stay engaged and follow updates and lively discussions in our telegram channel.
Besides earning great rewards, our goal is to strengthen and further blockchain development. We will be adding partner tokens to the lounge to assist other TRX companies meet their regulatory requirement. Learn more by joining our Telegram channel and start putting your idle TRX to work.
Website
Friendster.IO
Telegram
Telegram Announcements (See recent rewards info)
Twitter
Drop Wallet
¹The Trade Desk is built via fee with purchase, and owned and operated by CITYUPTAKE.
²Trade Desk rewards are never guaranteed. The average is a history of past rewards and not a predictor of future rewards. CITYUPTAKE is a utility token that provides a voting service for its members.
³Run your own numbers by downloading the excel
⁴IRS page for US Holders: https://www.irs.gov/pub/irs-pdf/fw9.pdf
⁵IRS page for Non-US Holders: https://www.irs.gov/pub/irs-pdf/iw8ben.pdf
