The Long Story of the LocalCoin.
You live in a small place called Localdon. Every time you choose to walk to work or use public transportation, you earn LocaldonCoins. Each LocaldonCoin is equivalent to one Euro and can be spent at your favorite coffee shop or bakery.
Alternatively, you work for a big bank, Goldbank. You earn Goldies for taking actions aligned with the company’s environmental goals.
Communities come in all shapes and sizes; what matters is that your actions make a difference, and you earn tangible monetary rewards for taking those actions.
Whether in the form of LocaldonCoins or Goldies, these unique currencies transcend the conventional — they represent the spirit of your community, hold purchasing power, and demonstrate your engagement in the community.
From another perspective, LocaldonCoins or Goldies can contribute to community goals by engaging members in collective efforts. These coins support achieving objectives that require collaborative actions, turning small contributions into significant outcomes. LocalCoins can work just as well in any city, company, or community, doing good wherever they are used.
Meet LocalCoins by UrbanChange. Think of them like money, your money.
What are LocalCoins?
LocalCoins are a unique currency designed to incentivize individual actions that help achieve community goals.
- The community has an important goal.
- Community Leaders (could be government officials, Heads of HR, C-Suite executives, NGO project leads, etc.) set up an initiative to address the goal and define actions that would be rewarded with LocalCoins, and how many LocalCoins are earned for each action.
- Community members take actions that contribute to achieving that goal.
- Community members earn LocalCoins as a reward.
- These LocalCoins can then be spent exclusively at selected entities (businesses, services, charities).
The process to take action is simple, intuitive, and fun, thanks to the user-friendly UrbanChange App, which we’ll explore further in the post.
By the way, here’s a short video with UrbanChange co-founder Michael Mazur explaining how one action translates into dollars:
LocalCoins serve as the lifeblood coursing through the veins of the UrbanChange Protocol. They are the connective tissue that links people and goals, conventional budgets, and impact.
In practical terms, when the community has a goal, for example, related to mental health or reducing carbon emissions:
- The UrbanChange App becomes a tool to achieve the goal by establishing an objective, outlining actions, and allocating the budget.
- LocalCoins play a pivotal role, setting the wheels in motion and making the entire process function seamlessly.
To grasp the concept of LocalCoins, it’s crucial to recognize that they hold real monetary value, providing purchasing power. How does this work?
The value of the LocalCoin is attached to the value of USDC. Stablecoins such as USDC, are designed to mimic the value of the US dollar to keep the value stable. This is different from non-stable cryptocurrencies like Bitcoin, which can see fluctuations in value.
LocalCoins — Brief History
The concept of “local currency” has been in existence for quite a while. We briefly explored it in the Twitter (X) thread:
With a quick glance at the post, you may notice a partial list of local coins worldwide:
- 🇩🇪 Chiemgauer — Rosenheim region, Germany
- 🇺🇸 BerkShares — Berkshire region, Massachusetts, USA
- 🇮🇹 Sardex — Sardinia, Italy
- 🇮🇹 L’AltraMoneta — Various locations in Italy
- 🇬🇧 Totnes Pound — Totnes, United Kingdom
- 🇺🇸 Ithaca HOURS — Ithaca, New York, USA
- 🇨🇦 Toronto Dollar — Toronto, Canada
- 🇧🇷 Palmas — Fortaleza, Brazil
- 🇲🇽 Credito — Mexico City, Mexico
- 🇺🇸 City Coins by Colu
Now, you may wonder: What makes LocalCoins by UrbanChange unique?
The Nature of the LocalCoin
Let’s re-emphasize — LocalCoins hold real monetary value.
As previously mentioned, the value of the LocalCoin is pegged to USDC (i.e., a stablecoin). Stablecoins replicate the value of traditional currencies like the US dollar. This ensures a steady value that can be trusted.
In a brief quote, Ortal Tevel, co-founder of UrbanChange, sheds light on the cost of LocalCoins:
In practical terms, LocalCoins function much like a regular currency when used as a payment method, but they come with distinctive features. For example, they are unique: Community members hold Coins that symbolize their community, that are authentic and unique.
Members earn these LocalCoins through initiatives, signifying that each LocalCoin embodies the impact they’ve contributed to the community. It brings people closer, making everyone feel that their efforts truly count.
when we explored how LocalCoins work, we mentioned that they can be spent at selected entities, such as businesses, providers of services, or charities. This means that LocalCoins circulate in a closed-loop economy.
Thus — LocalCoins have a double impact — social impact through initiatives and economic impact through redemptions.
As mentioned earlier, LocalCoins are powered by blockchain technology, bringing about unique and critical benefits. These advantages include fast payments, low fees, and top-notch security.
Here’s a short video where UrbanChange co-founder Michael Mazur discusses how blockchain technology benefits LocalCoins:
How does the Impact of LocalCoins is Measured?
Stable value not only simplifies calculations but also introduces straightforward equations such as €=impact.
Examples of these equations, tailored to specific actions, can be explored on our website or in a post with education-related use cases.
These examples showcase the simplicity of the system:
- €100k = 10,000 hours of beach cleaning
- €250k = 25,000 hours of skill-sharing workshop (e.g., mentoring a colleague or hosting a training session)
- €150k = 10,000 hours of studying (e.g. eco-friendly habits)
Let’s delve a bit more into how it all works.
How do LocalCoins Work?
LocalCoins can be earned and used for payments through the UrbanChange app.
From the perspective of users, businesses, and sponsors, the mechanism is highly intuitive, thanks to the user-friendly app. Let’s explore it from a user’s viewpoint.
As a user, you can access the main Local Community page, as depicted in the first screenshot below.
From the main page, a user can explore:
- initiatives in the community, detailing the actions users can take to earn LocalCoins (e.g., “Pedal Power City,” “Helping Hands”).
- Local businesses that were selected, indicating where users can spend their LocalCoins (e.g., “Maxfruits,” “Coffeeflix”).
Users can explore each initiative, claim LocalCoins if they’ve taken action, and watch as LocalCoins accumulate in their wallets.
With the UrbanChange app, users can easily acquire LocalCoins and spend them. For instance, if a user chooses to spend LocalCoins at MinskSpa, they should simply locate it in the list, click “Pay here”, enter the amount and that’s that (see the third screenshot in the image above).
As evident, the UrbanChange app is designed for easy use. The simplicity of adoption and user onboarding stands out as one of the key benefits of LocalCoins by UrbanChange.
Embrace LocalCoins: How to Start
Are you a City Official? ESG or HR Leader? Or maybe an NGO? Are you curious to delve deeper into LocalCoins and uncover how they could enhance your community, organization, or city?
We invite you to book a demo here and discover its potential firsthand.
Discover UrbanChange:
