City3
City3 paired community-based Web3 education with the development of a community currency—OAK—for the Oakland area with the goals of local value circulation to support small businesses and local community causes.
Website: https://www.city3.community/
HQ: Oakland, California, United States
Active Markets: California
Problem Addressed
Local communities need infrastructure for community development, growth, and support projects. Relatedly, small businesses within these communities are subject to transaction fees that erode profit margins and result in value exiting the local economy.
Project Description
For City3, local community value challenges could be addressed with blockchain tools, such as digital token participatory funding mechanisms and digital community currencies. The organization held Web3 onboarding workshops, worked in partnership with local organizations and nonprofits to develop participatory budgeting and governance models using blockchain technology alongside Gitcoin, provided digital merchandise at local events, and worked to develop a community stablecoin currency to support local businesses and economies.
City3 consistently centered the community in the development and outreach of their project. Contrary to approaches by other city-funding Web3 projects, City3 did not involve city figureheads in the early development of their projects, choosing to instead focus on building relationships and education with community members.
Business Data
Status: Undetermined
Constituency Served: Small business owners, general public
Networks: Polygon
Known Investors: N/a
Additional References: N/a
Progress to date
City3 partnered with Gitcoin in the summer of 2022 to develop a quadratic funding pilot for local nonprofits in Oakland. Quadratic funding is an experimental approach to funding and participatory democracy that matches allocations by the number of donors instead of the amount donated. Nonprofits that participated in the pilot included initiatives for mentoring young Black men seeking careers in tech, providing services and economic empowerment for houseless communities, meal programs for vulnerable communities in the Oakland area, community care and food access for gang-impacted youth, the transformation of local walls into artistic murals and landmarks, a facility that provides space and resources for artists and creatives in Oakland, and a direct outreach and support organization for individuals and families impacted by community violence.
As of April 2024, City3 had not issued any new projects or publicized events since November 2023.
Business Model
City3 had planned to generate revenue to the community treasury through a 0.5% network transaction fee.
Traction
By 2022, City3 had on-boarded over 1,100 individuals to Web3 wallets, with 60% representation from people of color.