Stablecoins

Localized stablecoins are the primary medium of exchange within Locale Network. Each City Chain can deploy its own stablecoin, backed 1:1 by USDC reserves.

How Local Stablecoins Work

Reserve-Backed Model

Every local stablecoin is fully collateralized:

Stablecoin Architecture

LOCAL STABLECOIN SYSTEM

Mint

• Deposit collateral
• Receive local tokens
• DAO-controlled rates

Use

• Pay merchants
• Transfer P2P
• Earn rewards

Redeem

• Burn tokens
• Reclaim collateral
• No lock period

Reserve Backing

USDC + Local Treasury Assets

Key Properties

Property	Description
Stable Value	Pegged 1:1 to USDC
Fully Backed	100% reserves, always verifiable on-chain
Local Focus	Designed for regional economies
Programmable	Smart contract-enabled rewards and restrictions

Use Cases

Daily Commerce

• Merchant Payments — Instant settlement, minimal fees
• Peer-to-Peer — Send money to neighbors instantly
• Bill Pay — Utilities, rent, local services

Municipal Services

• Transit Fares — Pay for buses, trains, bike shares
• Permit Fees — City fees with stablecoin discounts
• Parking — Meter payments via mobile

Community Programs

• Local Rewards — Earn for shopping locally
• Data Rewards — Earn for sharing IoT data via L{CORE}
• Grants — Automated community fund distribution

Economics

Fee Structure

Operation	Fee	Destination
Transfer	0.1%	Community Treasury
Mint	0.05%	Community Treasury
Redeem	0.05%	Community Treasury

Treasury Accumulation

Transaction fees fund community initiatives:

• Infrastructure improvements
• Small business grants
• Public services integration
• Developer incentives

Examples

KC Dollar (KCD)

Kansas City's pilot stablecoin:

Parameter	Value
Symbol	KCD
Peg	1 KCD = 1 USD
Reserve	100% USDC
Network	Arbitrum (Pilot)

Learn More

• Local Currency — Detailed currency mechanics
• Economic Model — Overall economic design
• RWA Lending — Lending with stablecoin yields