The City of Miami received its first Miami Coin payout this week. Francis Suarez, America’s Crypto Mayor, wasted no time in allocating that money. Suarez has decided to apply the payout into an area that will provide immediate relief in an area where Miamians are currently suffering, rental price increases.
This is unfortunately an area where help is sorely needed. The Magic City saw its average one-bedroom rental increase in price over 35% in the last year to +$2,200 per month. With so many moving to Miami due to its rapidly growing innovative workforce, low taxes, and the state of Florida’s resistance to tyranny, the influx of new citizens is putting strong upward pressure on home prices. Suarez sees this as the best use of funds from Miami Coin, and its hard to argue otherwise.
Suarez is able to provide this relief to renters thanks to revenue generated from Miami Coin, the first City Coin and part of their growing ecosystem. After receiving the city’s first disbursement from Miami Coin, Mayor Suarez tweeted:
It was a “historic moment” not only for the city of Miami, but for New York City and the hundreds of other potential cities across the United States that will eventually take part in this massive innovation. The Block Crypto provided a quick summary, of what City Coins does and how it accomplishes this on the Stacks protocol:
CityCoins is a smart contract that exists on the Stacks network, allowing users to mine their city’s coin by sending STX to the dedicated contract. A portion of the mining funds are sent to a city wallet, which the city can use as it sees fit, pending legalities. The rest is distributed among city token holders who choose to “stack” or lock their tokens.
CityCoins announced mining would begin for MiamiCoin in August of 2021, marking the first of the city-based tokens to launch. It has generated more than $22 million for the city of Miami, although that price regularly fluctuates with the price of BTC, since the wallet is denominated in STX. With the recent $5.25 million disbursement, the wallet is now sitting at $15,732,488.75.
The City of Miami has massively benefitted from its partnership with City Coins. Remember, they have raised a total of ~20 million $USD and in order to receive the most recent Miami Coin payout, Miami did not need to authorize any new taxes, or set up toll bridges across Biscayne Bay. They simply accessed their custodial wallet to receive the funds. None of this was strong armed from citizens. All of this money came from investors, the majority of whom are optimistic about the economic future of Miami. City Coins allows municipalities to rake in money from investors, regardless of their physical proximity to the 305.
Moving forward, Suarez has alternate options for the remaining money in the custodial wallet. He could continue to stack the STX in the wallet to earn a Bitcoin payout, which he could then airdrop to his citizens. Should investor money continue to pour in, eventually, Miami could become a tax-free city.
Either way, Suarez should be applauded for his vision of assimilating the power of cryptocurrencies and for finding a way to enrich Miamians without raising a single cent of new taxes.
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