As I have noted before, Florida is one of the most crypto-friendly states in the Union, and Miami is the most crypto-friendly city in Florida.
Miami’s mayor Francis Suarez made headlines by mining cryptocurrency to raise city revenue and then paying dividends to citizens who staked the city’s coin, Miami Coin (MIA).
Miami Coin not only generates revenue for the city and passive income for residents, but it could also raise civic engagement.
How the System Works
MIA was issued in June 2021; it runs on the Stacks (STX) blockchain, which enables smart contracts and decentralized apps to operate on Bitcoin.
The coin is mined when 20 wallets agree to signal activation after a contract is deployed. Afterward, STX tokens are forwarded from the miner into smart contracts in a Stacks block.
70 percent of mining rewards go to the people who chose to stake the coin, and the rest goes to the city, who converts it to dollars. This revenue can be used by the city to fulfill its civic obligations without having to raise taxes.
Is it Effective?
From August to November of 2021, the city raised over $29 million in revenue. At first glance, this looks like a big win for Miami and Miami Coin.
But the market correction in February dropped Miami Coin’s value. Before the market correction, the city had an equivalent of $29 million in its wallet, but that value more than halved to $13 million.
Still, the city managed to cash out $5.25 million, which it will use to improve city services and lower taxes.
Miami Coin Gives Floridians a Stake in City Government
Miami Coin does more than validate smart contracts and raise revenue.
When you own real property, like a house, farm, or ranch, you own a piece of the country. Such people are more likely to be civic-minded because they have a vested interest in the nation through the land they own.
Owning Miami Coin amounts to the same thing, but on a digital level.
It allows ordinary citizens to own a piece of the city when they stake their coins. If you own a stake in something, such as a city, you are more likely to care about the goings-on in local government and be more civic-minded.
It’s a win-win for everyone.
The city gets another stream of revenue, businessmen get a useful service, and the stakers get a return on their investment along with a stake in the city.
Consider that against Dead Possum County in Texas, my home state, where the county levies as much property taxes as it wants. Worse yet, it does so regardless of whether property owners can pay it, and it does bugger-all with the money.
And of course, those who do not pay property taxes remain civically unengaged.
More cities should develop their own coins as Miami has done. By doing so, they can provide a useful service, generate revenue, and help their citizens become more civic-minded. The end result can only be more prosperity for everyone living in the vicinity.
Thinking about making a move? Slip on your sandals and check out why Florida has become the most crypto-friendly state.
Speaking of owning a piece of the digital landscape, now is the right time to look into how Real Estate is Going On-Chain.