The dividend will be earned by staking MiamiCoin.
The City of Miami has announced that every resident with an eligible wallet will receive dividends in bitcoins.
“We’re going to be the first city in America to give a bitcoin yield as a dividend directly to its residents,” Suarez, Mayor of Miami, said in an interview with CoinDesk on Thursday.
The bitcoin dividend will be earned by staking MiamiCoin, the digital currency of Miami.
MiamiCoin was developed by CityCoins Inc. and launched in August. It was formally adopted by the City in September. Whenever MiamiCoin is mined, 30% of it is deposited into the wallet of the City of Miami. It funds the municipal projects of the City.
Residents do not have to own any MiamiCoin to be eligible for the bitcoin dividend.
“We’re going to create digital wallets for our residents. And we’re going to give them Bitcoin directly from the yield of MiamiCoin”, explained Mayor Suarez.
The City has to first define who is an eligible ‘resident’.
In roughly 3 months MiamiCoin has earned over $21 million. Projected annually, the earnings can be between $60-$80 million, around one-fifth of the annual tax revenue of the City of Miami of $400 million.
Suarez added that if MiamiCoin’s value increases 5 times, theoretically, the City could run without taxes. At the time of writing, MiamiCoin’s price was $0.023751 as per TradingView.
Miami is positioning itself as one of the crypto hubs. It hosted the 2021 Bitcoin Conference. The City also wants to attract major crypto companies and host their headquarters.
San Francisco has been the traditional technology hub of the United States; Miami is giving it a tough challenge when it comes to the crypto industry.
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