Miami to Give ‘Bitcoin Yield’ From MiamiCoin to Its Citizens | Crypto Craft

  • Miami to Give ‘Bitcoin Yield’ From MiamiCoin to Its Citizens

    From coindesk.com

    The city of Miami will soon give out a “bitcoin yield” to its citizens from the staking of its cryptocurrency, Miami Mayor Francis Suarez announced on CoinDesk TV Thursday morning. “We’re going to be the first city in America to give a bitcoin yield as a dividend directly to its residents,” Suarez said. The yield comes from the staking of the city’s own cryptocurrency, MiamiCoin, which was introduced early this year and has already earned over $21 million in the past three months for Miami. Suarez noted that if you were to annualize that revenue, it would equal roughly one-fifth of Miami’s total annual ... (full story)

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yieldjunkie
Nov 11, 2021 11:46am
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I'm still at a loss for how Miamicoin works. Here's my best guess and if anybody knows better please correct me:

1. You buy STX with USD and deposit it into the Miamicoin smart contract, where 30% of the STX value goes to the city and the other 70% is returned to you as MIA (Miamicoin.)

2. You take your MIA and stake/deposit it into a 2 or 24 week CD equivalent (minus the federal insurance) to accrue interest in STX, which is returned at the end of the period along with your MIA.

3. You then stake that STX (per Miami's suggestion in this article) for what seems to be another 2 or 24 week cycle to get paid at the end in BTC interest plus your original STX.

So at the end of this process you have MIA coin, STX, and BTC:

The MIA coin has no current utility but in the future might offer you "access control to digital or physical spaces, businesses offering discounts or benefits to people who “stack for their city.”

The STX token is good for...building dapps?

The BTC is the product of the yield on your STX which was the yield on your MIA which was 70% of your initial USD deposit into STX.

Why not just stake BTC, donate to city projects which you see useful, and cut out the complication and transaction costs littered throughout this convoluted process? I find it hard to believe that the APY on MIA is much better than that on BTC when you consider the watering down of your initial investment paired with the inability to stake for two consecutive periods at a time.
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g-force
Nov 12, 2021 3:26pm
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It's been awhile but I remember reporting on Miami CAFRs about 10 years ago. Their muni bonds didn't always get the best ratings. They often were alleged to contain, or found to contain shenanigans.

Example that comes to mind: https://www.sec.gov/news/press-release/2013-2013-91htm & https://www.sec.gov/news/press-release/2013-130.

I won't be surprised if they are up to more tricksies with their new toys.
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Goat
Nov 11, 2021 5:13pm
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Thanks for the breakdown YJ. Sounds like MiamiCoin is just another step by a drunken crypto industry.
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