Millions of dollars earned from the mining of MiamiCoin could be used to aid locals struggling to keep up with the region's skyrocketing rental prices.
Miami Mayor Francis Suarez said he will ask the Miami City Commission to consider a proposal that would allocate $5.25 million generated from MiamiCoin to the city's rental assistance program. In a series of Twitter posts, Suarez said the program would be available to people who have resided in the city of Miami for at least three years who have seen their rent rise by more than 20% over the last year.
"I'm focused on making a difference, not just a statement – and Miamians need action," Suarez posted.
The assistance program would be open to single people who earn up to $63,313 and families of four with a maximum household income of $90,350.
It's unclear when the proposal could go before the city commission. Soledad Cedro, a communications director for Suarez, did not respond to the Business Journal's request for comment.
MiamiCoin was launched last year by cryptocurrency developer CityCoins, which gifts 30% of all mining rewards to the city of Miami. The proceeds are deposited into a virtual wallet and then converted into U.S. dollars. The city of Miami itself does not hold MiamiCoin tokens or any cryptocurrency.
The $5.25 million payout comes as many cryptocurrencies plummet in value, with Bitcoin recently dropping about 50% from its all-time high. After reaching a high of $0.055 per unit last September, MiamiCoin has lost more than 90% of its value against the U.S. dollar. One MiamiCoin is now worth less than 1 cent, according to Coinbase.
The cost of renting in Miami has surged over the past year, with one-bedroom apartments now renting for an average of $2,430 a month, according to real estate website Zumper. Average residential rents in South Florida as a whole increased 36% in 2021, the highest for any metropolitan area in the U.S.
While Miami is bursting with new development, many of the new buildings under construction are luxury residences that average earners cannot afford. Suarez reports the city has about 37,000 new residential units in the pipeline to address the demand for housing, but he did not specify how many of those new apartments will be affordable housing units.
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