Love Miami? Soon, you may be able to buy your own Magic City-themed non-fungible token (NFT) to prove it.
The Miami City Commission on Thursday will vote on a resolution to partner with Time USA Inc. to launch a collection of 5,000 NFTs. The digital collectibles will be designed by local artists, with images that include multiple variations of the Miami city key.
"Time, LLC will work in collaboration with the city to lead the strategy, creative minting, and implementation for the program," states the agreement between the city and Time USA, LLC, the publisher of Time Magazine.
As part of the agreement, the city will work with The Bakehouse Art Complex, a not-for-profit artistic incubator in Miami's Wynwood Arts District, to identify up to 56 artists to design the NFT collection. The organization is focused on addressing the need for affordable housing and workspaces for artists in Miami.
Stored on the blockchain, an NFT is a digital image that represents one-of-a-kind assets, such as artwork. The Miami NFTs will include arts and culture, sports, technology and education themes, according to the text of the agreement.
In addition to the digital collectible, buyers will have access to real-world benefits, such as free admission to Miami museums or a chef's table at a local restaurant.
Time USA Inc. will receive a $513,312 initial fee that will be paid from primary sales, or sales between creators and collectors, of the NFTs. According to the agreement, the city of Miami will receive 50% of revenue and royalties generated in excess of that fee. Local artists will receive 25%, Bakehouse 10% and Time LLC 15%.
Prices have not been set for the collection.
There was an explosion of interest in NFTs in 2021, when digital collectibles from popular avatar collections like CryptoPunks and Bored Ape Yacht Club sold for hundreds of thousands of dollars or more. The cost of an NFT can vary based on collections, with some as low as $150. The average selling price of an NFT is currently $967, according to industry tracker NonFungible.
Like cryptocurrency, the price of NFTs plummeted in recent months and sales dropped off as well: OpenSea, the world's largest NFT marketplace, reports sales volume fell 75% between May and July of this year. On July 14, the New York company announced layoffs for 20% of its staff in response to the downturn.
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