41-180. Bitcoin and digital assets reserve fund; definitions

304 words·~1 min read·/az/title-41/41-180

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. The bitcoin and digital assets reserve fund is established consisting of any airdrops, staking rewards or interest earned as prescribed in section 44-308, subsection D. The state treasurer shall administer the fund. Monies in the fund are subject to the legislative appropriation. The rewards received from staking the digital asset may be in the form of digital assets.

B. On approval of the legislature, the state treasurer shall deposit, pursuant to sections 35-146 and 35-147, ten percent of the digital assets held in the fund in the state general fund. The legislature may not deposit bitcoin in the state general fund.

C. For the purposes of this section:

1. "Airdrop":

(a)Means to issue a unit of a digital asset that is distributed in a broad, equipped and nondiscretionary manner based on conditions that are capable of being satisfied by a participant in a blockchain system as incentive-based rewards, including any of the following:

(i)To users of a digital asset or any blockchain system to which the digital asset relates.

(ii)For activities that are directly related to the operation of the blockchain system, including mining, validating, staking and any other activity that is directly tied to the operation of the blockchain system.

(iii)To existing holders of another digital asset in proportion to the total units of the other digital assets that are held by each person.

(b)Does not include an exchange of more than a nominal value of cash, property or other assets.

2. "Digital assets" means any of the following that confers economic, proprietary or access rights or powers:

(a)Virtual currencies.

(b)Cryptocurrencies.

(c)Any other digital-only assets.

3. "Stake" means committing digital assets to a blockchain network to participate in the blockchain network's operations by validating transactions, proposing and attesting to blocks and securing the network.