A map, posted on the municipal or county website. You, a private citizen, bid to fill a hole. The city accepts. You upload a geostamped 'Before' picture. You are given a time window to fill the hole (often at night). You fill the hole. Upload 'After' pictures. Get paid in the next cycle.

You take a sledge hammer to the street a block over. Repeat. Profit.

You do a bad job filling the hole. Some hits it and their car breaks. They sue you and the city. The city attorneys successfully push the blame onto you since you're a contractor. You have no liability insurance because you're not a professional because that's the whole point of this thing, right? You're on the hook for the car, a few grand for a medical check-up, and a spurious mental anguish claim. You declare bankruptcy and on the way back from your last visit with your attorney, you hit another pothole and your car breaks. Full circle.

Taking a sledge hammer to a street is a crime.

Yes, it is, and this is a financial incentive to commit a crime.