Venezuela’s Petro Is Actually An ERC-20 Token

Venezuela’s Petro Is Actually An ERC-20 Token

As we have already reported, Venezuela is issuing its own cryptocurrency, the Petro. The 100 million tokens would be sold in two stages. During the pre-sale that is to take place in March, 38.4 million tokens will be available for sale to institutional investors. Bloomberg reports that the pre-sale is going to be private.

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As we have already reported, Venezuela is issuing its own cryptocurrency, the Petro. The 100 million tokens would be sold in two stages. During the pre-sale that is to take place in March, 38.4 million tokens will be available for sale to institutional investors. Bloomberg reports that the pre-sale is going to be private.

Some rumors suggest that Venezuela is about to give investors up to 60% discount during the pre-sale. Once the private pre-sale is over, the public sale should be  also available. It is expected that 44 million tokens are to be sold. The official white paper claims that Petro transactions are private.

During the public sale, every 5 million Petros would have a small discount until 24 million coins reach the price of approximately $60. As you already know, the Petro is backed by the country’s oil reserves though investors are not allowed to exchange coins for the actual petrol.

The Venezuelan Superintendence of Currency will keep the 17 million tokens left. The whitepaper suggests that proof-of-stake protocol may be introduced at a later stage. Initially, Petro tokens will be pre-mined.

President Maduro expressed his enthusiasm on the national television on the cryptocurrency. In his own words, the petro would ease the access to foreign currencies, goods, and services. He stated his belief in the technological and intellectual potential of Venezuela.

Furthermore, citizens could pay taxes and fees with the Petro tokens. The protocol of the cryptocurrency may be integrated into the “card of fatherhood”. This is the country’s ID system that helps citizens claim subsidies and food from the state.

According to the Petro whitepaper, the currency is an Ethereum-based ERC-20 token. The tiniest unit would be 0.00000001 PTR, named “mene”. We should even expect the integration of petro in decentralized exchanges like EtherDelta and IDEX. If Venezuela manages to sell all tokens at $60 each, it may raise well above $5 billion.

What happens with the funds raised? 55% of them are going to a sovereign fund; 15% will fund the development of other technologies; the development of the Petro ecosystem will utilize another 15% and the last 5% will support the Petro development.

The state is actively promoting its crypto to allied nations and developing countries.

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