Venezuelan own cryptocurrency, Petro, presale will go live March 1, 2018 with about 38.4 million (out of 100 Petros ordered by Nicolás Maduro) going to institutional investors in a month-long presale.
The presale will be private, obscuring the potential discounts the country offers investors, Bloomberg reports.
Reports had it before now that Venezuela would offer institutional investors a discount of up to 60 percent, and a final draft of the Petro whitepaper claims the transactions will be private. After the month-long presale, the Petro will be sold to the public at decreasing discounts, to stimulate early demand.
The public sale takes off right after the presale is over, and 44 million Petros is expected to be sold.
It will feature four levels of small discounts for every 5 million Petros, until a final 24 million tokens are sold at roughly $60 each. Its price is based on the Petro being backed by the country’s oil reserves, although there is no way to trade the Petro for the crude.
The rest of the tokens will be held by the Venezuelan Superintendence of Currency. The Petro will be premined, although the whitepaper claims the government may introduce a proof-of-stake model.
“This is the moment to accelerate the entry of the Petro, to have faith in what we’ve created, and in the technological and intellectual capacity of our country. The Petro will have a great impact in how we access foreign currencies for the country and in how we obtain goods and services that we need from around the world,” Nicolás Maduro said on state tv
Venezuela says its Petros will be accepted as payment for taxes and fees. According to the cryptocurrency’s whitepaper, its value in these transactions will “use as a reference the price of the barrel of the Venezuelan basket of the previous day with a percentage discount.”
Above all, the token may be incorporated into the “card of the fatherhood,” a state identification used to claim subsidies and foods from the government.
Petro to be backed by Ethereum-based ERC-20
Petros cryptocurrency’s whitepaper reveals that it will be an Ethereum-based ERC-20 token, using PTR, as the ticker, which will be divisible into 100 million parts, with its smallest unit, worth 0.00000001 PTR, being called a “mene.”
It may be listed on decentralized exchanges, and if the hard cap is reached, Venezuela may raise nearly $5 billion, over 5% of Ethereum’s market cap.
More than half of the funds (55 percent) raised through the token sale are set to go to a sovereign fund, while 15 percent will be used to develop technologies in other areas, while an additional 15 percent will be used to develop the Petro’s ecosystem, while the final 5 percent will fund the Petro’s development.
The Venezuelan government is promoting the Petro abroad to developing countries and allied nations, and via the state-owned oil producer Petroleos de Venezuela.