Venezuela’s troubled state crypto, the Petro, won’t allow itself to be forgotten as Venezuelan President Nicolás Maduro announced it is to go on sale to the public on 5 November 2018, a day celebrated by anarchists worldwide.
Maduro also revealed during the announcement that Venezuela has redesigned the Petro and released a new white paper.
The most obvious detail change is Petro’s backing. At first, the token was to be a cryptocurrency backed by Venezuela’s oil reserves, now it is supposedly backed by 50% oil, 20% gold, 20% iron, and 10% diamonds. The government is pre-mining 100 million Petro, 49% of which will go on sale to the public for USD 60 each, and 51% will remain with the treasury. The price is roughly the cost of a Venezuelan barrel of oil, so it is unclear how the gold, iron, and diamonds are factoring into the price. Supposedly, after the sale is complete, the price of the Petro will begin to float with the price of the commodities, as if it’s actually backed by them.
Based on the new white paper, it appears the Venezuelan government is really launching the cryptocurrency this time. Reports in the past have been quite confusing, with the Venezuelan government already saying it was launched and then an investigative report finding out that Petro doesn’t really exist.
The Petro will be a hybrid of Proof-of-Work (PoW) and Proof-of-Stake (PoS) and will have 4 mb block size and 60-second block times. This makes it quite similar to Dash. It will use the X11 algorithm and have masternodes, making it ideal for secure and anonymous transactions, which is what the token needs to be able to circumvent international sanctions.
Additionally, the white paper talks about Petro’s instant send feature, which allows for transactions to be confirmed within five seconds, similar to that from Dash’s code.
The good news from all of this is that the Petro is about to become a real cryptocurrency and it is possible the Petro won’t be printable by the government. The local fiat currency, the Venezuelan bolivar, continues to experience hyperinflation, with roughly 250% inflation since August 2018, according to the Café Con Leche Index.
There is a dire need in Venezuela for a real currency and if the Petro is not printable by the government, it could become quite valuable despite all the controversy surrounding it.
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