Earlier this week, Venezuela announced the official release of the whitepaper supporting the Initial Coin Offering (ICO) launch of its oil backed, national crypto currency, the petro.
The 22 page whitepaper, signed by Venezuelan President Maduro, has the crypto currency community praising and noting some anomalies peculiar to this government launched crypto.
100 million petro, will be created, with each petro subdivided into 100 million parts, similar to what digital currency investors already familiar with bitcoin’s refer to as satoshis.
Petro’s micro units will be called the mene, a word that means petroleum in the wayuu dialect widely spoken in Venezuela.
The launch will offer a pre-sale of a little over 38 percent of the petro, which is set to occur beginning February 20th. An additional 44 percent of the petro will be offered the following month and the balance will be held by the country’s Superintendency of Currency and Related Activities. There is a hard cap limit set at $4.9 billion for the ICO, which if reached, will be increased.
The country provides further assurances that the petro will be accepted by the government for fees due, including payment of taxes and other government imposed expenses.
Backed by 5 billion barrels of crude oil, the petro was declared illegal with the Venezuelan National Assembly declaring that the currency could not be backed by the country’s oil reserves.
Maduro maintained his focus, by getting the backing of 10 additional nations, offering them discounts of 60 percent for their early investment commitments.
After the initial public sale, no new petro will be issued, a model slightly different from the way that other crypto currencies generate new coins through a proof of work model. The petro model does allow for a proof of stake, however.
With the exception of the US, Petro will be listed on all major global exchanges.
About Jordan Lindsey
Founder of JCL Capital, Jordan Lindsey, has a strong reputation as an expert in finance and crypto currency technologies.
Lindsey is the creator of the Bitcoin Growth Bot and the tutorial for purchasing the Nucleus, NCL, token in his own upcoming ICO pre-sale.
Jordan Lindsey serves as an advisor for Energia Global, located in the San Francisco bay area.