David Puell Profile picture
Oct 4, 2018 23 tweets 3 min read Twitter logo Read on Twitter

1/ "Towards the Digital Economic Revolution."
2/ The whole text reads like a mixture of leftist Latin American dictatorship propaganda ("imperialist," "hegemonic") and and run-of-the-mill ICO marketing scheme ("interconnection," "without third parties").
3/ It claims to feature an original and fully-transparent blockchain backed by Venezuelan commodities as well as a "legal and institutional system
that provides security and judicial guarantees for investing and exchange."
4/ Petro is based on Chávez's vision of a 'hard' currency "as an answer to the hegemony of financial systems that rule over the world." Its objective? To set forth "the democratization of the economy worldwide."
5/ Petro claims to be exchangeable for fiat money and other cryptocurrencies, and its price is claimed to be stable, since it will be pegged to Venezuelan commodities and redeemable for them.
6/ The Venezuelan state will promote the Petro as "an invetment option, a savings mechanism, and a medium of exchange for public services."
7/ "With the Petro, you will be able to...:" (1) exchange for fiat, (2) acquire commodities, (3) make transfers, (4) schedule payments through smart contracts, (5) explore transaction history, and (6) speculate on other cryptocurrencies.
8/ In terms of infrastructure, the Petro ecosystem will feature a website, wallets, exchanges, a mass payment system, and a block explorer.
9/ Petro's six major purported use cases: (a) buying commodities, (b) buying goods and services nationally and internationally, (c) paying taxes and public services, (d) remittances, (e) "banking the unbanked," and (f) "trust" through integrity and robustness (?).
10/ Who's in charge? SUNACRIP, the National Superintendency of Cryptoassets and Connected Activities, which will provide smart contracts that will "allow to regulate the nature of transactions." I shit you not.
11/ Petro will be widely available, it seems, through the Venezuelan Criptoassets Treasury (TCV, an actual corporation) website, OTC, and exchanges, for bolívares or any international currency.
12/ Petro will be pegged to oil (50%), gold (20%), iron (20%), and diamonds (10%), all expressed in USD at starting valuation date (Oct. 1, 2018).
13/ However, the text later specifies, very self-awarely: "If the Petro's value oscillates on par with oil's, we cannot expect it to fullfil its role as a currency, neither to compete with the dollar, the prefered store-of-value instrument of Venezuelans."
14/ Emission follows a pre-mined, scammy ICO model: 3% discount on the first three, with a liquidation value for any international currency subject to a 5% administrative fee.
15/ A national savings plan based on the Petro, called Staking (!), will also be inaugurated, where users will be rewarded with additional petros if their current stake isn't moved from their respective wallets.
16/ Financial incentives are to be centrally set by SUNACRIP. Time periods are variably fixed by them also.
17/ SUNACRIP and the TCV will keep 51% of tokens at all times, with a legal bound. The first emission interestingly also features a 13% allocation towards a mysterious "Petro Development Fund", with an additional 8% towards "ecosystem development."
18/ By "ecosystem," they mean: SUNACRIP, TCV, as well as nationalized exchanges, payment systems, and wallets. Also interesting: they include "users" within this terminology, so expect to see a lot of propaganda through Petro-funded campaigns.
19/ Consensus algo is X11. "Mene" (0.000001 petro) is the lowest unit of account. (Anticipated granular inflation?). 100 million is the pre-mine.
20/ Passive income for staking is of course a feature: 85% to masternodes and 15% for the user in the initial phase.
21/ Even user support will be bureaucratically layered in basic, intermediate, and advanced levels. LOL.
FIN/ In other words, just stick to #Bitcoin.

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