This article has been written by our guest writer 7de9 (@7de9pk). Because of his expertise in masternodes and his ability to understand and translate the Spanish Petro Whitepaper, he is keeping a close eye on the crypto developments in Venezuela.

New whitepaper, new dates and maybe masternodes?

Petro $PTR will be the new currency of the Venezuelan government, or that is what was announced by Venezuelan President, Mr. Maduro on Monday, October 1st. Initially, it was going to be an ERC-20 token based on Ethereum, later it was rumored to be based on NEM, and now it seems that it will finally be a copy of Dash.

Joseph Zhou, an Ethereum developer, makes clear that any part of the Petro's White Paper is a direct copy of Dash. He states on Twitter: "Lol Venezuela's new Petro token is a blatant Dash clone (at least the whitepaper, page 11)".

According to the latest whitepaper version, Petro will be POW + POS, and 5,000 $PTR will be needed to deploy a Masternode. Other technical details are listed in the following table from the whitepaper.

tabla-petro

The state will keep 51% of the initial Petro's emission. There will be 100 million total, and the other 49% will be sold. The reward distribution will be 85% for Masternodes and 15% for PoS. The reward amount per block is unknown, although in the table above we can see a return of 0.01%.

How much is a Petro worth and why?

Initially, one Petro is equivalent to $60, and the sale value will represent its price in the international markets of the Venezuelan natural resources that belong to the basket that will back the Petro. This basket consists of:

  • 50% Oil.
  • 20% Gold.
  • 20% Iron.
  • 10% Diamonds.

The Venezuelan government states in the Petro whitepaper that, although the total number of Petros is finite, they have the right to make new emissions backed by their reserves within ten years. This level of ambiguity shows how unclear the process still is.

Where to buy Petro?

According to their website, Petros can be purchased through the government's Official Web starting November 5th, 2018.

Simultaneously Maduro announced that $PTR will be available on the six largest Exchanges in the world.

Petro's use-cases

The Venezuelan government has confirmed that they will promote the use of Petro:

The use of Petro will be promoted in PDVSA, the state company Petroleos de Venezuela S.A., and in other public and mixed companies, as well as national, regional and local organisms and governments.

Some use-cases already confirmed are:

  • Aviation gasoline and derivatives (Required).
  • Passports issuance or renewal.
  • All Venezuelans will have access to Petro and make international purchases with it.

Side note

The Petro is a coin with a lot of unknown variables. It has changed its technology up to 3 times before being launched, and it is not clear if the supply will be infinite or not. Furthermore, there hasn't been any communication about the general public being able to host masternodes or stake.

It also seems like the Venezuelans haven't put their trust in $PTR, while, for example, Dash wallet downloads are breaking new records in the country and Bitcoin trading volume keeps increasing week after week.

Internationally, only Turkey (openly and publicly), and Russia (less publicly) seem to be the only countries that support it, while the United States government has expressly prohibited it.

Let us know what you think! Is the Venezuelan Petro a scam, or is this a great first opportunity for a country to accept and use crypto on a broad scale?