EXECUTIVE SUMMARY
The petro (PTR) has its origin in the idea of President Hugo Chavez in creating a strong currency backed by raw materials. Its antecedents go back to proposals of financial and monetary coordination
before the hegemony of the US dollar, which resurfaced after the financial crisis of late
of the last decade.
Block chains allow the transfer of value and information, dispensing with third parties. They also provide
the tools to successfully face the challenge of creating trans-financial platforms and instruments
parentes, efficient and inclusive.
The Petro will be a sovereign crypto-active backed by oil assets and issued by the Venezuelan State as
spearhead for the development of an independent digital economy, transparent and open to participation
Direct from citizens.
It will also serve as a platform for the growth of a financial system more
fair and that contributes to development, autonomy and exchange between emerging economies.
Venezuelan oil assets will serve to promote the adoption of cryptoactives and technologies based on
the chains of blocks in the country. The State will promote and encourage the use of Petro in order to consolidate it
as an investment option, savings mechanism and means of exchange with the services of the State, industry,
commerce, and citizenship in general.
The Venezuelan population will have at their disposal a technology that will allow them to enjoy the advantages of having with a reserve of value and means of robust payment to stimulate savings and contribute to the development of the country.
the Petro will be an instrument to provide economic stability and financial independence of Venezuela, coupled with
an ambitious and global vision for the creation of a freer, balanced and fair international financial system.
INTRODUCTION
The adoption of blockchain technology (blockchain) in the global market is not simply a temporary trend or fashion, but a firm and continuous change towards a future in which the management of finances personal, institutional and potentially state-owned will become easier, direct, fast and transparent.
Two of the applications of this technology, cryptocurrencies and tokens, stand out in popularity. These instruments are convenient for a global society because they allow greater efficiency, speed and freedom
in all types of transactions, especially in international trade.
Its use has generated a universe of opportunities that have the potential to alter business practices
conventions, especially in industries based on intermediation for exchange or verification, such as
finance, commerce, manufacturing and even in areas of human knowledge that are accustomed to adopt
Technological innovations in longer terms, such as law and politics.
Its use has generated a universe of opportunities that have the potential to alter business practices
conventions, especially in industries based on intermediation for exchange or verification, such as
finance, commerce, manufacturing and even in areas of human knowledge that are accustomed to adopt
Technological innovations in longer terms, such as law and politics.
The development of the cryptoactive ecosystem is based on the revolutionary idea of technological substitution
of trust. The model of work on which they are based emerged as an ingenious mechanism that
It combines networks, computational power and collaborative work incentives to guarantee the integrity of the
information, traceability and transparency in exchanges. Additionally, since it places directly in
the hands of people managing their financial resources, poses a different approach to security
in electronic finance.
However, despite the inherent advantages of block chains, until now there are only projects,
ideas and aspirations to create cryptocurrencies with the backing of a sovereign state. With the Petro, Venezuela
aspires to become the global leader of an economic initiative that allows to take advantage of the value of its resources
minerals in an innovative way, by developing and promoting the adoption of a cryptocurrency in the country.
The Petro bursts with a promising perspective taking advantage of:
- The early maturity of blockchain technology
- A market of more than thirty million people eager for savings instruments, investment and international exchange
*A world-renowned oil industry
*The participation of allied governments and enthusiastic promoters of cryptocurrencies for the development of a new economy around the world.
The Petro will have the ability to overcome blockages, delays and limitations of the traditional financial system, favoring the growth of a new economic ecosystem based on trust, integrity, transparency, efficiency and speed guaranteed by blockchain technology.
The purpose of this document is to describe the technical foundations of Petro's development as an instrument of exchange, savings, investment and as a technological platform. The bases are laid down below socio-economic factors that inspire the development of the instrument, the structure of the global market and national in which it will be used, the emission method and policies that will consolidate its use.
BACKGROUND
Following the imposition of the US dollar as the international currency of support and the subsequent
Substitution of the gold standard by the fiduciary model, the global economy has suffered from uncertainty and instability as a result of the base in a currency without backing, which has been particularly harmful for emerging economies.
Since then, the need to strengthen domestic markets and avoid dependence on unilateral decisions made in the major power centers to stabilize economies has been recognized. From there they have emerged
different proposals to support national currencies with the most valuable natural resources of the
countries -Many times located in emerging economies-
Perhaps, the most well-known case is that of Bancor, the international stable price unit, proposed
initially by John Maynard Keynes and other leading economists, with the aim of safeguarding the
global monetary system against balance of payments crisis and exchange rate instability.
In 1969, special drawing rights appeared
-SDR-, supplementary reserve assets and unit of account created by the IMF and based on claims on a basket of currencies (currently USD, EUR, GBP, Yen, and Yuan). More recently, after the 2008 global financial crisis, initiatives such as the Sucre -unit of account and value of the ALBA countries- and proposals from China and the countries of the Association of Nations of Southeast Asia (ASEAN).
The combination between this historical background and the international recognition of the enormous potential of
the new technologies, supports the idea of Petro as an international currency developed and promoted by
an emerging nation for the development of a decentralized, more egalitarian, inclusive global economy
transparent.
TECHNOLOGICAL FUNDAMENTALS
CHAIN OF BLOCKS:
An articulated or block chain is a public ledger that can record transactions between two parts efficiently, verifiably and permanently. This allows the technological substitution of trust to through the collaborative work of an electronic network whose nodes respond to diverse interests, which are aligned to guarantee the efficiency of the system by means of clear rules and incentives granted by the same network.
The block chain organizes the information in the form of blocks, which are verified by the nodes of the network to be able to connect to the block that precedes it through a code hash The unique conformation of the codes that link to the blocks depends on encryption mechanisms that are, in turn, defined by a coded and compacted representation of the series of entries they contain.
Once a block is created and verified by a certain number of nodes (or all), according to protocols and rules
defined from the first block of the chain ("Genesis block"), the modification is distributed to all nodes of the network. All nodes have the entire registry and the possibility (sometimes the obligation) to audit it in permanently and in real time.
The fundamental characteristic of a chain of blocks is the "distribution", that is, the deconcentration of jobs and access to information. All members have an important role (in most chains of blocks all nodes have exactly the same role), but none concentrates information, nor does it have the power to make some kind of decision on the chain, which is why a global consensus based on clear and strict rules when you want to make a change. The records of a chain of blocks are,
therefore, highly reliable thanks to the fact that they guarantee the integrity of the information, traceability of the transactions and security.
The use of block chains begins to gain popularity globally. It currently has hundreds Of applications. This 'distributed electronic records' technology can be used for all kinds of Information: medical histories, authorship and patents, data authentication, food distribution, goods roots and more, even offering the possibility of programming
"Smart contracts" from automatic execution, which promise to revolutionize many activities and industries around the world.
Between the applications it emphasizes the registry of transfer of value, because the chains of blocks make possible
-for the first time in history- real electronic transfers, that is, those where one party gives to another one element of information and permanently loses its possession (the ability to use it or copy it). In few words, the chains of blocks eliminate the possibility of "double use" in the transfer of information, that in financial operations translates into
"Double expense".
CRYPTOCURRENCIES AND TOKENS:
It is not surprising that the chains of blocks have been designed precisely thinking about the preservation of value and the freedom to make transfers of this. Bitcoin, the first digital asset based on distributed trust -without the intervention of a central entity- It was his first application.
The cryptocurrencies are digital assets designed to work as exchange media that use cryptography to give security to their transactions, to control the creation of new units and to verify
the transfer of these.
A token, on the other hand, is a unit of value that an organization creates to govern its business model and give more power to its users to interact with their products, while facilitating the distribution and distribution of benefits among all its shareholders. In the case of digital tokens, accounting and relation of the token with the ecosystem around the productive activity is on the chain of blocks of some cryptocurrency, as Ethereum, which mediates the relationship of the token with the real economy and the fiduciary currencies, although this relationship does not have to be permanent.
Cryptocurrencies and digital tokens:
*Facilitate monetary and legal transactions
*Allow the transfer of assets (or certifications of your property) more safely
*They empower users and organizations to manage their finances, so them become the owners of the banks, and not just the bank account, by owning a "digital wallet" or wallet to keep your cryptocurrencies.
*They avoid the high transaction cost of the credit card companies and processors of traditional centralized payment
*Save time thanks to the speed of transactions
*Eliminan las barreras geográficas al ser impulsados y sustentados en protocolos de internet, dando acceso a operaciones financieras internacionales seguras.
These instruments have revealed new opportunities for people. However, they still present great challenges: usability, volatility and resistance of traditional institutions, which are forced to re-think their role in the economy at the dawn of the fourth industrial era.
Digital cryptocurrencies and tokens are not being fully exploited by important actors of the society, both public and private organizations. In any case, the advantages inherent in the block chains make it reasonable to think that in the medium term these technologies will be massively adopted, provided that the states stimulate the necessary conditions for this process.
AN OPPORTUNITY FOR VENEZUELA
The economic engine and fundamental base of the Venezuelan economic wealth is the abundance of its natural resources. Oil is the most prominent of them. The exploitation and commercialization of hydrocarbons, and some associated products and derivatives, generates 95% of the entry of foreign currency into the country for exports.
Because of its quality as the main source of electricity, and a vital part of other industries, such as pharmaceuticals,
Oil is still a very valued commodity in the world. Its market is about 1.7 trillion of annual dollars.
To put it in perspective, the oil market is bigger than the sum of all the markets of metals This situation places Venezuela in a privileged position, as it holds the largest reserves tested crude oil (300,900,000,000 barrels) and great competitive advantages in energy production electric.
SQUARE 1
The abundant natural resources of the country allow to design an unconventional cryptoactive that takes advantage of the Block chain technology to guarantee transparency, auditability and integrity of information for offer the stability that the volatile market for cryptocurrencies still requires. In this way, it would promote country as a global reference of sovereignty in front of the big global financial centers.
The price of Petro will be associated with that of the Venezuelan crude oil basket, among other reasons, because the State will accept the payment of taxes, obligations, taxes, contributions and national public services in Petro, It offers advantages for investors on several fronts:
a) Instrument to reduce volatility in the cryptoactive market.
In the last year the three main cryptocurrencies in terms of capitalization of market recorded a marked increase in prices. Bitcoin multiplied its value 17 times, while Ripple and Ethereum did 492 and 97 times respectively. While the
general trend was upward, significant fluctuations were recorded throughout the year, with days in which Bitcoin came down 18.7%, Ripple 46.0% and Ethereum 27.1%.
SQUARE 2
The Petro will give investors the opportunity to enter the market of cryptoactives in the hand of an instrument with intrinsic value, more secure and stable, susceptible to a fundamental analysis because it is linked to an industry widely known and, therefore, suitable for use in large transactions, operations of credit and even as a store of value.
b) Use of technology to improve confidence and boost growth.
The Petro will work with the technology of block chains, following the highest standards to guarantee integrity, transparency, auditability and governance. In addition, it has the backing that provide the privileged reserves of natural resources of Venezuela. This cryptoactive will generate confidence among international investors for having their bases firmly established in a context of clear rules and a solid connection with the real economy.
"PETRO IS A PROJECT MUCH MORE AMBITIOUS THAN THAT OF OTHERS CONVERTIBLE DIGITAL COINS LIKE THE DIGIX (BACKED IN GOLD) OR THE TETHER (BACKED IN CURRENCIES), WHICH OPENS THE DOOR TO THE USE OF OTHER ASSETS AS BACKING OF THE CURRENCY. DUE TO ITS CONDITION OF CRYPTOACTIVE ISSUED BY THE STATE ON AN OWN PLATFORM, THE INSTRUMENT HAS POTENTIAL TO BE ADOPTED MASSIVE, WITH MORE THAN 20 MILLION USERS ONLY IN VENEZUELA, THAT IS, THE EQUIVALENT TO 5 TIMES THE SIZE OF THE GLOBAL MARKET OF THE CRYPTO COINS (JULY 2017)"
THE PETRO
DESCRIPTION:
The Petro (PTR) will be a sovereign cryptoactive backed and issued by the Bolivarian Republic of Venezuela on a federated block chain platform. Your launch will spearhead the promotionof an independent digital economy, transparent and open to the direct participation of citizens, who will serve as a platform for the development of cryptoactives and innovation in Venezuela and other emerging countries.
This instrument will promote the emergence of a more just, collaborative, autonomous and global financial system.
favorable to growth and exchange among developing economies:
THE PETRO WILL HAVE THREE FACETS:
a) Exchange medium.
It can be used to purchase goods or services and will be redeemable for trust money and
other cryptoactives or cryptocurrencies through digital exchange houses.
b) Digital platform.
Could exercise the functions of a digital representation of goods and / or materials premiums (e-commodity) and will serve as scaffolding to create other digital instruments oriented to national and international trade and finance.
c) Savings and investment instrument.
Its stable value will encourage its use as a reserve of value and financial investment.
The Bolivarian Republic of Venezuela will demand high standards to combat money laundering and knowledge
of the client in the authorized exchange houses.
The total of Petros issued and put up for sale will be one hundred million (100,000,000). There will be no extraordinary emissions.
Divisibility:
The Petro will be divisible by 100,000,000 units. The minimum unit of exchange will be denominated Mene (0.00000001).
EMISSION AND INITIAL OFFER:
The launch of the Petro will be divided into two stages: a Presale and an Initial Offer (ICO).
PRESALE
The Presale will start on March 1, 2018 and will consist of the creation and sale of an ERC20 token on the block chain of the Ethereum platform. This process will promote and guarantee demand for the Petro Initial Offer, which will be made later.
The tokens that meet the requirements of the ERC20 standard are non-mineable digital files that are they issue in their entirety through an intelligent contract on said platform. The token will not be part of the Petro network until such time as it is exchanged or "burned" during the Initial Offer process. The token may be exchanged by Petro at any time between the launch date and the close of the Initial Offer.
INITIAL OFFER:
The initial offer of the Petro will be made later until the eighty-two million are exhausted four hundred thousand (82,400,000) units available for sale. The Petro for sale during the Offer Initial will be created and sold through an auditable mechanism in the chain of blocks.
RESTRICTIONS:
The Venezuelan State will not be able to make new emissions from the cryptoactive Petro. The design of the network
includes the possibility of generating an incentive by proof of possession (PoS). This characteristic will be initially disabled and may only be activated at the initiative of the Superintendence of the Cryptocurrency of Venezuela with the approval of Petro's holders.
STATE BACKUP:
Petro's most important contribution to the cryptoactive market and the new digital economy will be the support offered by a sovereign State.
The Bolivarian Republic of Venezuela guarantees that it will accept Petro as a form of tax payment, rates, contributions and national public services, taking as a reference the price of the barrel of the basket Venezuela the previous day with a percentage discount equal to Dv.
In this way it is guaranteed that the buyer always has a recovery value adjusted to that of his investment.
These payments will be accepted in bolivars at the exchange rate resulting from the operations of the houses of authorized changes, determined by market mechanisms and in accordance with legal provisions issued by the competent authorities of the Republic according to the following formula:
Where the Petro / Bolívar rate will be determined through a weighted average by the volume of operations of all exchange houses authorized by the Venezuelan government.
Additionally, the Venezuelan government is committed to promoting the use of Petro in the domestic market and
make efforts to stimulate its acceptance throughout the world.
DEVELOPMENT OF THE ECOSYSTEM:
The State will actively assume the commitment to promote the adoption of Petro, encouraging the growth of its national and international user base.
The national government commits itself to stimulate a strong endogenous demand that favors the stability of the market value of the cryptoactive. The policies that will be applied for the promotion of Petro will also be aimed at increasing the attractiveness of the platform as an instrument for the development of innovations and applications that contribute to the growth and financial autonomy of Venezuela with projection to other emerging economies.
AMONG THE INITIATIVES HIGHLIGHT THE FOLLOWING:
*The Venezuelan State, through the Superintendence of the Cryptocurrency, will take the necessary actions to promote the exchange of Petro in exchange houses of international cryptocurrencies, with special emphasis on those that operate legally in emerging countries and allied nations.
*The use of the Petro by PDVSA and other public and mixed companies, as well as national public entities and regional and local governments.
*The payment of extraordinary labor commitments and benefits in Petro, well as accumulated social benefits, as long as they have individual approval Express of the beneficiary worker.
*The legality of Petro's accounting as an asset will be established. This process It should be done taking as a reference the market value in bolivars of the instrument, with attention to the fulfillment of the national policies to combat the
money and financing of terrorism and the necessary standards for knowledge the client's.
*The companies providing goods and services present in Venezuela that incorporate the use of Petro to their commercial operations, they may receive tax incentives.
Additionally, the State will give projection and stimulate the international demand of Petro, and will promote the use
of your platform. To this end, it will establish mechanisms for the incorporation of the cryptoactive in its relations with
foreign oil companies with a national presence and in the international trade relations of PDVSA and other companies and state services.
INITIAL OFFER OF EL PETRO.
INFORMATION FOR THE INVESTOR.
EMISSION AND DISTRIBUTION:
A total of one hundred million (100,000,000) of Petro will be issued, of which eighty-two million four hundred thousand (82,400,000) will be offered to the market in two stages: a private Pre-sale and an Initial Offer public, and will be distributed as shown in the following graph:
GRAPHIC 1
*44% will be available for the initial public offering of the cryptoactive.
*38.4% will be available for private sale.
*17.6% will be retained by the Superintendence of Cryptocurrencies and Related Activities
Venezuelan (SUPCACVEN).
DESTINATION OF THE FUNDS OF THE INITIAL OFFER:
The funds raised in the initial issue will allow the continuous technological development of Petro and its ecosystem with the purpose of promoting the massive adoption of it. The destination of the funds will be auditable thanks to the transparency of intelligent contracts in the block chain.
The distribution of the funds raised in the Initial Offer will be as shown in the following graph:
GRAPHIC 2
*15% Petro Project: funds destined to the technological developments and promotion efforts that allow comply with the roadmap announced.
*15% Development of the ecosystem:
Fund for the promotion and promotion of applications within the ecosystem Petro, which will be proposed through the SUPCACVEN and selected by the holders of Petro through of votes through the chain of blocks.
*15% Technological development:
funds destined to investments in technologies, infrastructures, special zones and projects that contribute to the economic progress of the country, with special emphasis on applications of the block chains to improve productivity and transparency in companies and public bodies.
*55% Sovereign Fund:
destined to the Republic for the support granted to the use of Petro.
CONDITIONS AND INCENTIVES FOR THE INITIAL OFFER:
BASIC CONDITIONS
Total issue: 100,000,000
PRESALE
Available tokens:
38,400,000
Reference sale price:
60USD
Start date and time:
March 1, 2018 at 08:30 a.m. (Venezuela time, -04: 00 GMT).
Closing date and time:
28 de marzo de 2018 a las 23:59:59 p.m. (hora de Venezuela, -04:00 GMT)
INITIAL OFFER
Total Petro available for sale:
44.000.000
Reference sale price:
60UDS*
Start date and time:
March 29, 2018 at 08:30 a.m. (Venezuela time, - 04:00 GMT)
Closing date and time:
until the Petro run out of the initial issue.
Process description
As previously explained, the ERC 2 0 token is pre-rolled into an intelligent contribution from Ethereum.
At the beginning of the Pre-sale process, the entire issue will be in the digital portfolios of the Republic.
The day of the beginning of the Presale, at 08:30 a.m. (Venezuela time, -04: 00 UTC), the total of the thirty-eight million four hundred thousand (38,400,000) tokens. During the process discounts will apply decreasing to stimulate early investment.
Prior to the Initial Offer, the one hundred million (100,000,000) of cryptoactives of the issue will be pre-mined in the Petro block chain.
This Initial Offer, whose closing depends on the total sale of the created Petro, guarantees to the Venezuelan State the
total collection of funds corresponding to the sale of all available Petro (82,400,000 PTR).
During the Initial Offer, four levels of decreasing discount will be applied for every five million (5,000,000) of Petro to complete and, finally, a fifth block of twenty-four million (24,000,000) of Petro for complete the total destined for the Initial Offer process, that is, forty-four million (44,000,000) of Petro.
Incentives
An incentive system has been designed for investors who acquire Petro in the private sale. The scheme is intended to stimulate early participation in the Presale to generate confidence that produce a favorable effect on the market during the Initial Offer.
The plan is quite simple and involves decreasing steps of discounts from the initial batch. This first lot, which will be placed in the Presale, will have a volume of 3,400,000 Petro and will have a discount on the price of Reference of the crude of the Venezuelan basket. The following lots will have 5,000,000 Petro and the discount will decrease successively for each batch sold, until the last batch, of 24,000,000 Petro, which will not have any discount.
PURCHASE AND EXCHANGE:
The Petro can be acquired in the following ways:
*By means of exchange of Petro ERC20 tokens acquired in the Presale.
*Buy in the Initial Offer open to the participation of the general public.
*In the secondary market once the Initial Offer process is finished.
The purchase and exchange of Petro may be carried out from person to person, from portfolio to portfolio, in
safe. Being out of reach of arbitrary blockages or limitations of third parties -unless you know find in possession of a centralized entity, such as an exchange house.
This ability of the Petro block chain to execute direct exchange operations will allow the use of the instrument as a means of direct payment to businesses, restaurants, goods and services companies.
However, it is worth highlighting that digital exchange houses will play a fundamental role in monitoring for the prevention of illicit activities and the fight against money laundering, so they will be the ideal means for the commercial, industrial and business activities of international trade in which the Petro interact with fiduciary currencies or with other cryptoactives or cryptocurrencies.
