Proposal: Help Venezuela digitize its economy

Koromoto

Member
Dec 2, 2017
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We all know Venezuela is facing one of the worst economic catastrophes the world has ever seen which is slowing down productivity to levels of emergency and humanitarian crisis. We need to protect our currency in order to build trust again and to enable the digital economy to flourish. Right now it's almost impossible to find cash for daily transactions, e-commerce is non-existent, banks also are having huge problems with their own payment infrastructure. We are at a tipping point where we innovate or perish and we're running out of time.

I've been studying cryptocurrencies and not all of them can solve the problems we are facing, some of which are:

Requirements:

- Instant verification of transactions for fluid markets (DASH coin)
- Tethered to the national currency for frictionless adoption and low volatility (USDT Tether)
- Vanity numbers for easy of use (Namecoin, Ether registry)

I believe these three requirements are of utmost importance for success and it is important to emphasize them: Instant verification for daily transactions like buying bread and coffee, tethered one to one for frictionless adoption, and vanity numbers for the not-so-savvy user so they can use their phone to instantly send money to another phone number without scanning QR codes or entering impossible to remember account ids.

So, after analyzing BTC, ETH, XRP, XMR and DASH, I firmly believe DASH is the correct solution to our problem only if we can make some adaptations that will benefit DASH in becoming the token factory of the world, and we can use our own case to prove it as well as the Zimbabwean case that I see you're also helping to solve.

Objectives:

- Introduce digital currencies to millions of Venezuelans
- Facilitate the use of digital assets even grandma could use to buy bread
- Enable a digital market for daily transactions not just as store of value
- Create a solid foundation of trust between merchants and consumers
- Create a bridge between Venezuelan tokens and DASH to further solidify our investment

Actions:

- Create a token/cryptocoin tethered to the VEF Bolivar one to one
This will allow Venezuelans to use them on a daily basis without conversions (frictionless)
There will be a X% spread between buying and selling tokens to maintain profitability
- Create a registry for pairing accounts to vanity numbers (phone numbers preferably)
This will allow ease of use for the less knowledgeable, simply transfer tokens from phone to phone
- Create a digital wallet that can securely use the registry (vanity numbers) for transferring money
- Create a network of dedicated masternodes for instant verification, enabling daily use for daily consumption
- Create faucets for distributing tokens for free validated by phone numbers in order to increase adoption
- Create an exchange to offer tethered tokens for a floating X% spread and a market to exchange tokens and dash at market price as store of value and investment
- Initial infrastructure, testing, deployment and marketing

This project will allow citizens of Venezuela to use their national currency as digital tokens in daily purchases without difficult conversions while providing a secure mechanism to protect their savings for those who so desire using the simplest and most secure wallet paired to your phone number.

At the same time it will allow the DASH Foundation to study and implement token factories from which a USD-DASH could emerge to compete with USD-Tether and at the same time help the Zimbabwean problem and all the countries that face the same economic issues.

I am Venezuelan, we don't need money, we need infrastructure and trust to build a digital economy. DASH can help.

Thank you for your time.
 

Koromoto

Member
Dec 2, 2017
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TL;DR;

Venezuela is desperately in need of a cryptocurrency and DASH is the best candidate.

- We need a DASH token or fork tethered to the VEF Bolivar
- A special registry and wallet for phone to phone transfers
- Faucets for distributing initial tokens to phone numbers

This will allow masternodes, miners and exchanges to flourish helping the digital economy to thrive with instant transactions, ease of use and trust.

We don't need money, we need knowledge which is more valuable.
 

AlejandroE

Active Member
Dec 3, 2017
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Caracas, Venezuela
Nice post and great proposal. Im Venezuelan too, I joined yesterday to this community and I have some great ideas that I think can help your proposal. Im from Caracas. Contact me if you are interested: [email protected]. Lo del gobierno y el "petro" es una locura, aunque están demasiado necesitados de liquidez en $ ya que están bloqueados por todos lados y necesitan un canal para seguir lavando el dinero que se han robado. Saludos mi pana
 

Koromoto

Member
Dec 2, 2017
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Great idea, I believe giving money to people (one dollar is enough in developing countries) is a good way to introduce them to cryptocurrencies. Our project goes beyond that, it includes creating a 1:1 token and a vanity registry for simplicity. What do you think about this idea?
 

Dashmaximalist

Active Member
Mar 16, 2017
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Thanks for the support.

can you explain exactly how the token thing works , remember for the fiat tokens to work , there needs be a trust in a central party which is not good especially for currencies like bolivar which are depreciating
 
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Koromoto

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Dec 2, 2017
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Trust is a key word, and here exactly is where DASH shines if they act as central banker for the DASH-BS. Faucets will start promoting the token, miners and masters make their profits as usual, exchanges gain from the ask/bid spread, and users enjoy the simplest wallet of all paired to a phone number.

Remember that the whole idea to tether the token to the VEF is to lower friction in daily transactions. This currency is not for investment, it's a medium of exchange. It won't make us rich, it will make us agile on e-comerce and will easily allow people to even exchange tokens for cryptos to safeguard their investment.

See, the government wants to do exactly what I propose (worse yet of course, they have no knowledge) because there is an imminent need but they lack the most important ingredient, trust.
 

Koromoto

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Dec 2, 2017
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About inflation, of course our fiat currency loses value on a daily basis at an alarming rate, but still I have to buy a bag of bread for ten thousand VEFs, tomorrow it will be twenty thousand, then thirty thousand, it's a fact we can't escape, If we want to protect our money we would buy DASH, but for daily commerce we would use DASH-BS no matter what price goods have.

So the mere mortal, the one who spends a hundred dollars a month buying food to survive will use DASH-BS and nothing else, no conversions, no cryptic accounts. Those who have an excedent will convert them to DASH for protection, they will go the extra mile learning the crypto hoopla. That constant exchange between DASH and DASH-BS is what keeps the market healthy.

The possibilities that mere mortals and merchants will use any (non-tethered) crypto for daily purchases approaches zero due to volatility and price conversions, and that's a pain point crypto enthusiasts fail to understand.
 
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Iñaki

Member
Oct 22, 2017
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Are you saying you want to deploy wallets exchanges and a whole crypto infrastructure to be able to transact in a ever devaluing Crypto?
Do you realize that if this would be adopted vef would plummet even more because of supply and demand dynamics?
Your crypto would therefore destroy itself.
 

Koromoto

Member
Dec 2, 2017
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Are you saying you want to deploy wallets exchanges and a whole crypto infrastructure to be able to transact in a ever devaluing Crypto?
No.

Do you realize that if this would be adopted vef would plummet even more because of supply and demand dynamics?
Your crypto would therefore destroy itself.
Can you please explain why?
 

Iñaki

Member
Oct 22, 2017
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Alright:)

Let’s say we start with both 100 real VEF and 100 tethered ones.
Now demand rises for the tethered vef. Prise rises. Vef is worth less and vefTether is worth more. Let’s say price rises to 101 vef per 100 vefTether(which is not unusual for USDTether. But because your token
Shouldn’t decouple from real VEF you have to increase your VEFTether supply to push the exchange rate down again. You have to create 1 VEFTether to balance the price again.

You are then left with 100 real VEF and 101 thethered ones. There wasn’t any real value created in the meantime meaning you now have 201 instead of 200 VEF to price economic values. That’s inflation.

This effect is accelerated when more and more people buy in.

You could however destroy the real VEF upon exchanging to balance it but I can’t see that work without the state interfering
 

Koromoto

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Dec 2, 2017
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The idea of VEF-TOKEN is that they serve as unit of account, not as currency. You deposit 100 VEF and they represent 100 VET just so you can send/receive them in our network like using a debit card or paypal, but in reality they're still the same 100 VEF. If you deposit 100 Bs in your bank account they won't increase the money supply they're still 100 Bs, the same would be said of VETs. They're just a representation 1:1 of the local currency, just a number in our digital ledger instead of a centralized DB. We create/destroy VETs on demand, we could start with a trillion or a quadrillion VETs and it wouldn't matter, they won't be "sold" at a price different than 1 VEF no matter the demand because we will be the cashiers and gatekeepers.

In order to understand this idea you have to separate the two concepts, one volatile crypto and one token as representation of real money, so the token and the blockchain practically serve as a bank ledger of who owns what and we are the central bank while masternodes will be the local banks.

And it doesn't matter if the VEF tanks because of hyperinflation, the VET will too 1:1 because it represents the same amount in VEFs. If the govt drops three zeroes to their currency we do the same across all wallets and keep the same value. People wouldn't use it for savings that's why they'd use the strong coin and the wallet would easily move coins between the savings account and the cash account instantly.

This is an idea that needs more exploration but it is based on the pain points already discussed and known for all about cryptos and their use in real world. And I'll tell you this, no matter what cryptos do, not a single one will crack that nut unless they take a different approach. More than a thousand coins later nobody has cracked it yet, a thousand more won't either.
 

Koromoto

Member
Dec 2, 2017
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To simplify, just think about Paypal on the blockchain. Paypal doesn't create money, they just move it around.