It has been impressive to watch what is going on Venezuela in terms of cryptocurrency adoption. It is as if Satoshi Nakamoto, the creator of Bitcoin was one of those prophets in the old testament of the Bible warning about the perils of centralized financial institutions flooding their countries with paper money and devaluing the value of the work people have labored for. This is the reason the first genesis block had a message imbued into the block’s raw data, “The times 03/Jan/2009 Chancellor on the brink of the second bailout.”
Even though Satoshi did not elaborate on this message, any regular person will infer that Bitcoin itself is a message for the centralized banking system that their days of destroying the wealth of their citizens through the manipulation of their currencies were over.
Anyway, Venezuela is a case study that is playing out right in front of our eyes. Through sanctions and mismanagement of their resources by the people in charge, the country fell into the worst financial crisis in their lifetime. One of the areas this is manifesting is in their currency. To be able to keep the government going, their central bank embarked on money printing that has destroyed the purchasing power of the Bolivar, the name of their currency. The inflation has gone onto the millions of percentages. It got so bad that the central bank started removing zeros from the Bolivar to bring the numbers down but this has still not worked.
The government of President Nicolas Maduro, the President of Venezuela came up with a centralized cryptocurrency called the Petro which is allegedly backed by barrels of oil. This was an idea introduced to subvert the heavy and economic crippling sanctions that the United States has imposed on this South American Country. Because of the mismanagement of the Bolivar which have plummeted immensely, the Venezuelans are not yet sold that this crypto will not go the way of the worthless Bolivar. The government is trying to force institutions to start using it so it can be legitimized.
People there are mostly using more stable currencies like dollars and euros and precious metals like gold and silver and have been able to retain some of the value of their wealth.Cryptocurrencies have also become a big player with Bitcoin and Bitcoin cash being the major players. Recently, Dash has made inroads there and the way they have done this has been just incredible.
Dash is one of the top 20 cryptocurrencies in market value according to coinmarketcap.com. It has what is called a decentralized autonomous organization (DAO) which is a group that has no central authority in the form of decision making. The Dash DAO is governed by people with stakeholders that have invested 1000 Dash in what are called master-nodes. 1000 Dash is about $110,000 which is a lot of money, so the stakeholders have a vested interest to ensure the viability of the network. One great functions of these masternodes is their ability to vote for proposals which are funded by the Dash DAO treasury. Ten percent of the block rewards go into this Dash DAO treasury and can be used to fund ideas to grow the network.
This Dash DAO treasury is being used to fund teams in the country of Venezuela. These teams are not just hap-hazard networks, but have organized teams with roles like Project Manager, Sales Manager, Sales agents, Business Executives and Quality control teams. They are pretty excited about the Dash project that everywhere they go to around the country, they are able to demonstrate to merchants and citizens the ease of use of Dash in paying for day to day transactions. It has gotten so good now that there are more than 2000 merchants accepting Dash. The Dash DAO treasury funds are used to fund teams and affiliates to host meetups with the locals and educate them about using Dash in their everyday transactions.
Dash also partnered with the Kripto mobile corporation (KRIP), a South American brand of cryptocurrency enabled smartphones. The partnership will put all components needed to use Dash preloaded into the phones of 10,000 new Venezuelan customers every month.
Even though Dash has a pretty strong marketing campaign, another advantage they have is that their technology goes hand in hand with the campaign. Dash penetrated the Venezuelan market during the scaling debates that were going on last December about Bitcoin. People were already using Bitcoin, but the issues with confirmation times for transactions became a real problem because merchants and people were waiting for longer confirmation times and the transaction fees were not sustainable anymore. At the time, Dash’s confirmation times were 2.5 minutes per block and their fees were literally pennies on the dollar; it was a no-brainer for merchants and regular people to start transitioning to Dash. Dash was able to penetrate that market. As anyone knows once you meet peoples’ need especially in a time of crisis, it’s easier to keep them coming back. That was exactly what the Dash team did at this time. Not only that, but Dash has what is called instant send, where for some more pennies in transaction fees, payment confirmations are almost instant.
Anyway, having said all this about Dash, how will Telos play into this? First of all Telos will be using the EOSIO software that has already proven to have one of the fastest transactions speeds with 1.5 second block times and handles about 5000 transactions per second so it will not be a no-brainer in terms of speed which merchants and regular people love. Not only does it has this lightning speed, but there are also no transaction fees. Combine fast and free transactions and we see a winner in adoption. Telos will also have a Telos foundation that is a decentralized autonomous organization just like the one Dash has. One of the goals of the Telos foundation DAO is, “promoting the network through grants and administration to advertise, market, engage in social media, live events, and teaching opportunities that raise the profile and inform and expand the user base.”
These Telos foundation funding for these activities will be voted by members that hold what are called Telos Foundation Voting Tokens (TFVT) which will initially be distributed based on the contribution of those who helped in the initial launch of the networks whether through the Telos Launch Group (TLG) and Telos Community Rewards Pool (TCRP). Once the network launches, TFVT will be distributed twice annually to the members of the Telos community deemed to be providing service to the network and worthy of being entrusted with decisions regarding it’s future decision making.
The difference between the Telos Foundation DAO and the Dash Treasury DAO is that the Telos Foundation Voting Tokens can only be earned, not bought, so it ensures that people with lots of money called “whales” cannot manipulate the treasury of the Telos Foundation DAO because there is no master-node to invest in. The person has to really do the work for the foundation members to notice them to propose the TFVT to be entrusted to them. The person has to be active in the community. This is revolutionary!
In addition to the Telos foundation DAO, there will be a Worker Proposal System (WPS) in the Telos network in which members of the Telos network community can submit well documented, smart contract-based proposals for growing the network that will be voted on by Telos token holders.
The Telos network will not just be a platform that facilitates peer to peer transactions, but it will also be a smart contract network where decentralized applications (dApps) can be built and run. With these tools above and people that are excited about what Telos wants to accomplish, I see Telos doing the same or more than what Dash has done in Venezuela. Not only can this be done in Venezuela, but also in other countries facing the same challenges in South America, East Europe, Asia, and Africa.
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