They will issue 24,000 blockchain-based digital tokens and 4,000 physical silver collector coins, each coin having six blockchain tokens.
These are not meant for spending or to be used as a currency, but as a collectors asset based on their limited supply.
Each coin costs €19.18 with the blockchain tokens randomly selecting six of the 20 signatories of the Act of Independence.
The tokens are to run on the NEM blockchain, the somewhat obscure Japanese project that claims to be a merger of sorts between a public and a private blockchain.
It’s the same blockchain used by Venezuela’s Petro, the bond token that purportedly raised billions for the Venezuelan government.
Here Lithuania is seemingly merely testing the blockchain, with it unclear why they went with NEM instead of the standard blockchain of ethereum.
One reason may be because they don’t want the tokens to be transferable or usable as a currency, but as ethereum’s smart contracts are Turing complete, they can be coded however one pleases.
What is clear however is that this is an interesting experiment by the Bank of Lithuania itself which could potentially use LBCOIN as a prototype for issuing blockchain based bonds or a blockchain backed digital currency backed by hard assets.
The latter would have many regulatory hurdles and complications, while the collectors one is clear on that front and so it begins its public journey on July the 9th 2020.