Quote from: pgibranf on November 22, 2017, 02:53:34 PM

News from the blog https://blog.chronologic.network/chronologic-debt-smart-contracts-performance-global-partnership-9ab9716648a4

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We have closed a partnership with Performance Global to test out ChronoLogic Debt Smart Contracts via a real world simulation.

Performance Global?s business model & focus is in the advertising space & they?re looking to do a contribution period. Although Performance Global is unrelated to ChronoLogic business-wise, certain members of the ChronoLogic team have advisory roles in Performance Global. Additionally, a friendly deal was negotiated where certain private individuals from the ChronoLogic team will loan some funds to help kick start the Performance Global project & their contribution period.

And what better way to do a loan than by using a ChronoLogic smart contract?

Usually financial instruments work in that there are extremely long agreements that govern the terms. The goal of ChronoLogic is to take the most important terms of the debt agreement and put it directly into smart contracts. Since smart contracts are immutable & public, we believe that this will allow some very complicated terms to be discarded and for debt to be conducted purely on the blockchain.

When creating the smart contract it?s first important to lay out the terms of the debt instrument that were agreed upon. Some of these parameters come from Performance Global and were mandated. We decided to not push certain aspects to make this simulation / transaction as real as possible.
Terms of the Performance Global Loan

500 ETH
Denominated in ETH (we wanted to use DAY but Performance Global insisted on ETH; the framework is applicable to DAY as well)
60 day term
One fixed payment (in ETH) rather than a daily or monthly interest rate meaning no pre-payment penalties or any incentive to pre-pay
2% penalty of the balance for every 30 days the loan is not paid off
Non-transferable (ChronoLogic cannot sell the debt to a third party)
Un-secured & no collateral

ChronoLogic will now take the token sale smart contract (used for TimeMints & the crowdsale) & add a few features but also strip down a few features to create this specific smart contract.

The mechanics of this smart contract will be as follows:

Performance Global launches a smart contract that will generate a new token denominated as PGLOAN
ChronoLogic?s team will send 500 ETH to the smart contract address which will be immediately liquid for Performance Global to use as they wish
ChronoLogic?s ETH address will in return receive PGLOAN tokens that signify the obligation
Smart contract will have a pre-determined exchange rate at which Performance Global can send ETH back the ChronoLogic?s ETH address
To clear the obligation Performance Global will send back 500 ETH + the fixed payment at which point PGLOAN tokens will be sent back to Performance Global?s address signifying that the debt obligation has been cleared
If the obligation is not cleared then ChronoLogic?s ETH address that has ?TimeMint features? will start minting additional PGLOAN tokens at the monthly penalty rate of 2% per month until the obligation is cleared

New Features

Whitelisting ChronoLogic?s ETH address since this is a private deal so no one else can send ETH once the Performance Global debt smart contract is launched
Restricting transferability of PGLOAN tokens since the debt instrument is non-transferable
Fixed exchange rate system so the debt obligation can be cleared

ChronoLogic will start working on the technology to launch this smart contract this upcoming week. Part of the funds have been furnished in advance for Performance Global since the deal was closed earlier; however, once the smart contract is launched the funds that have yet to be deployed will be done so via the smart contract.

Afterwards, the goal will be to create a system for third parties to launch their own debt smart contracts.

The first phase will be by contacting the ChronoLogic team who will facilitate the process since each debt contract will have additional features that may not yet be developed. Payment will be via DAY tokens.

Please contact us if you are interested in launching your own crypto debt contract.

Please someone correct me, because believe me, I want this to be wrong, but now it seems with this line "we wanted to use DAY but Performance Global insisted on ETH" Chronologic is saying fck us the ones who funded them with money and complying to use Eth which renders Day token absolutely useless. Just because they use the contract the token sale used, means nothing for DAY token and now people will just use Ethereum because lets be honest, do I want a loan in DAY token(which has slowly but surely done nothing but plummet) or ethereum, which keep in mind if we had it today instead of participating in this ICO and holding DAY to date, eth was 347 on 8/28 and today it is 470. To get a decent timemint it was 5 eth minimum so 5*347 = 1735 and 5*470=2350. Lets take the lowest sell order on etherdelta .0085 I have 258 day tokens and havent withdrawn since I received due to the minting and .0085*258 ~ 2.19 ethereum. 2.19 * 470 = 1030. Loss if we calculate from investment = 700. If we want to go from Eth price now is $1320 loss. So we funded chronologic, our token was basically a proof of concept and now the concept has attracted a deal but instead of our token value increasing, it is literally worthless due to the fact our token isnt needed at all. Wow! Lessons learned now just the hard way T_T

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