About Lohncontrol
The platform will be a dynamic, complex ecosystem that will integrate all parties involved into a lohn contract and their relationships will be managed independently in the blockchain through the lohncontrol Smart Contract that will release the payments due to each one to fulfill the tasks initially allocated. The main actors of this ecosystem will be buyers from developed economies who want to produce quality and cheap goods and manufacturers from developing economies interested in these orders. The relationship between them will be possible with the participation of some directly involved actors such as transport companies, connected logistics, warehouses, then quality control experts who are engaged in industrial production processes and finally the providers of payment solutions within the smart the contract, which closes the economic circuit. Equally important in the performance of the lohn contract but with indirect involvement in the smart contract are the secondary actors in the second series, namely raw material suppliers, internal suppliers, utilities suppliers and then framework providers for software infrastructure, financial risk management, data providers, financial risk insurance, legal services. In the production process management area, industrial process engineers, industry specialists, development partners will be involved, and the ecosystem will mobilize financial institutions: clearing houses, friendly banks, escrow partners, funding solutions, blockchain accounts on the settlement area. The blockchain architecture of the lohncontract.com ecosystem is designed to provide psychological comfort to all parties involved who will know that the payment for the services provided or the goods delivered under the lohn contract will be made independently by the smart contract at the time of the assumed tasks. The blockchain thus introduces a trustworthy protocol without which firms located in different parts of the world, from different economic cultures, would not be able to interact or would do so and would incur high financial risks.
How does a lohn contract work in blockchain ?
The contract between the buyer and the producer also involves third entities that lead to the completion in good conditions thereof. These are the carriers who deliver the raw materials and other goods required to achieve the production in the first phase, and then they pick up the finished products to deliver them to the buyer. Domestic suppliers of raw materials, related services and utilities represent another important category for the success of the production. Above all there are the quality control experts natural or legal persons, who follow on behalf of the buyer the entire production process, from the delivery of the raw materials, the quality thereof, supply or delivery times, the quality of the goods or services provided by the domestic supplier, the timeliness of the deliveries or of the transportation of the goods and, in particular, the proper execution of the production by observing the buyer's technological indications. The contribution of each of the involved parties is governed by IF/THEN-type smart contracts subordinated to the main contract between the buyer and the producer. Chaining and the proper execution of these complementary smart contracts lead in the end to a rigorous achievement of the main contract between the parties.
- Until choosing a winning bid of a producer, the buyer must acquire a number of LOHN tokens equal to the total bid amount + the 3% commission due to the lohncontract.com platform. 2.The purchased tokens will be immobilized in the lohncontrol smart contract until the contract is concluded and then transferred to the manufacturer who will sell the tokens on the free market or to the lohncontract.com platform. 3.Token acquisition is primarily from the free market and if there are not enough tokens available for sale, they can be purchased in addition to the platform's stock at market price.
- The tokens can be transferred to the manufacturers as a payment and they can keep or sell them either on the free market of lohncontract.com at the market price.
- The Market LOHN Value(MkLV) will be calculated in real-time and will be displayed continuously on the platform's front page. The use of the platform by buyers, as manufacturing order makers is conditional upon the immobilisation in a lohncontrol smart contract of a number of LOHN tokens equal to the amount that it has to pay for the placed order. This means that all the time active request value (AVR) must be covered by LOHN token. If the active requests amount increases, the LOHN tokens that are in a predetermined number will have to cover this value and automatically will increase too. Because the 1B LOHN token to the $ 0.06 ITO value can only cover a $ 60M active request, any $ 60M increase in the value of active requests placed on the platform will cause a proportional increase in the token value LOHN that has to support the platform as a kind of escrow agent. This increase, proportional to the platform's use, was determined by a mathematical calculation materialized in a growth algorithm that includes multiple variables such as the availability of LOHN tokens on the free market or
where MkLV - Market LOHN Value ARV - Active Requests Value AT - Available Tokens and its represent the difference between CT (circulating tokens) and TUC(tokens used in contracts) AT=CT – TUC CT - Circulating Tokens TUC - Tokens Used in Contracts ATL - Available Tokens Liquidity (%)
For example if: ARV=100Millions USD
AT=1Bilion LOHN tokens
ATL=100%
then
MkLV = ARV/ATxATL=100M/1Bx100%liquidity
MkLV=0,10USD