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.