ICO KYC Report
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About LOHN
About LOHN
What is the lohn ?
After World War II, human society entered a new stage of development and the appetite for consumption led to the emergence of a new industrial revolution. The profit maximization chase pushed consumer goods manufacturers to look for cheaper production options.
Thus, in the 60s, the outsourcing of a part of production in emerging countries that had the advantage of both cheap raw materials and low labour costs seemed the most convenient way for most big producers.
Industries such as textiles, footwear, electronics and home appliances, machine building, wood industry through furniture production and many others have seen the huge potential of lohn industrial production. World-renowned brand owners have become engaging buyers and have provided expertise and markets while emerging country manufacturers have integrated the production of goods on demand and absorbed a huge and cheap labour force in their home countries.
All parties involved were winning. The brand owners had found a way to grow their profits steadily and the manufacturers had the opportunity to gain access to the rich markets and to develop their national economy. However, the advantages came with disadvantages and imbalances. The strong ones became even stronger and those who depended on them had to accept their increasingly restrictive conditions and especially the labour cost policy.
Why lohncontrol.com ?
lohncontrol.com is a real business project that will build a trading platform called lohncontract.com for processing economy in over 30 industry branches. On this platform, the companies from developed economies will be the buyers and will launch production orders for various consumer goods to the production companies in emerging economies that can produce commodities at competitive prices due to the cheap labor they have and the proximity of raw materials at low prices.
lohncontract.com will evolve as a complex ecosystem in which besides buyers and manufacturers will be present the suppliers of raw materials, logistics, quality management, industrial process management, legal services and settlement of payments between the parties. The relationship between them will be managed in blockchain through the lohncontrol smart contract.
At present, the annual production achieved in lohn globally exceeds 10,000 B $, representing 10% of Gross Domestic Product. The target of lohncontract.com platform for next years is 0,1% from this statistic.
How the LOHN token price calculation algorithm works ?
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 tokens value. 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 requests, 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 their liquidity.
MkLV = ARV/ATxATL
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
Or if :
ARV=150Milion USD
AT=800Milion LOHN tokens
ATL=60%
then
MkLV = ARV/ATxATL=150M/800Mx60%liquidity
MkLV=0,3125USD
Or if :
ARV=300Millions USD
AT =600Millions LOHN tokens
ATL =40%
then
MkLV = ARV/ATxATL=300M/600Mx40%liquidity
MkLV=1,25USD
So, the LOHN Token price is always in direct proportion to the market volume of lohncontract.com and growth will be exponential as the project goal is reached and ROI rate will be very high.