CORE MAGAZINE January 2017 | Page 6

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Chronobank: COIN BACKED BY TIME

Edway Group Ltd., one of the leading Australian companies in industrial training and labour supply, has recently co-founded a blockchain-based system that matches employers directly with workers and rewards them with a price stable cryptocurrency. This system is called Chronobank and the price stable cryptocurrency is the Labor-Hour Token.

Chronobank is unlike any other cryptocurrency system or even unlike any type of cash. While most currencies are either fiat or backed by a real world commodity like gold or silver, Chronobank proposes a currency that is to be backed by time, in a system designed to tokenize labour-hours. A mind blowing idea that may seem unrealistic or unfeasible to the casual observer, but that becomes more understandable once we read about the process, which is very well thought of and described in the whitepaper.

In order to fund this project, Chronobank will be hosting a crowdfunding campaign, an Initial Coin Offering period in which investors can exchange Bitcoin and other cryptocurrencies for TIME, a token that will allow ICO investors to receive dividends from the fees generated in the Chronobank network (1-3% from issuance and 0.15% transaction fees of LHT) and to make decisions about the system as a whole.

Why would Labor-Hour tokens, a currency backed by labor hours be created? It is a known fact that cryptocurrencies are subject to volatility, one need only to look at the price charts of the recently launched Zcash to get a pretty good idea of how accentuated this volatility can be when dealing with crypto. National currencies and cryptocurrencies that are backed by them, although much more stable, are also prone to volatility and to long-term devaluation due to inflation. With this in mind, Chronobank has created a system, initially to be deployed in the Ethereum blockchain, where the cryptocurrency is not backed by any national currency or commodity, but backed by legally binding contractual obligations to provide real-world labour-hours.

Much like other stable coins that are backed by fiat or gold, Chronobank relies on a centralized entity, the ChronoBank Entity, that coordinates the creation, redemption, and destruction of Labour-Hour Tokens (LHT). This entity is also responsible for the acquisition and coordination of legally binding contracts that can be exchanged for LHT. A specific Chronobank entity will be launched for each region with a different variation of the Labour-Hour token (like the LHUS for the U.S and the LHUK for the U.K) to ensure that the price of each LHT is worth roughly the same on the exchanges as the avg. labour hour in that region.

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