For over a year now, we have been a client of Bird & Bird, an international law firm with over 28 offices worldwide that specialises in e-business and technology enterprises.They have a strong background in economic matters, FinTech, and emerging tech.
Bird & Bird has approved this public-facing statement regarding the PLU token and its status.
In summary, PLU are loyalty points similar to cashback points from your grocery store, or air-miles when you travel. In this sense, they qualify as utility tokens in every category.
Pluton are defined by three major characteristics:
- They are a form of non-monetary reward token similar to frequent flier miles.
- They were issued in connection with the pre-sale.
- Pluton transfers and conversions are free, and Plutus does not directly profit from their utilisation.
In the Plutus pre-sale terms and conditions, a Pluton (“PLU”) is defined as a loyalty token and pre-sold product to be used within the Plutus ecosystem. Therefore, and based on the official definition, PLU are essentially app tokens.
It’s important to note that Pluton can ONLY be treated as value on the basis that they may:
- In due course may become treated as a medium of exchange like Bitcoin, notwithstanding its lack of any asset backing. This is highly unlikely, as they are intended for a specific purpose tied to Plutus. They were not issued for the purpose of being used at third parties, and only have intended use-cases within the Plutus project.
- And/or may be acquired as a speculative investment on the basis that (once traded) they may rise in price. There is no price guarantee and we expressly discourage this type of 3rd party usage.
- However, PLU are ERC20 tokens issued on the fully decentralised Ethereum network. Due to the decentralized and distributed structure of blockchain technology, any and all 3rd party uses are entirely at the users’ discretion and outside of the purview of Plutus. This means that 3rd party applications cannot be limited or restricted through any technical means on our side whatsoever, or likely by anyone else for that matter.
- Any other 3rd party methods of obtaining or trading PLU are not officially condoned by us, and we cannot take any responsibility or provide support for these case. These are entirely at the user’s discretion.
What is important to note here is that:
- Pluton do not have an ‘intrinsic value’ and do not confer any entitlement on the holder. They are equivalent to loyalty points, and there was no certainty that PLU would ever be bought or have market value.
- Essentially, PLU are a prioritised way to charge your Plutus balance and get rewarded for shopping.
- Charging your Plutus balance is an extremely indirect way of making ‘payment transactions’, and conceivably can’t really be described as such.
- More importantly, it is crucial to note that PLU does not represent ownership of any kind and do not contain or support any type of sharing mechanism. There isn’t, and hasn’t been, any promise of appreciation or speculative value. There are no buyback offers, no price guarantee, and no fund distribution to PLU holders. In summary, PLU are intended for usage in the Plutus ecosystem to encourage and reward using our service.
- We recommend obtaining PLU from either our PlutusDEX, or automatically as a reward for making deposits, which is a common practice similar to loyalty points or cashback programs used by airlines, grocery stores, clothing retailers, and many others.