Pluton | Tokenomics Explained

What is Pluton (PLU)?

Pluton is the world’s first crypto rewards token. The white paper was released soon after the Ethereum blockchain launched in 2015.

Every time you shop with a Plutus Visa Debit Card, you earn Pluton (PLU). Think of it as similar to earning in-store reward points or Avios Airmiles with an AMEX, except it’s crypto tokens that have more versatile use cases.

A detailed yellow paper on tokenomics was also released in 2017. The rewards model was later improved with the launch of Rewards 2.0 in 2020.

What Can You Do With PLU?

1) Unlock More Perks

Hold PLU in your own wallet and enjoy up to 8 Perks of your choice.

2) Unlock Higher Rewards Rates

Hold PLU in your own wallet and increase your Crypto Reward rate to 8%.

3) Convert it into Fiat

Unlike traditional loyalty programmes, PLU has a fiat value determined by other Plutus customers and can be swapped for GBP/EUR.

How Much PLU Can I Earn?

The more PLU you own, the more benefits you unlock. This is broken down into four distinct Reward Levels, with each requiring users to own a certain amount of PLU.

Minimum Rewards (0 PLU Required)

• 3% PLU Rewards
• 1 Perk

Maximum Rewards (2,000 PLU Required) — GOAT

• 8% PLU Rewards
• 8 Perks

How Do Customers Acquire PLU for Higher Reward Levels?

There are two main ways that customers acquire PLU:

1) Earning PLU

Every time you spend with your Plutus Card, you earn PLU.

2) Purchasing PLU

Sometimes, to fast-track the process, customers purchase PLU from other Plutus cardholders who earn them as rewards.

PLU’s Distribution

Unlike many crypto tokens, there is strong utility and a low circulating supply (plus a finite total supply) of PLU which creates scarcity and adds value. A reward pool of 20m PLU was created in 2016 and these are currently distributed as follows:

• Circulating Supply = 2.56m PLU (customer rewards)
• Pluton Rewards Pool = 17.44m PLU (locked for customer rewards)

The rewards you earn come from the Pluton Rewards Pool — it moves from the Pluton Rewards Pool into circulation when you spend with your Plutus Card. This is reconciled and verified quarterly by a third party, Haggards Crowther, a ICAEW-accredited UK accountant.

Learn more about the Pluton Rewards Pool >

How Long Will This Last?

The Pluton Rewards Programme was designed to last several decades. There are two factors that impact the longevity of the Pluton Rewards Programme.

1) Card Spending

The more customers spend, the more rewards we award to customers.

A user spends $100 in-store
3% of $100 = $3 worth of PLU

A user spends $200 in-store
3% of $200 = $6 worth of PLU

2) Value of PLU

The higher customers value PLU, the less PLU is emitted to customers.

A user spends $100 in-store
The user earns 3% in rewards (i.e. $3 worth)

PLU = $5
$3 worth of PLU = 0.6 PLU

PLU = $10
$3 worth of PLU = 0.3 PLU

What Determines the Value of PLU

1) Demand

Factors like additional utility for PLU and a larger customer base increase demand for the token. This results in more users owning PLU.

Example: Currently, just 1,250 GOATs would consume the circulating supply and cause a supply shock.

2) Supply

Increased card spending results in more PLU being emitted which increases the supply.

Currently, demand for PLU is growing faster than PLU is being emitted (i.e. supply). This creates a positive feedback loop that improves longevity.

1) Demand > Supply
2) Positive impact on the value of PLU
3) Higher value of PLU = Less PLU emitted
4) Less PLU emitted = Low circulating supply
5) Demand > Supply (repeat)

Note: Whilst PLU has a fiat value determined by customer demand and token supply, it is legally recognised as an in-game utility token similar to FIFA coins or Steam points. It was created to reward customers for everyday purchases and unlock additional features within the app. The token value is derived from customers earning PLU via rewards and swapping for fiat (on the PlutusDEX) with other Plutus customers looking to unlock additional reward features.

What is the longevity timeline for PLU Rewards?

The tokenomics are performing very well as evidenced by PLU’s trajectory compared to >90% of the market over the last 12 months. An event where the PLU supply runs out is near impossible if the demand for PLU continues to outpace the circulating supply.

Given the current data on demand and supply, and the fact that Plutus will be adding more utility (which will accelerate demand further), Plutus has no reason to believe that PLU will run out this century.

Decades from now, if the demand for PLU slows down creating a negative impact on the longevity of rewards, then any PLU collected via future use-cases (e.g. redeeming PLU to unlock paid features) will be added back to the rewards pool. Details of contingency plan will be released in 2023.

What Changes Are Taking Place to the Model?

In 2023, we will also be improving the model further to ensure the Pluton Rewards Programme can be sustained for multiple decades without ever lowering the reward rates. This involves a difficulty adjustment and additional utility for PLU — both of which will further drive demand for PLU and support the positive feedback loop detailed above. Full details will be revealed in due course.

Increasing demand for PLU, whilst simultaneously slowing supply, will strengthen the sustainability of the Pluton Rewards for 100+ years.