Rewards Pool | Balance Reconciliation (#2)
In the last ~3 months, Plutus has awarded over $2m worth of rewards and Perks to Plutus cardholders! Plutus will now be reconciling these balances to account for the rewards paid out.
The following wallet currently contains:
- Pluton Rewards Pool — 16,950,133 PLU
- Plutus Development Fund — 1,000,000 PLU
On 30th August 2022, Plutus will securely transfer the following token quantities:
- 263,538 PLU from the Pluton Rewards Pool
- 250,000 PLU from the Plutus Development Fund
Note: These updates will be reflected on our tokenomics HelpDesk article here >
Pluton Rewards Pool Transfer | 263,538 PLU
Plutus will be transferring 263,538 PLU from the Pluton Rewards Pool to account for rewards it has issued to Plutus cardholders.
Plutus cardholders made over 726,174 card transactions and spent exactly $31,031,688.69 between 30th April 2022–20th August 2022. At a variable reward rate of 3–8% and up to 8 Perks, Plutus has awarded 263,538 PLU during this period to cardholders.
This amount in PLU was awarded to customers from the Plutus Treasury until our new automated system is in place. Plutus will now transfer the 263,538 PLU owed to the Plutus Treasury from the Pluton Rewards Pool.
Since the card transaction data is proprietary, including data from our banking service providers, we are legally bound not to reveal the details of these publicly. Therefore, we have appointed our UK accountant, Haggards Crowther, to confirm that the transfer of PLU is supported by the proprietary transaction data.
All transfers out of the Pluton Rewards Pool will be regularly checked by a third party to provide transparency and protect the longevity of the tokens.
Plutus plans to automate its rewards approval and withdrawal process. This will involve creating segregated hot wallets for PLU rewards, which will be linked to the Pluton Rewards Pool in deep cold storage.
Plutus Development Fund Transfer — 250,000 PLU
Plutus will be transferring 250,000 PLU from its Plutus Development Fund to utilise for marketing and international expansion plans.
A small percentage of PLU’s total supply (5%) amounting to 1m PLU was allocated to the Plutus Development Fund by order of a community vote in 2020. This is currently held in deep cold storage alongside the Pluton Rewards Pool.
Plutus has been incredibly lean with its budget for marketing and awareness campaigns and has, so far, only utilised PLU which was already in circulation.
With the United States launch approaching, now is an appropriate time to utilise the PLU within the Plutus Development Fund for marketing to help Plutus scale. On 30th August 2022, Plutus will be transferring 0.25m PLU from the 1m PLU held in the Plutus Development Fund.
Haggards Crowther will oversee this transfer of PLU to maintain the integrity and longevity of the Pluton Rewards Pool.
Plutus will continue to be cost-conscious with its budgeting and ensure that this PLU is used effectively over an extensive period of time, maintaining the community’s interests at its core.
Can You Explain the Background Context?
Plutus customers earn PLU from spending; this is emitted from the Pluton Rewards Pool. Thus far, Plutus has been awarding PLU to customers from its Corporate Treasury (Development Fund) rather than directly from the Pluton Rewards Pool wallet. We are now reconciling the balances and, moving forward, we will look to streamline the process whereby all Rewards will be emitted directly from the Pluton Rewards Pool.
Why has Plutus Been Using Its Plutus Corporate Treasury (Development Fund) to Issue Rewards to Customers?
The original whitepaper describes the use of a smart contract to issue rewards from the Pluton Rewards Pool to customers, however, smart contract technology is still in its infancy and the industry continues to be plagued by exploits. Plutus did not feel comfortable jeopardising the security of its entire Rewards Programme and product with the use of a smart contract.
How much of the circulating supply is being held for additional rewards?
The tokenomics of our rewards and Perks were designed to maintain a low circulating supply.
According to internal data, Plutus customers are currently holding over 50% of the circulating supply (1m+) to unlock additional rewards and Perks and spending over $10m every month.
It takes <1,150 G.O.A.Ts to consume the current circulating supply and Plutus currently has 50,000+ customers on the waitlist soon to be onboarded, as well as a United States Launch in Q1. We expect this to increase demand for additional rewards and Perks which will have a positive impact on the circulating supply.
Who Are Haggards Crowther?
Haggards Crowther is a highly accredited firm of certified Chartered Accountants based in London. They are a certified member of the Institute of Chartered Accountants in England and Wales (ICAEW).
Why Not Continue Issuing Rewards From the Plutus Development Fund?
The Pluton Rewards Pool was created for the sole purpose of rewarding our customers for purchases made with a Plutus Card. It has a longevity of several decades and, as of today, a supply of 16.7m PLU which can only be emitted to cardholders.
The Plutus Development Fund is part of the Plutus Treasury, which is used for marketing campaigns and improving token and Card awareness.
What Are The Tokenomics?
For full details, please read our HelpDesk article here >
Does This Impact The Tokenomics?
No, the tokenomics remain the same, this is merely a balance reconciliation.
Why Are We Using A Third Party?
Since its inception in 2015, Plutus has been an innovation leader, delivering never-before-seen services such as the world’s first Crypto rewards token. It has paved the way for many others to emulate a similar model.
We want to continue setting a precedent by verifying reward-related transactions with ICAEW-certified third-party accountants to help maintain trust and transparency. It is very rare for private Crypto companies to take such steps, so we are proud to be one of the first.
When Did the Community Allocate 1m PLU to the Plutus Development Fund?
In 2020, by order of a community vote, it was agreed unanimously to allocate 1m PLU from the Pluton Rewards Pool to the Plutus Development Fund (held and managed by Block Code Ltd.) to be unlocked at a later date for long-term development and marketing of the product.