Rewards Pool | Balance Reconciliation
Since the launch of our current card programme in November 2019, Plutus cardholders have made over 580,000 card transactions and spent close to $30,000,000 in value across both GBP/EUR-denominated Plutus Cards. From launch until 30th April 2022, Plutus has awarded 197,866 PLU to its customers.
This amount in rewards was paid out from the Plutus Corporate Treasury (Development Fund) to avoid regular transactions from the Pluton Rewards Pool secured in deep cold storage.
Plutus will now securely move 197,866 PLU owed from the Pluton Rewards Pool to the Plutus Corporate Treasury (Development Fund).
Since the transaction data is proprietary and includes our banking service providers, we are legally bound not to publicly reveal these details. Therefore, we have appointed our UK accountants, Haggards Crowther, to verify that the transfer of PLU is supported by the proprietary transaction data of Plutus Card holders.
Plutus plans to automate its rewards approval and withdrawal process. As a result, we are scoping out a development plan to create segregated hot wallets for PLU rewards which will be linked to the Pluton Rewards Pool in deep cold storage. All future transfers out of the Rewards Pool will be regularly checked by a third party to provide transparency and protect the longevity of the tokens.
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. Therefore, 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.
What Will Plutus Do With the 197,866 PLU?
The PLU being returned to the Development Fund will be used for awareness-based marketing campaigns for the international expansion of the Plutus Card and its native Reward token.
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 a supply of 17.15m 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 awareness.
What Are The Tokenomics?
For full details, please read our HelpDesk article here >
What Does the Treasury Structure Look Like?
1.85m PLU (out of a total supply of 20m) has come into circulation via public token sales in 2016 and 2020.
The 197,866 PLU awarded to customers was part of the existing circulating supply, owned by Plutus, and is now being returned from the Reward Pool.
An additional 1m PLU was awarded to the Plutus Development fund via a community vote during PLIP in September 2020.
Important Note: The Plutus Development Fund of 1m is currently held in the same deep cold storage wallet as the Pluton Rewards Pool. The combined tokens amount to ~18.15m before reconciliation.
For full details of token fundamentals, read our HelpDesk article here >
Why Has Plutus Not Touched Its 1m Plutus Development Fund?
Plutus has been incredibly lean with its budget for marketing and awareness campaigns and only utilised tokens that were awarded by the community via PLIP.
Note: Plutus has no immediate plans to utilise the remaining 1m PLU within the Plutus Development Fund. An announcement will be made in advance of any potential transfers to continue maintaining transparency.
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.