Tiered Reward Levels & Subs
As part of our long-term vision to further extend the longevity of PLU rewards pool, we announced the Difficulty Adjustment last year which went into effect last month.
Currently, over 80% of the total circulating supply (4.1m) is stacked by Plutus Cardholders, both on and off-chain, and our data has shown that users are continuing to rapidly join higher reward levels. With that in mind, and given the low circulating supply of the token, we want to further increase demand for higher reward levels and amplify the expected supply shock.
As Plutus continues on its journey of growth as a company, we will be unveiling further improvements on Monday, 7th August. These updates will:
- Scale the business sustainably
- Protect the longevity of the rewards pool
- Increase demand for higher reward levels
What are the changes?
By implementing the following changes, we can increase demand for higher reward levels and reduce emission rates — two things that greatly net benefit token holders. Changes will include:
- Evolution of our subscription plans
- New sub-Reward Levels
- Increased benefits for stackers
Post difficulty adjustment, the reward levels remain great “value-for-money” in comparison to the rest of the industry. With these upcoming updates, we will achieve our objectives of remaining one of the most cost-effective rewards cards in FinTech, whilst ensuring longevity of PLU Rewards Pool for decades to come.
How Does This Improve Plutus?
Naturally, some customers who were accumulating PLU via rewards may consider giving up on their reward level goals due to the increased difficulty. However, we have both on-chain and internal data that show a record number of stacked PLU. Our month-on-month growth has continued with over 192,000 new PLU being stacked for the month of July.
Currently, only 4.9% of users secured a reward level which shows positive room for growth. A large subset of users who have not yet joined a reward level and this is mainly influenced by two factors:
- New customers find it challenging to get on a reward level
- Subscription plans are more appealing than reward levels
For the difficulty adjustment to work effectively, we need to expand on our model so that it appeals to users at all stages of their rewards journey.
Our low-cost and high-benefit pricing model was introduced in 2021 with Plutus Rewards & Accounts 2.0, to create a low barrier of entry for risk-averse customers. Now that we have reached a user base of ~100,000 customers, it is natural to evolve our subscription plans and reward levels, in line with the difficulty adjustment, so that both the business and the rewards pool can scale to our next million customers.
Importance of Feedback
It’s also worth noting that we care deeply about our customers, especially those on a reward level who continue to support Plutus’ every decision. For those who have been with us, you will know that we take our customers’ feedback seriously — these upcoming updates are based on your input and requirements.
We want people to benefit through a free crypto loop where you earn as you spend. However, as the user base quickly grows, we want to ensure we can continue giving out these benefits for many decades, instead of continuing to emit high volumes of PLU to non-participants during the growth stages of the company.
PLU Utility…
As a personal commitment I made at the start of the year, we remain on target for achieving many of our core goals for 2023, however, we want to place heightened emphasis on adding token utility. This includes improving our reward levels and redeeming PLU for paid features, merch, metal cards, and more which we will detail in our upcoming blog update.
Instead of simply emitting more PLU, we want to introduce new features that add value to the actual PLU token’s use case and its holder’s day-to-day experience with the app. It is going to be an exciting 12 months for the Plutus ecosystem.
I will be holding a Twitter Spaces session tomorrow at 3pm GMT+1 (UK) to discuss this blog and other exciting news we have coming out next week related to the teaser video we released yesterday.
