Articles
The Min. £/€10 Anchor and Revenue-Driven Utilities: Safeguarding PLU Rewards
5 min read
We explain how our utilities and revenue system work, and the steps we’re taking to keep the ecosystem valuable and sustainable in the long run.
All utilities (except PlutusGifts) fund themselves and generate revenue through several sources:
Initially, the cost of growth utilities like PlutusGift is funded by Plutus' net earnings from various revenue streams, supplemented by a fair and balanced fee to ensure growth.
Since PlutusGifts doesn’t generate revenue directly like all other utilities, Plutus will cover its costs during the initial launch phase starting November 30th. A fair and balanced fee will be applied for redeeming 1 PLU for a €/£10 gift card. As the ecosystem expands, our dynamic fee structure will gradually decrease, creating a healthier system with minimal fees. This approach ensures the feature remains sustainable and appealing to customers.
Join our community feedback session on 14:00 GMT, 21 November to help shape the fee structure.
The original system, designed in 2015, relied on valuations influenced by external conditions rather than aligning with tangible in-app features. These external factors, often driven by trends rather than fundamentals, could affect the perceived and actual value of PLU rewards, potentially impacting sustainability and customer experience.
In Q1 2025, Plutus will anchor both in-app redemption (except for PlutusSwap) and emission values to a minimum of £/€10, based on the tangible benefits offered in-app. This mechanism ensures stability by providing a predictable and consistent minimum value for PLU rewards on features like PlutusMiles & PlutusTravel, regardless of external conditions.
Drawing inspiration from established loyalty systems like Air Miles, which regulate both redemption and emission values in-app, Plutus employs a similar model that ensures rewards maintain their intrinsic value. For example, a Mile worth £0.10 at the issuer cannot be devalued by disruptive external factors.
By setting a minimum floor value with no maximum threshold, Plutus prevents rewards from being undervalued, supports growth, and maintains a robust system that remains unaffected by adverse conditions, ensuring long-term sustainability and trust.
Plutus pre-funds the gift card feature to cover service costs and applies a fair fee for sustainability. The starting fee is temporarily set at 30%, as recommended by the community in a recent feedback session (details below), and will decrease or adjust dynamically.
The fee structure is dynamic and adjusts based on the current PLU emission rate in-app, determined by external sources as outlined in our legacy tokenomics from 2015.
By mid-Q1 2025, we aim to implement a £/€10 minimum anchor for both redemptions and emissions in-app, at which point fees will be reduced to a minimal level, ensuring that 1 PLU equals a £/€10 gift card with little to no extra costs. Until then, fees may gradually decrease or adapt according to the current emission rate in-app.
To ensure scalability, fees may temporarily increase for high-volume transactions until the anchor is fully established, with adjustments clearly communicated in the app. For example, redeeming PLU for multiples of gift cards may incur a temporary fee of +10% or more, depending on the feature's usage across the platform. This aligns with our fair usage policy and helps the feature scale effectively for all customers to enjoy until the anchor is in place early next year.
No, there is no universal limit on the total number of redemptions across all available brands and regions. However, during the initial MVP launch, a limit of 2 swaps per brand applies. The enhanced version, set to launch in Q1 2025, will include a wider range of merchants and significantly more redemption options, featuring gift cards valued up to £/€1,000 each.
Note: Some brands may have specific transaction limits and thresholds. These conditions will always be clearly communicated in the app whenever they apply.
Yes! As part of our commitment to the Whitepaper 2024 vision, we’re working to anchor each 1 PLU earned in-app to a £10 tangible value for redeemable benefits. Selected UK and EU brands will offer 0% fee gift cards, which will be clearly displayed in the app. Please note, these offers may change periodically, and each brand has a limit of 2 gift cards per user until further notice.
The £/€10 anchor will be introduced as follows:
Note: Since these features rely on third parties, the exact implementation date cannot be guaranteed unless specifically announced and may be subject to change.
The minimum anchor ensures that the value of PLU rewards in-app can never fall below £/€10 tangible value for redeemable benefits on the utilities we plan to offer. However, it can increase in-app to align with features that give higher real-world benefits. For example, based on our recent white paper model:
This approach provides stability while allowing for growth.
We take your feedback seriously and want you to be part of our journey! Your input during recent community sessions has been crucial in shaping a fair and balanced fee structure for PlutusGifts and PlutusMiles. For example, the initial fee for PlutusGifts was set at over 50%, but after listening to community suggestions, it was reduced to 30% and will continue to dynamically adjust and decrease over time (as explained in FAQs above).
Want to make an impact? Join our PlutusTravel feedback session this December. Your input helps shape the future, driving growth and enhancing the experience for all customers. Send us a support request to join.
Access to PlutusGift and other utilities is rolled out in segments, mainly due to PLU audits. Customers who passed audits this year usually get access first. However, we’re prioritising those who haven’t requested third-party payouts and adhered to all our terms and conditions. This is part of our effort to reward our most loyal customers.
Yes! There is a special promotion for selected loyal members who have received an email.
Participants in this promo will get 100% of their PlutusGift fees refunded in PLU for December transactions. The refund will be based on the PLU rate on the day of each transaction. For example, if you redeem 1 PLU for a £/€10 gift card on 1st December, the refund will be calculated using the PLU rate on that specific day. All refunds will be credited to your account by 10th January 2025.
For more details, visit the helpdesk for PlutusGift Promotion Terms.
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