Rewards Pool | Balance Reconciliation (#7)
Plutus Card holders spent close to $70m in value and earned over $5m worth of PLU rewards. After March 22, 2024, Plutus will reconcile the rewards and transfer the balance from the Pluton Rewards Pool to account for rewards awarded to customers.
The Reconciliation
Between 1st October and 30th November, 2023, customers spent 9,996,005 GBP and 51,794,603 EUR, and earned exactly 866,091.11 PLU for rewards and perks.
Plutus will now reconcile the balance and transfer the 866,091.11 out of the Pluton Rewards Pool into Pluton Rewards (Payout Vault).
Out of the 866,091.11 PLU emitted, 179,044.88 PLU was awarded from the Plutus Treasury (which is normally reserved for company development, marketing, etc.). This will be returned to Plutus from the Pluton Rewards (Payout Vault) to be used for development, marketing, etc. as originally intended.
Transparency Measures
Since the card transactions are proprietary, including data from our banking service providers, we are legally bound not to reveal the transaction details publicly. Therefore, we have appointed our UK accountant, Haggards Crowther, to confirm that the transfer of PLU is supported by the proprietary transaction data.
See Verification from Haggards Crowther >
Plutus is working with such third parties (accountancy, legal, and self-custody firms) to uphold the integrity of the Rewards Pool that our customers depend on.
FAQ
Can You Explain the Background Context?
Plutus customers earn PLU from spending; this is emitted from the Pluton Rewards Pool. As this remains locked in cold storage, the amount of PLU awarded to customers has to be reconciled onto a Corporate hot wallet to be distributed.
Why does Plutus use a Corporate hot wallet to Issue Rewards to Customers?
The 2015 whitepaper outlines the use of a smart contract to distribute rewards from the Pluton Rewards Pool. However, given smart contract technology’s infancy with ongoing exploits, Plutus opted for a centralised solution to ensure the security and longevity of Pluton Rewards.
Why Are We Using A Third Party?
Since 2015, Plutus has been an innovation leader, introducing services like the world’s first crypto rewards token, paving the way for emulation. We’re committed to enhancing accountability and eliminating single points of failure in crypto.
Who Are Haggards Crowther?
Haggards Crowther is a highly accredited firm of certified Chartered Accountants based in London. They are certified by the Institute of Chartered Accountants in England and Wales (ICAEW).
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 rare for private crypto companies to take such steps, so we are proud to be one of the first.
What Are The Tokenomics?
For full details, please read our Helpdesk article here >
Does This Impact The Tokenomics?
No, the tokenomic model remains the same, this is merely a balance reconciliation. However, the circulating supply will increase as rewards are transferred from the Pluton Rewards Pool into circulation.
When will PLU be recycled into the Pluton Rewards Pool?
Plutus has implemented various initiatives to bolster the long-term tokenomics of PLU, including recycling PLU into the Pluton Rewards Pool. This transfer includes PLU emitted from 1st October to 30th November, 2023. Subsequent reconciliations will incorporate recycled PLU, ensuring sustained token longevity.
Is This The First Pluton Reconciliation?
No, this is the seventh Pluton Reconciliation, details of the first three can be found below:
