In Q3, Plutus Card holders spent close to $100m in value and earned nearly $5m worth of PLU rewards. On 15th December, Plutus will reconcile the rewards and transfer balance from the Pluton Rewards Pool to account for rewards awarded to customers.
The Reconciliation
Between 1st July, 2023, and September 30th, 2023, customers spent 15,252,573.51 GBP and 65,286,898.87 EUR, and earned exactly 853,293.56 PLU for rewards and perks.
Plutus will now reconcile the balance and transfer the 853,293.56 PLU out of the Pluton Rewards Pool into Pluton Rewards (Payout Vault).
Out of the 853,293.56 PLU emitted, 221,557.79 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 some of the card transaction is 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. Thus far, Plutus has been awarding PLU to customers from its Corporate Treasury (Development Fund) or hot wallets rather than directly from the Pluton Rewards Pool wallet. We are now reconciling the balances and, in the future, we will look to further 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. Smart contract technology is still in its infancy and the industry continues to be plagued by exploits. Plutus felt uncomfortable jeopardising the security of Pluton Rewards with the use of a smart contract.
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 are determined to continue doing the same by improving accountability and removing the risk of a single point of failure that plagues 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.
Is This The First Pluton Reconciliation?
No, this is the fourth Pluton Reconciliation, details of the first three can be found below:
