Rewards Pool | Balance Reconciliation (#3)
In the last ~5 months, Plutus has awarded $6.3m worth of rewards to Plutus Cardholders. On 6th February 2023, Plutus will transfer just over 590k PLU from the Pluton Rewards Pool to account for rewards awarded to customers.
To help you understand the breakdown of transfers, here is an update on the new payout structure moving forward.
New Payout Structure
To further strengthen the integrity of Pluton Rewards, Plutus has integrated Fireblocks, a self-custody and settlement platform. This is the first step towards our 2023 mission to automate the verification and withdrawal processes of PLU Rewards.
Fireblocks will contain a new ‘Pluton Rewards (Payout Vault)’. This will act as a more secure and efficient interim between the Pluton Rewards Pool (deep cold storage) and withdrawals to customers’ personal wallets.
Transfers from both of these wallets will require multi-signature approval between the Plutus management and regulated third parties such as accountancy and law firms; as well as external verification of proprietary card transaction data. These measures are unprecedented in the space and are taken to reduce the risk of a single point of failure, improve security and accountability, and maximise transparency for customers.
The Reconciliation
Between 8th August 2022 and 20th January 2023, customers earned exactly 590,880.31 PLU for rewards and Perks. Plutus will now reconcile the balance and transfer the 590,880.31 PLU out of the Pluton Rewards Pool into Pluton Rewards (Payout Vault).
Out of this 590,880.31 PLU earned by customers during the quoted dates, 266,132.83 PLU has been withdrawn by customers, and 324,747.47 PLU remains as internal balance.
Transparency Measures
Since the card transaction data 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 deliver a trustworthy rewards token that customers can depend on.
FAQ
Where Did PLU Reward Withdrawals Come From Prior to The New Payout Structure?
PLU Reward withdrawals to personal wallets have been partially awarded from the Plutus Treasury prior to the new Payout Structure described being implemented.
Therefore, 169,511.50 PLU out of the total amount drawn will be transferred from the Pluton Rewards (Payout Vault) back to the Plutus Treasury to account for withdrawals covered during the reconciliation dates. This has been verified by a regulated third party, Haggards & Crowther.
All future PLU Withdrawals will come directly from the new Pluton Rewards (Payout Vault).
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 being emitted from the Pluton Rewards Pool into circulation.
Is This The First Pluton Reconciliation?
No, this is the third Pluton Reconciliation, details of the first two can be found below:
When Will My Pending PLU Withdrawal Be Processed?
PLU Withdrawals were temporarily paused during the Pluton Reconciliation. Any currently pending PLU Withdrawals will be processed on Monday 6th February 2023. Following this, Plutus will return to the usual weekly PLU Withdrawal cycle.
Due to a Pending PLU Withdrawal, I Fell Below my Reward Level?
If you have a pending PLU Withdrawal queued recently, and this impacted your Reward Level, please contact support and we will retroactively add any PLU you are entitled to.
