The Plutus New Whitepaper Is Bullish - Onwards And Upwards

0 26

Written by

#Club1BCH

2 weeks ago

In community: Everything Crypto(f12e)

I started using Plutus in 2022, when I embraced a new approach towards my day-to-day shopping. Why? Because I started earning 3% cashback in $PLU on absolutely every purchase and I tapped into some amazing perks!

Plutus provides a bank-like app with a loyalty rewards Debit Card, allowing customers to earn rewards in “Pluton (PLU).” These tokenised loyalty rewards can be swapped for real-world use, including card top-ups for spending at any store, travel discounts, and other lucrative benefits at 50+ Perk Partners.

What a non-brainer! I am earning $PLU for actions that weren't rewarded until then, such as buying a coffee or doing my weekly shopping. I am choosing my perks depending on my habits, and every time I obtain maximal benefits!

But there's more to come! The new Plutus whitepaper is bullish! The plan is to scale to millions of customers and continue providing lucrative benefits for Plutus users. The vision is to anchor PLU’s intrinsic value through a new set of utilities, and provide a timeless self-sustainable reward system.

The 2015 whitepaper introduced a reward system with a capped 3% reward rate that decreased as more customers joined, modelled to operate with 20 million pre-mined rewards pool for several decades at scale. It was updated in 2019, which has since led to significant growth, but it wasn't scalable to millions of customers worldwide.

The 2019 low reward level requirements boosted the demand but proved unsustainable. The approach has benefited the Plutus community but was not sustainable for scaling to millions of customers and the forecast was indicating failure by 2026.

The financial modeling forecast suggested changes and updates that will encourage productive engagement and ensure long-term success. The new roadmap was created and the users where invited to vote. "YES" was the way forward, with 63% of the total volume of weighted votes.

The updated tokenomics were implemented to make it easier for customers to access Reward Levels. The updates will include new sub-levels offering additional benefits, a utility dashboard for everyday services, and compounding rewards to boost customer engagement.

The goal is to simplify the system, make it more appealing for long-term use within the app, and enhance the token’s value by rewarding loyal customers with up to a 5x multiplier on continuous stacking and compounding rewards. This change may come with a shift towards a new blockchain.

The Plutus users indicated their preference for a blockchain network, and 67% of them would like to see $PLU on a Layer2. I agree with this and think Base or Optimism would fit the purpose. Only 8% would like to see a Plutus Layer2, but things like this are time consuming and financially expensive.

While Ethereum has served Plutus well, there are now alternative blockchain solutions that better support the new long-term mission of providing the most rewarding and accessible loyalty rewards. Migrating PLU to a new blockchain will provide only benefits.

To scale Plutus to millions of customers and keep offering great rewards, the team had to build self-sustaining features and limit new tokens from entering circulation. Instead of constantly issuing new tokens, the system removes existing tokens from circulation and recycles them into the Rewards Pool.

This keeps PLU scarce while ensuring the Rewards Pool is always full, allowing Plutus to provide more rewards without minting new tokens in a self-sustaining loop. There will always be additional benefits for active participation and loyalty.

The process of recycling PLU back into the Rewards Pool is known as FUEL, and there are three core FUEL initiatives that ensure 100% self-sustainability of Compounding Rewards Yield and up to 50% of Reward and Perk emissions. The fees from DEX transactions, third-party wallet transfers and utility redemptions will power the FUEL collection mechanism.

Compounding Rewards Yield (CRY%) allows customers to earn up to 10% in compounded rewards by stacking their earned rewards over time or by stacking their total tokens in self-custody wallets they control. These rewards are entirely self-funded through recycled tokens via FUEL.

It's time to up the game and enhance my earnings. So far I am earning decent through the three perks and monthly spending. Earning at least 10 $PLU Netflix, Shell and Asda, and a lot more by casually shopping or treating myself. The secret is to always pay with Plutus!