A lot of people have been keeping an eye on the Plutus project, which will enable cryptocurrency payments near any NFC terminal. The team behind Plutus has started their Pluton crowdsale and posted some details as to how the process will work.
The Pluton Crowdsale and Its Importance
There has been a lot of focus on the Plutus concept as of late, as well as its underlying PlutusDEX exchange, which allows for instant conversion from supported cryptocurrencies to fiat to complete NFC payments. But at the same time, there will also be Plutons, which are tokens issued in return for financial contributing to the Plutus project.
First of all, it is important to note a Pluton will be a digital token issued to holders over the Ethereum blockchain. The team envisions every one of these tokens as a form of cashback point, rewarding users for their loyalty to the platform. Every Pluton can be instantly converted through the Plutus mobile app – set to release later this year – allowing users to spend their tokens on everyday purchases.
Why this Crowdsale is Different
It is not the first time the topic of offering cryptocurrency users a cash-back or rebate system has been proposed, but no one has managed to come up with a satisfactory solution just yet. The Plutus team feels they can be the first ones to do so while powering all of the platform payments through the blockchain. Spending more money through Plutus will earn users more tokens and rewards, it is that simple.
As one would expect, there is a crowdsale linked to the issuance of Plutons, albeit only 850,000 out of 20 million tokens will be sold during this period. The rest of this amount will be released to users of the Plutus app as part of their rebates over time, and the team hopes a lot of people will take a liking to this solution to spend cryptocurrency wherever NFC payments are accepted.
The Plutus team explained the necessity of this crowdsale as follows:
Although the funding from the crowdsale will accelerate the development of the Plutus project it also has the primary advantage to determine the value of Plutons directly by the users themselves. This value is required by the rebate system to determine the emission rate and longevity of the rebate pool, which changes according to the value of the tokens. To provide a theoretical example, if the value is under 0.001 BTC then the rebate pool’s longevity will end after year 2216 and if higher than 0.01 then the rebate pool will last over 2,000 years.
Moreover, it is equally important to keep in mind there is no fixed value per Pluton right now. Every token’s individual value will be decided upon at the end of the crowdsale, based on the total amount of Bitcoin and Ethereum invested. This is quite a significant change from most crowdsale projects, where the price per token is determined in advance and decreases over time.
Both Bitcoin and Ethereum are supported for the Pluton crowdsale, and the Plutus team is using multisignature addresses for both cryptocurrencies. Moreover, all of the altcoins supported by Shapeshift will be eligible for making purchases as well, although that funds will be converted to bitcoin immediately. None of the funds will be released until critical development milestones are reached.
Last but not least, the Pluton token should never be seen as currency or money, even though they can be transferred to other users on the PlutusDEX platform. Limitations regarding the usability of these tokens are put in place due to legal reasons, although the main purpose is to create stability by keeping the external supply limited to the PlutusDEX platform alone.
What are your thoughts on the Plutons crowdsale? Will you participate through Bitcoin, Ethereum, or a different coin? Let us know in the comments below!
Images courtesy of Plutus, Shutterstock, Ethereum