PLUTON CROWDSALE — HOW IT WILL WORK (Update V0.2) Source: Medium (Se bottom for link)
The Plutus team has been working overtime to finalise all the details for the Pluton sale. For the Plutus Founding Members, entrepreneurs, fans and everyone else within the blockchain ecosystem wondering how exactly the sale will work, this post outlines the details of the Pluton sale, and explains exactly what your contribution will get you in return for supporting Plutus.
WHAT ARE PLUTONS?
The Pluton sale will secure you a contactless balance of Plutons, which can be used to Tap & Pay anywhere. Within the app, Plutons are prioritized over Bitcoin and Ethereum with the added benefits of 0% fees and instant conversions at the point-of-sale.
Plutons are digital tokens issued to users on the Ethereum blockchain. Plutons can be distantly compared with cashback points or frequent flier miles programs.
Only 850,000 Plutons (PLU) will be available for sale, which represents 4.25% of the total supply of 20,000,000. Issuance is limited, which means there will be a very low circulation from the initial distribution and a total of 20 million Plutons ever created.
The reason for this is simple, Plutons will slowly (and automatically) be released as a rebate to users of the Plutus app. Their availability is designed to be rare but during this sale, you have the chance to get in early and secure your balance for daily spending on the Plutus app in advance. As a result, you will not have to spend any conversion fees like everyone else!
How many Plutons will I receive?
The amount of Plutons you receive will be proportional to the amount of bitcoin you contribute divided by the total funds raised. This means that the value of 1 Pluton will be established at the end of the crowdsale based on the total amount of BTC and ETH raised.
To make the math simple, If a combined value of BTC and ETH raised during the token sale is equal to 100 Bitcoin for 850,000 Plutons, then the value of each Pluton will be 0.0001 BTC
The exchange rates of ETH and BTC that are used to determine the distribution of Pluton will be calculated from the market rates at the time of the sale’s end.
Once the value is determined by the marketplace at the end of the crowdsale, your account used for purchase will be credited with Plutons. Subsequently this balance will always be verifiable on the ethereum blockchain — the Pluton token contract.
Plutons purchased during the crowdsale will be first distributed to participants after the crowdsale has ended. They will be available for use on the Plutus app at its launch, so the same account you use during the token sale will enable you to access these tokens directly from the app.
Will there be a bonus?
Participants who purchase Plutons early from the crowdsale will receive a bonus. The bonus will be time stamped from the Blockchain and will be added towards the final balance awarded at the end of the crowdsale.
When will the sale start and how long will it last?
The sale will start very soon and will run until the 30th June. (the start date will be announced in a follow up blog).
You will be able to participate using:
BTC sent directly to the Pluton crowdsale multi-signature Bitcoin wallet provided by BitGo. You will also require to save your ETH address to receive your Pluton(s) if you choose this option.
ETH is sent directly to the Pluton crowdsale multi-sig contract address on the Ethereum wallet. Pluton(s) will be issued directly to the Ethereum wallet that is used to send ETH.
Plutus.it only gains access to all of its funding, once it has reached important development milestones.
Plutons are sent to your Etheruem wallet once the crowdsale has ended. However, Plutus.it only withdraws a smaller portion of the funds raised until all self-imposed milestones are reached. This necessary step for crowdsale governance is taken to protect the value of Plutons (during the development phase and at pre launch stage of the Plutus Tap and Pay app), which will be established at the end of the sale.
BTC raised will be stored in a multi-signature account provided by BitGo at the end of the crowdsale — only to be released according to guidelines set and milestones of Plutus development.
ETH raised will be stored in a separate multi-signature smart contract — same rules will apply to this wallet.
40% after crowdsale
10% after the launch of Plutus DEX
50% after the launch of the Plutus Mobile Payments App
Note: Details of multi-signature wallet and verifiable public addresses will be posted here and on Github before the start of the sale.
Why two separate crowdsale fund pools?
The first release of 40% payment will be used for the development overhaul of the project and will be deducted from the funds secured in BTC. The reason for this is simple — we believe in the long-term development and the future growth of the Ethereum ecosystem, so as a choice, we prefer to keep the ETH locked in until after all the milestones are complete.
The second reason is technical — since the Plutus payment system is built on the Ethereum network, we will also require ETH for system operations in the future as well as continued development of the service.
Why is a decentralised rebate system such as Plutons important to Plutus.it and why does it have to be included in the payment system?
The idea behind a decentralised rebate system is not intended exclusively for digital currency users. In the future, direct fiat deposit will be an option for the unbanked with access to a smartphone. Other use-cases such as online checkout with a virtual debit card powered by Pluton as a payment option will also be available as a service.
We believe that users who use direct fiat deposits will have a chance to be introduced to the Bitcoin and Ethereum blockchain ecosystem in a practical manner.
Can Plutons be traded outside the payment system?
Plutons represent a value decided by the users of the Plutus payment network, their value is stored as a digital asset on the blockchain but are not to be used as currency or money. These are transferable fungibles so if you have any unused Plutons purchased from the crowdsale then you can also trade them with another user on any exchange or service that may host a Pluton wallet.
Users who register on the PlutusDEX will be able to purchase Plutons directly from the app users, who will then be able to withdraw them from the Plutus payment network and trade externally with other users who wish to obtain them to use on the app because of zero fee and instant conversion.
Please note: Plutons will always be at zero fee and prioritised within the entire Plutus payment system. The uses case offered for Pluton by Plutus.it is for the in-app use of the Plutus Tap and Pay app and other services such as online payment options that Plutus.it will provide in the future.
Daily and monthly spending limits on a virtual debit card will be in accordance with Anti-Money Laundering and other legal requirements. More details on this and above information provided will be expanded in our purchase agreement.
We highly recommend to hold your reserve obtained from participation in the crowdsale and only utilise the optimal use case for Plutons, that is to be traded at zero fee on the PlutusDEX in exchange for a contactless payment balance on the Plutus Mobile App.
Pluton crowdsale early termination clause and funding expectations
Due to the unexpectedly large amounts raised in recent crowdsales, we are taking precautionary steps by adding a maximum cap of a BTC and ETH equivalent of 32,000 Bitcoin for the total amounts of funds raised during the Pluton token sale, which, if achieved, will end the sale early. Unlike the DAO tokens, the Plutons have a entirely different purpose, so raising more funds than required for the development of the operational structure and longevity of the business model would simply give the tokens an unrealistic value at an early pre-launch stage of the Plutus Mobile App.
Although our expectations are far lower than the set cap amount, we have however decided to set this cap limit as a added a precautionary step to protect the value and stability of the token prior to launch of the Plutus app. This is also the reason we have decided to leave majorty of the funds locked in multi-sig wallets until all milestones are successfully delivered. The steady growth of Plutons is critical to the Plutus payment system because the token valuation has a direct effect on the longevity and emission rate of the rebate system. In depths details of how the Blockchain powered rebate system, Pluton works, can be found in the Plutus White Paper.
There is no minimum set requirement for the sale, however the cost to develop the operational structure and launch the product will be less than the set cap amount.
Our aim is to depend on the business model for the continuation of the operations as well as secure funds via the crowdsale to fund the long term business development plan without seeking any further, external funding. This is the optimal scenario to fund the project as it will also enable us to reduce margins and offer lower fees to our users.
Please Note: The token crowdsale does not signify any equity or profit in the company. Nonetheless, we will keep working diligent and transparently throughout the process and keep the Pluton crowdsale participants and our supporters updated on our progress via our many communication channels.
Why a crowdsale is necessary for Plutons?
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 2000 years.