Plutus announced yesterday that they will adjust the Plutus Difficulty levels over time during 2023. Plutus has four difficulty levels: Hero, Veteran, Legend and GOAT (greatest of all times). Depending on how much PLU you stake, you qualify for one of them, and the harder the Plutus difficulty levels, the more benefits you earn. For example, with GOAT you can get 8% cash back and 8 perks.

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Starting in 2023, the levels will be the same, but the amount of PLU you need to hold to qualify will be increased every quarter, as you can see in the table below. According to Plutus, the goal with this update is both to further increase the longevity of the Pluton Rewards Pool, and to add value to early adopters of the Plutus Card.

Plutus Difficulty Levels Adjustment During 2023 — Plutus Difficulty Levels Increments for 2023

Plutus Difficulty Levels Adjustment Update

The PLU requirements for each Reward Level will increase incrementally. This is similar to how the Bitcoin Halving is used to manage supply and demand. Once you have unlocked a Reward Level, that level is grandfathered in and will no longer be subjected to future difficulty adjustments.

Note: Your PLU balance must still remain above the grandfathered requirements to keep that Reward Level.

There are two key reasons behind the update:

Reward Levels become more challenging to attain over time: fewer users reaching higher Reward Levels will decrease the rate at which PLU is emitted over time.
Demand for PLU rises as Plutus’ user base grows and additional utility is added. This results in more users trying to reach higher reward levels: any positive impact on PLU’s value results in less PLU emitted.

Is it worth qualifying for harder Plutus difficulty Levels?

A common question is whether it is worth making the effort to stake and hold PLU, or not. Unlike other platforms like Crypto.com, one of the advantages of Plutus is that you do not need to stake anything to get some of the benefits (read my story with Crypto.com here). However, let’s have a look at the Plutus Reward thresholds and reason about amortization.

Keep in mind that all the calculations here are assuming an average monthly spending of €2000 with your Plutus Card. If you spend more, times will be shorter, and similarly if you spend less.

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Is Plutus Hero worth it?

To unlock the Plutus Reward Hero level, you need to stake 250 PLU, which as of today, is roughly €2000. With Hero, you get 4% back and 4 perks. The value of the perks are roughly €10, so the total you get back per month (including your free perk when signing up for Plutus), is €50.

Let’s say you spend €2000 a month with the Plutus Card. As you will get 4% back, that means an extra €80 in your pocket every month.

The total cash back (in PLU) at this rate will be €130, which means it will take you 15 months until you amortize the amount you staked to unlock Plutus Hero. Note that after that 15-month period you will still have 250 PLU in your wallet, which could be worth €2000, but also less or more, depending on the market fluctuation.

Is Plutus Veteran worth it?

To unlock the Plutus Reward Veteran level, you need to stake 500 PLU, which as of today, is roughly €4000. With Veteran, you get 5% back and 5 perks. The value of the perks are roughly €10, so the total you get back per month (including your free perk when signing up for Plutus), is €60.

Let’s say you spend €2000 a month with the Plutus Card. As you will get 5% back, that means an extra €100 in your pocket every month.

The total cash back (in PLU) at this rate will be €160, which means it will take you 25 months until you amortize the amount you staked to unlock Plutus Veteran. Note that after that 25-month period you will still have 500 PLU in your wallet.

Is Plutus Legend worth it?

To unlock the Plutus Reward Legend level, you need to stake 1000 PLU, which as of today, is roughly €8000. With Legend, you get 6% back and 6 perks. The value of the perks are roughly €10, so the total you get back per month (including your free perk when signing up for Plutus), is €70.

Let’s say you spend €2000 a month with the Plutus Card. As you will get 6% back, that means an extra €120 in your pocket every month.

The total cash back (in PLU) at this rate will be €190, which means it will take you 42 months until you amortize the amount you staked to unlock Plutus Legend. Note that after that 42-month period you will still have 1000 PLU in your wallet. Also, keep in mind that presumably, people who stake a higher amount are also likely to spend more every month.

Is Plutus GOAT worth it?

To unlock the Plutus GOAT level, you need to stake 2000 PLU, which as of today, is roughly €16000. With GOAT, you get 8% back and 8 perks. The value of the perks are roughly €10, so the total you get back per month (including your free perk when signing up for Plutus), is €90.

Let’s say you spend €2000 a month with the Plutus Card. As you will get 8% back, that means an extra €160 in your pocket every month.

The total cash back (in PLU) at this rate will be €250, which means it will take you 64 months until you amortize the amount you staked to unlock Plutus GOAT. Note that after that 64-month period you will still have 2000 PLU in your wallet. Also, keep in mind that presumably, people who stake a higher amount are also likely to spend more every month.

Plutus Reward Levels FAQ

Here’s a series of frequent questions you see online, according to Plutus.

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What are the Plutus Difficulty levels?

Plutus has four different levels you can qualify for, depending on how much PLU tokens you stake or hold in your account. The four levels are Hero, Veteran, Legend, and GOAT. The harder the Plutus Difficulty level, the more benefits and perks you have. For example, wiith GOAT you can have up to 8% cashback and 8 perks. To qualify, you don’t need to “freeze” the assets for a certain amount of time, instead, you just need to hold them in your account.

How do you unlock a Plutus Reward Level?

If your total PLU balance meets the PLU requirements of a higher Reward Level, it is automatically unlocked. Your total PLU balance is calculated by taking the sum of your internal earned balance and any connected external wallet balances.

What happens after you unlock a Plutus Reward Level?

As soon as you reach a Reward Level, it will be grandfatheres and is no longer subject to future difficulty adjustments. This means you don’t need to worry about future increments or changes in the Plutus Reward program, you will keep that level as long as you hold the funds.

How can I upgrade my Plutus Rewards Level?

You must reach the PLU requirements in time to unlock a Reward Level. Until a Reward Level is unlocked, you will be subjected to future difficulty adjustments. See examples below:

Example 1 (Achieved): The PLU Requirement for Hero is 250 PLU in Q1. You earn 250 PLU before Q1. In Q2, the new PLU Requirement for Hero is 275 PLU. You already unlocked Hero, therefore, you do not need to earn more PLU to remain on Hero.

Example 2 (Failed): The PLU Requirement for Hero is 250 PLU by Q1. You did not earn 250 PLU by Q1. You will be subject to the difficulty adjustment and must now earn 275 PLU before Q2 to unlock Hero.

What happens if I accidentally disconnect or transfer PLU out of my personal wallet and fall below the grandfathered requirements?

The Plutus team will implement multiple safety measures to minimise the chances of this accidentally happening. However, as a non-custodial service, the users are responsible for handling their assets and remaining above the grandfathered requirements.

I live in the USA, will I be subject to the difficulty adjustments?

Yes. The same tokenomics and time-frames apply worldwide.

What happens if due to the supply shock and token value of PLU, the Reward Levels become unattainable and undesirable?

Extensive research has gone into the new Reward Level requirements and the team is confident in the difficulty adjustment calendar’s increments. Plutus will continue to review the data and, if necessary, improve the model by amending the requirements. Plutus reserves the right to amend the Reward Levels to ensure that they remain competitive and desirable worldwide.

What are the exact dates of the difficulty adjustments?

The difficulty adjustment calendar will start on the 1st June (Q2 2023), however, all future difficulty adjustments (i.e. Q3 onwards) will start on the first day of the quarter. The scheduled adjustments will end in 2025.

What if I cannot earn enough PLU in time to unlock a Reward Level?

Customers can upgrade their subscriptions to maximise the amount of PLU they can earn. PLU can also be obtained from other users who earn them via rewards and swap them on the PlutusDEX.

What is the logic behind the Plutus Difficulty adjustment increments?

The difficulty adjustment increments and their frequency were designed to ensure the Reward Levels are desirable throughout the growth stages of Plutus’ product lifecycle, as well as remaining competitive whilst ensuring the longevity of the Pluton Rewards Pool. The Reward Level increases are all proportional to one another (e.g. the requirements in the year 2025 are 4x the current requirements). This figure suits the projected user base and token supply in 2025.

Are Plutus Difficulty levels worth it?

It depends on how much you use the Plutus Card. Plutus is meant to replace your everyday bank. If you plan on using the Plutus Card as your main debit card for purchases, it can be worth staking PLU to qualify to a harder difficulty level, as you might get more back. Keep in mind that the amount of PLU to stake ranges from 250 PLU (€2000) all the way to 2000 (€16000), so it is not cheap.