Decentralized finance (DeFi) project Plutus announced that it will officially launch a brand-new loyalty reward protocol “PLUS More” on Base, the Layer 2 public chain under Coinbase, on May 20th. The aim is to reconstruct the user incentive system through tokenization mechanism and promote the innovative development of on-chain user loyalty programs.
Core functions: Three breakthroughs in tokenized rewards
The PLUS More protocol, based on the low gas fee and high scalability characteristics of the Base chain, has created a closed-loop ecosystem of “consumption – reward – circulation”. The core functions include:
Multi-scenario Reward Minting: After users complete their purchases at cooperative merchants on the Base chain (such as e-commerce platforms, catering applications, etc.), they can automatically receive the reward token PLU+ issued by the protocol. For example, for every dollar spent, one PLU+ can be minted, and the reward will be credited to the wallet in real time.
Cross-protocol Circulation and exchange: PLU+ tokens can be directly traded on decentralized exchanges on the Base chain (such as Uniswap V3), or exchanged for stablecoins like USDC. In addition, users can also stake PLU+ to Plutus’ liquidity pool to earn extra income.
Dynamic Tiered Incentives: Based on the cumulative number of PLU+ held by users, the system will automatically classify multiple membership levels such as Bronze, Silver, and Gold. Users with higher levels can enjoy a higher proportion of reward multiples (up to 3 times) and exclusive airdrop benefits.
Technical architecture and ecosystem collaboration
The PLUS More protocol adopts a modular smart contract design, and its core components include:
Reward Engine: Obtain consumption data through the Chainlink oracle to trigger the token minting logic;
Identity System: Integrate the OpenID protocol of the Base chain to achieve unified user identities across applications;
Governance Module: Users holding PLU+ tokens can participate in the voting of protocol parameters (such as reward ratio, whitelist of cooperative merchants, etc.).
The first batch of ecosystem partners to access PLUS More include the leading NFT market Magic Eden on the Base chain, the decentralized lending protocol Venus, and the Web3 branches of traditional brands such as the Starbucks NFT membership program. The Plutus team disclosed that they have reached cooperation intentions with over 50 merchants, covering multiple fields such as retail, tourism, and entertainment.
Industry significance: A paradigm upgrade from “points” to “tokens”
Traditional loyalty programs (such as air miles and credit card points) have pain points such as high redemption barriers and narrow circulation range. However, PLUS More has achieved three major innovations through tokenization design:
Enhanced Liquidity: Traditional points are usually only available for specific scenarios, while PLU+ tokens can be freely traded in the cryptocurrency market, giving users the option to “cash out”.
Incentive Transparency: Smart contracts automatically execute reward rules to eliminate the possibility of human tampering. Users can query the reward minting records in real time through Etherscan.
Ecological Synergy: The cross-protocol circulation feature breaks down “data silos”, and users’ consumption behaviors in different applications can accumulate unified loyalty benefits.
“PLUS More is not only a reward program, but also a bridge connecting Web2 users with the DeFi world.” Plutus co-founder stated that the choice of Base Chain as the initial platform was precisely due to its support for compliance and the huge potential user Base (the daily active addresses of Base Chain have exceeded 500,000). According to the roadmap, the agreement will launch the mobile wallet application in Q3 and support cross-chain to the Ethereum mainnet and Layer 2 networks such as Polygon.
Market Response and Risk Warning
After the news was released, the price of the Plutus platform token PLU rose by 12% within 24 hours, reflecting the market’s expectations for the new protocol. However, industry analysts caution that tokenized loyalty programs need to be vigilant about regulatory risks – institutions such as the US SEC have intensified their review of “utility tokens”, and the attribute definition of PLU+ may become a compliance focus. In addition, user privacy protection (such as uploading consumption data to the blockchain) and security vulnerabilities in smart contracts (which need to pass third-party audits) are also key challenges for the project’s implementation.
After the news was released, the price of the Plutus platform token PLU rose by 12% within 24 hours, reflecting the market’s expectations for the new protocol. However, industry analysts caution that tokenized loyalty programs need to be vigilant about regulatory risks – institutions such as the US SEC have intensified their review of “utility tokens”, and the attribute definition of PLU + may become a compliance focus. In addition, user privacy protection (such as uploading consumption data to the blockchain) and security vulnerabilities in smart contracts (which need to pass third-party audits) are also key challenges for the project’s implementation.
With the launch of PLUS More, Plutus attempts to prove that tokenization not only serves speculative demand but also creates real value for the real economy. If this exploration is successful, it may prompt more traditional industries to adopt blockchain technology to restructure their user incentive systems and open a new chapter in the “loyalty economy”.
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