You can find here the most common questions and answer regarding the Difficulty Adjustment.
- What are Reward Levels?
The Reward Levels determine the benefits you receive, such as higher reward rates (up to 8%) and more Perks (up to 8%). There are four Reward Levels that you can unlock.
|No Reward Level||
- How do I unlock a Reward Level?
To unlock a Reward Level, you need to have a certain amount of PLU (also known as Stack). The more PLU you have, the higher your Reward Level.
PLU Requirement: The term ‘PLU Requirement’ refers to the amount of PLU you must stack to unlock a specific Reward Level.
- What is Stacked PLU?
Stacked PLU is the total amount of PLU you currently hold, which contributes to unlocking a Reward Level. It includes PLU earned through spending with the card visible in the app, as well as PLU stored in any external wallets connected to the Plutus App.
Total Stacked PLU = Internal PLU + External PLU
- What is the Difficulty Adjustment?
The Difficulty Adjustment is a gradual increase of the PLU Requirements needed to unlock different Reward Levels. This update ensures the long-term sustainability of PLU Rewards. Over the next 2 years, the amount of PLU required per Reward Level will gradually increase.
- What does the 'Grandfathered' status mean?
If you qualify for the 'Grandfathered' status, you can maintain the benefits of your existing Reward Level without being subject to any increases in PLU requirements.
Grandfathered Requirement: The term 'Grandfathered Requirement' refers to the amount of PLU you stacked previously to unlock a Reward Level, as well as the amount of stacked PLU you must maintain to keep your current Reward Level.
If your stacking drops below the 'Grandfathered Requirements', your Reward Level will be reset, and you will be subject to the same PLU requirements as everyone else.
Let's say the PLU Requirement for the Hero Reward Level is 250 PLU. Before the Q3 Difficulty Adjustment, you earned and stacked 250 PLU. On July 1st, you become 'Grandfathered'. In Q3, the new PLU Requirement for the Hero Reward Level is increased to 325 PLU. Since you have already unlocked the Hero Reward Level, you do not need to earn more PLU to remain on the Hero level, thanks to your 'Grandfathered' status.
- How can I be 'Grandfathered'?
The next Difficulty Adjustment is July 1st, 2023. If you have a Reward Level on this date, it will automatically be grandfathered.
- Can I lose my 'Grandfathered' status?
Yes, you can lose your 'Grandfathered' status if you make changes to your Reward Level. This can happen in two ways:
Downgrading Reward Level: If you fall below the 'Grandfathered Requirements' for your current Reward Level, you will lose your 'Grandfathered' status. In other words, if your stacking drops below the amount required to maintain your current Reward Level, you will no longer be considered 'Grandfathered'.
Upgrading Reward Level: If you meet the current PLU requirements to upgrade to the next Reward Level, you will also lose your 'Grandfathered' status. This means that if you accumulate enough PLU to qualify for a higher Reward Level, your 'Grandfathered' status will be forfeited. Don’t worry, you will be grandfathered in again on your new higher Reward Level on the day of the next adjustment.
In both cases, by either downgrading or upgrading your Reward Level, you will no longer retain the 'Grandfathered' benefits associated with your previous Reward Level.
- What happens when I lose my 'Grandfathered' status?
When you lose your 'Grandfathered' status, there are certain implications for your Reward Level:
Recalculation of Reward Level: Your Reward Level will be recalculated based on the amount of PLU you have stacked and the current requirements for each Reward Level. This means that your new Reward Level will be determined based on your updated stacked PLU.
Changes in Benefits and Privileges: As a result of the recalculation, your benefits and privileges may change based on your updated Reward Level. You may experience adjustments in reward rates and perks associated with the new Reward Level.
In summary, losing your 'Grandfathered' status means that your Reward Level will be reevaluated based on your current stacked PLU, potentially leading to changes in the benefits and privileges you receive.
- When will the next Difficulty Adjustment happen?
The next Difficulty Adjustments are scheduled to occur on the following dates:
- July 1st, 2023
- October 1st, 2023
- January 1st, 2024
- July 1st, 2024
- January 1st, 2025
- Will I have another opportunity to become 'Grandfathered'?
Each Difficulty Adjustment presents a chance to become 'Grandfathered' if you fulfill the necessary stacking criteria before the adjustment takes place.
If you have accumulated enough PLU to reach a Reward Level before a particular Difficulty Adjustment, you will be granted 'Grandfathered' status based on the requirements in place at that time.
- Will I lose my 'Grandfathered' status when withdrawing PLU?
No, PLU withdrawals in ‘Pending’ status will still contribute to your total stacked PLU balance, ensuring that your grandfathered status remains intact.