The Use Cases of Plutos Network (PLUT) Token

PLUT is the official native utility token of Plutos Network used for synthetic issuance services, deposits of on-chain applications, and the payment of transaction fees.

Asides the above-mentioned uses of PLUT, there are other utilities which will be discussed in this article.

Use Cases of the PLUT Token

Plutos native token (PLUT) can be used in line with the following:

1. Decentralized Autonomous Organisation (DAO) Governance

Community members who holds PLUT are granted the power to vote on proposals presented in Plutos community.

They have the righy actively participate in the network’s governance and these include decision-making, voting on sub-contracts addition, and/or proposals for system upgrades.

They can independently start up community proposals aimed at initiating changes to the network. However, to initiate these changes, they have to obtain the consent from at least one-third of the network nodes.

2. Minting and Collaterals

By using Plutos smart contracts and placing computerized assets, holders of PLUT have the ability to mint mainstream and/or synthetic assets in forms of pUSD, pETH, pBTC, pDAI, etc., that will be locked in the system.

The assets that have been minted are considered debts with collateral placed in them and they are locked and stored in the ecosystem with a collateral ratio (C-ratio) allocated

C-ratio is calculated as the ratio of the user’s locked collateral to the value of the minted asset.

3. Rewards

PLUT will be given to every user who is involved in issuing and trading derivatives in Plutos ecosystem.

When a user is involved in providing liquidity on Plutos network through staking and trading, the user will be rewarded with a certain ratio of PLUT tokens according to the amount or value of liquidity.

4. Commission

The native token of Plutos network serves as a commission medium, which is used to pay for every few that incurred when transactions have been carried out in the system.

The fees include 0.03% of the amount gotten for the issuance of synthetic assets and derivatives such as swaps, perpetuals, options, bonds, etc. and about 0.3% of the value taken from all synthetic trade volume accrued on the network. These fees are sent and accumulate in the fees pool.

About Plutos Network

Plutos Network is a multi-chain DeFi synthetic and derivative issuance and trading platform that is built on BSC, Polkadot, and Solana Blockchains. It provides infinite liquidity on multi-chains through trading, mining, and staking.

Plutos Network gives its users the opportunity to participate actively in trading and liquidity with greater chances of profit and sustainability as a result of the low transaction costs and gas fees, higher transaction speed, interoperability, and scalability.

The network is also made up of several functions and components that makes it more scalable, interoperable, and profitable than other decentralized finance (DeFi) derivative markets.

For more information and updates about Plutos Network, visit the following channels:

Website: https://plutos.network

Twitter: https://twitter.com/PlutosNetwork

Telegram: https://t.me/plutosANN