The original post is far from factual or impartial and we’re extremely disappointed to see misinformation and malicious targeting of individual projects spread on public governance forums. This is a matter we do not take lightly, so to avoid further confusion and misunderstanding we’ve prepared a response with all the facts below. For a truthful account of what has happened so far with plsARB, we recommend everyone reads the thread linked here.
“To illustrate, Plutus has locked up various tokens such as $DPX and $JONES. The precise method of generating revenue from this arrangement remains unclear. Plutus is granting users rewards in the form of $PLS tokens to incentivize deposits. Once a user has contributed to a Plutus token, the conversion is permanent. The sole exit route involves selling the wrapped token on a DEX. These wrapped tokens, on average, are trading at less than 60 cents on the dollar.”
We are extremely clear and upfront about how plsAssets function in our docs. plsARB functions exactly the same as any other plsAsset. The ratio between an asset and a plsAsset varies, predominantly according to the user’s collective demand for the yield of the underlying asset.
“When Arbitrum introduced its token, Plutus swiftly seized the opportunity. The network encountered difficulties handling the surge of users seeking to claim tokens simultaneously, prompting Plutus to establish its own external app page for users to claim through.”
We had an external app page setup for claiming prior to the airdrop that had been prepared for launch over the weeks leading up to the airdrop. It was not created as a reaction to the network surge. This page was created as a courtesy for Plutus users who were interested in converting to plsARB, as a reaction to the surge and people being unable to claim through Arbitrums native airdrop claim page our page was disseminated on Twitter.
“Additionally, Plutus introduced its wrapped version of $ARB, namely $plsARB. Details about plsARB remain scarce, including how its value will accrue and how the Plutus team will utilize user voting power in governance, among other aspects.”
We have clearly stated in our Discord that we are preparing a proposal that will introduce native value accrual to the ARB token and thus directly benefit plsARB and all ARB token holders. In addition, sequencer fee distribution has been long talked about as a potential value accrual mechanism for the ARB token, even being discussed before the token itself was released. We’ve also made it abundantly clear that the voting power of all assets will be transferred to bPLS holders. Until then we will vote in the best interest of Plutus. Once bPLS governance goes live users will have the ability to put forth a proposal that disbands or changes the mechanics around plsARB.
“In the course of the airdrop claiming process, Plutus enabled users to “stake” their ARB tokens for immediate conversion to plsARB. No warnings or disclaimers were provided about the irreversible nature of this process (although the site has been updated since, there are several screenshots captured during the original airdrop that prove it, I will allow the community to validate these claims too).”
Users had the option to only “Claim” their airdrop as well as the option to claim and convert to plsARB with ample disclaimers - with even more added after taking in initial feedback. These were two distinctly different functions as can be seen in the image below. Key to note that 7.5M ARB were added after the additional disclaimers were added.
“Users were enticed with appealing rewards for converting their tokens, without any indication that this would result in irreversible locking. This manoeuvre allowed Plutus to lock more than 10 million $ARB tokens. Plutus has not taken steps to introduce any form of community voting on Arbitrum proposals."
The fact that converting in to plsAssets is irreversible is detailed both in our docs and on the plsARB Convert UI, as seen in the images below.
“Consequently, Plutus retains full control over the allocation of the 12 million ARB tokens. It’s worth noting that Plutus has ‘used’ 45% of their DAO airdrop, predominantly to compensate the team.”
This is patently false - all the 10 million ARB that have been converted to plsARB are in a smart contract, and will be max-locked for ARB staking or another similar mechanism once it’s live. This mechanism is identical to any other plsAsset.
As for the DAO airdrop, Plutus has not used 45% of the DAO airdrop to compensate the team. Plutus has used 18% to compensate the team, with the majority of the DAO airdrop going to incentivize platform use. Most recently Plutus used 300K ARB to buy back plsARB from the official plsARB/ARB LP to distribute to lockers. This is all confirmable on-chain.
“Presently, Plutus started liquidity for plsARB, but the token is trading at a 65% discount compared to ARB. The team has decreased incentives for plsARB holders and has continually offered new assurances about making users whole. Users have incurred substantial losses while the Plutus team has amassed voting power. The team has yet to clarify its internal governance process. Users have no say in how Plutus votes with tokens that aren’t theres.”
The reward structure was clearly laid out prior to plsARB being introduced in launch materials. Plutus does not - and has never guaranteed - that plsAssets will trade at a 1:1 peg. This has been always readily available in our documentation.
We think that false claims such as the original post are extremely harmful, malicious and outright damaging. This is why we’ve prepared a thread here with all the facts along with evidence - something the original post has none of. To speak of legal measures against the Plutus team is an extreme stretch of imagination as no wrongdoing has been done. Witch hunts like this only act as a clear deterrent to all builders on Arbitrum.
We also want to highlight that plsARB is a flagship product for Plutus. We’ll be putting out a proposal to the DAO shortly to enable native value accrual to ARB, which will by proxy be beneficial towards not only plsARB, but every ARB holder. We’re committed to making our plsARB product as strong as it can be and proactively working towards that goal.
