Illuvium is a highly playable and visually stunning Gamefi product, making it one of the most anticipated games today! Apart from the game's graphics and gameplay, many players are concerned about an important topic - the game's economic model.
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The health of the economic model determines the game's input-output ratio and ultimately whether the game's playability can be sustained. Games with poor economic models can spiral into death upon launch, with the collapse of the token price causing many to leave. On the other hand, games with excellent economic models can attract more and more players to join the camp, generating a continuous stream of income through constant gameplay. So let's take a closer look at Illuvium's economic model - what it is, and why it is evaluated as continuously healthy, fair, and stable!
Illuvium has adopted a dual-token model to create its own economic system. The main token is called ILV, with a total supply of 10 million tokens. The ILV tokens were distributed starting from April 2021 and will be fully distributed within three years.
Angel investors have acquired 500,000 tokens, which will begin to unlock linearly after three years of staking.
The second round of investors received 1.5 million tokens, which will also begin to unlock linearly starting from June 30th, 2021.
The Illuvium management team holds 1.5 million tokens, with 1.4 million held by senior executives and 10,000 held by other team members. These tokens are required to be staked until June 30th, 2022 before they can be unlocked.
The Illuvium autonomous organization, ILVDAO, holds 1.5 million tokens. If the DAO wishes to use ILV, it must be approved by the board of directors. 15,000 of the 1.5 million tokens are reserved for market airdrop rewards.
One million tokens were sold through the IDO public sale.
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The tournament battles, quests, and daily challenges offer a total reward of 1 million tokens.
A total of 3 million tokens are allocated as staking rewards.
ILV is the token associated with Illuvium. It is an ERC20 token on the Ethereum blockchain and has three primary functions:
Governance: We can collectively shape the future of Illuvium through community-driven game proposals and the initial governance model of electing the Illuvium committee. ILV grants voting rights within the protocol.
Liquidity mining: Here, you can earn more ILV (or sILV). Staking ILV earns you ILV rewards, giving you a share of the treasury allocation.
The auxiliary token sILV2 is a synthetic ILV token used as an in-game voucher. It can be obtained by staking ILV in the protocol. Like ETH, sILV2 can be used as currency to purchase in-game items such as weapons, skins, and land. When sILV2 is claimed, ILV is destroyed, causing the price of ILV to rise. The price of sILV2 is equal to the value of ILV, and every time one sILV2 is claimed, one ILV is burned, resulting in price stability.
The Fuel token is an ERC20 token on the Ethereum blockchain with an infinite total supply. There are three types of Fuel tokens: Crypton, Hyperino, and Solon. They can be earned by mining through purchasing land NFTs and building mines in the Illuvium Zero game. The accumulated Fuel can be sold to the DAO for ETH via the Balancer pool. As the main in-game consumption token, players need to purchase Fuel from the DAO through Balancer. The more a player spends, the higher the demand for Fuel, and the higher the price, resulting in higher profits for the ZERO address.
Staking is an important means for players to earn rewards. The distribution ratio for staking mining is 80% for ILV/ETH pair staking and 20% for single ILV staking. The reward amount is adjusted every two weeks to 97% of the previous amount. In addition, 100% of game revenue is also distributed to ILV stakers. Mining rewards can accumulate and roll over within each distribution cycle to avoid high GAS fees. ILV rewards can be withdrawn weekly (with GAS cost). By locking the mined ILV for a long time, players can gain a certain weight multiplier, up to 2x (with a 12-month lock). The weight multiplier increases by 1/12 for every additional month of lock-up. Players can also choose to receive sILV2 tokens, which can be used in-game and allow holders to spend their rewards effectively within 12 months, similar to early interest withdrawal.
Illuvium has even grander plans for its token model, and the return on investment for ILV holders who stake their tokens will differ from 2021 to 2025. In 2021, as the game has not yet launched, ILV holders can only rely on the appreciation of the token's value and staking rewards as their returns. In 2022, with the game launched, they can also earn a 100% game distribution, in addition to the token's value and staking rewards. The revenue from the land auction will also be fully distributed to ILV holders who stake before June 2nd. In 2023, with the launch of the second game, the demand for ILV will continue to rise, and there will be a 100% game revenue distribution (G1+G2) on top of staking rewards. In 2024, the addition of G3 revenue will further boost the value of the token, and in 2025, G4 revenue will be added.
Do you understand Illuvium's token economic model from the above description? ILV has already been listed on centralized exchanges such as Binance, OKEx, and KuCoin, as well as decentralized exchanges such as Sushi and 1inch, with the single ILV token price once exceeding $1900. The enthusiasm and expectations for Illuvium are evident!
A robust economic model is the fundamental cornerstone for the long-term success of a game, and Illuvium has us eagerly anticipating an excellent, comprehensive work with great gameplay, playability, and sustainability!