Tokenomics: An Integral component of Illuvium
Abandoned on a ruined planet inhabited by godlike creatures, surviving requires you to master the ways of this vast land in the face of your new normal. An in-depth understanding of this vast mysterious economy will aid you against the challenges that come your way when striving to be the ultimate hunter on this bewildering planet. The faster you familiarize yourself with the magical flows of this mystical ecosystem, the faster you will become the master of your own odyssey. This guide helps you explore the rich and complex economic structure that Illuvium’s ecosystem is built upon and will assist you to thrive in a growing world of survivors.
This high-quality role-playing game allows players to voyage on great journeys, uncovering mysterious secrets of the world of Illuvium while fighting against and capturing more than 100 Illuvials that vary in strength and abilities.
Basic gameplay overview — How do I play?
Players begin by customizing their character and selecting one’s sidekick and companion, a polymorphic drone. After the initial game setup, a world of exploration awaits, where players solve the enigma to the demise of this planet and fight against fellow survivors for the glory of capturing the rarest Illuvials. Players will be ranked based on their success at capturing Illuvials.
Pro tip: To capture Illuvials, players will require shards made out of the same energy that is harnessed by Illuvials. Having a set of shards before venturing into the world gives players a competitive advantage.
Illuvium’s free-to-play component allows users to gain a complete experience of the ecosystem without having to spend a dime. This helps new players learn the basics of the gameplay before marching ahead. Once players are confident in their knowledge of the game’s mechanics, the paid experience awaits, allowing players to delve into deeper adventures and begin owning some badass Illuvials, as NFTs.
Illuvials are not your ordinary creatures that inhabit a leftover planet, but beings of unimaginable power, serving as great allies. When you manage to capture a few of the same type, they can be fused together, which burns the existing NFTs and mints a single, more powerful Illuvial. Illuvials vary in both affinities and classes, allowing for strategic team-building to play a major role in combat.
Pro Tip: Synergies between Illuvials can be the difference between victory and defeat.
Amidst your glorious adventures, not only your Illuvials, but you as a character will fight against rivals for survival, utilizing futuristic weapons, while customizing your armor. Now, you might be asking yourself if “there’s anyone else who will support me?”
Players will find such support in Companion Drones. Each player’s Companion Drone is much more than just a piece of stylish equipment. Apart from storage and battle assistance, each drone can mine minerals from the planet’s surface to forge useful items. The landscape of this deserted planet is scattered with ore deposits, uncured shards, and rare gemstones. All the resources you discover can be stored for future use or traded in Illuvium’s marketplace.
Illuvidex will act as the in-game marketplace, where players are able to buy and sell precious resources and Illuvials that were gathered during their conquests.
The token that fuels this mysterious planet
Illuvium is powered by a one-token economic structure that utilizes the Illuvium token — ILV as its main ecosystem currency and a unique model to reward its bravest survivors. ILV token has a maximum supply of 10,000,000 tokens and the below image depicts token supply details.
$ILV has three main utilities:
Governance: Together with the community, be in charge of the future of Illuvium through game improvement proposals, as well as electing the initial model of governance, the Illuvinati Council. $ILV includes voting power in the protocol.
Liquidity Mining: Here, you will gain more ILV (or sILV2). Stakers of ILV are rewarded in more ILV, allowing stakers to receive a share of vault distributions.
Vault Distributions: When you stake ILV, you share in Illuvium’s success and passively earn additional ILV, funded through in-game purchases and fees. Vault distributions will only be available from sales once the game and Illuvidex are launched. 100% of revenue from the game and sales will be shared between ILV stakers. The revenue streams can be categorized into two broad categories as in-game purchases and Illuvidex fees.
Exchange Fees and Wagering Fees are generated from every sale on IlluviDEX at an initial rate of 5% of the total transaction value.
So, If I don’t spend $ILV for in-game activities, What do I spend?
Ethereum (ETH) is the primary currency used to reward survivors. Players can also spend $sILV2 on transactions that don’t involve another player. $sILV2 is a Synthetic ILV token that can also be used as in-game currency to purchase items. It can be earned by staking $ILV in the protocol. $sILV2 is pegged to the value of $ILV for in-game spending power. $sILV2 cannot be used in a player to player transactions, such as buying/selling Illuvials.
Over three years, the Vault emits three million $ILV via the staking in the platform to stakers. Users can claim these rewards as $ILV with a 12-month lockup period or $sILV2 that can be claimed and used immediately for gameplay and auctions such as the Land Sale and Illuvitars.
Below shows an image of the vault distribution process:
All in-game purchases and fees in ETH are routed to the Vault contract. The Vault contract purchases an equivalent value of $ILV from the $ILV/ETH Uniswap V3 pool on a regular and automatic basis, and $ILV is distributed to staked token holders in proportion to their stake.
In-game purchases within Illuvium are as below:
- Shard curing
- Imbues (Modification to various elements of the game such as weapons or drones)
- Wagering battles
- Illuvium revival (Medical fees)
- Obelisk travel
- Enhancements (Powerful stat boosts to the Illuvials
Illuvium prides itself on building a governance system that gives power back to the player where the future of Illuvium is decided by true supporters. There are two major components to this governance system:
- The Illuvinati Council will include nominees who are able to debate and bring forth technical changes upon Illuvium. The nominees are voted in by ILV token holders which enables the influence of community representation. (The above action is taken while being aware and taking precautions on not providing large ILV holders with a disproportionate voting weight in the outcome of the proposals)
- Illuvium proposals (ICCPs — Illuvium configuration change proposals and IIPs — Illuvium improvement proposals) are submitted to the IIP’s GitHub repository and will be posted on the Illuvium proposal space. Proposals must reach a supermajority agreement to be enacted.
This is just a basic overview of Illuvium DAO governance. For a closer look at Illuvium’s governance structure, please visit the following link: https://docs.illuvium.io/whitepaper/dao
We hope that this article provides readers with a basic understanding of the overall mechanics that solidifies Illuvium’s foundation. If you wish to learn more about Illuvium and to be notified of updates, please visit the links below:
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We hope this article enables you to grasp the basic structure of tokenomics within Illuvium and helps you move forward in your journey toward being an ultimate survivor.
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