ILV is the governance and revenue-share token for the Illuvium gaming ecosystem.
ILV is a low-cap asset that represents the protocol's native governance or utility token. This asset is exposed to the underlying risks of Illuvium, a protocol rated as Moderately Risky. The asset has a fixed supply.
ILV is highly correlated to the overall market.
Illuvium has no dependencies.
ILV is the governance and revenue-share token for the Illuvium ecosystem. The primary currency for in-game purchases will be ETH, so ILV is not needed to play the game. Instead, ILV serves as governance for the Illuvium DAO. Further, the protocol has stated that 100% of all revenue will be distributed to ILV stakers.
The max supply of ILV is capped at 10M tokens. The token distribution is as follows: 30% reserved for yield farming rewards, 15% for treasury, 15% for the team, 20% for seed investors, 10% for in-game rewards, and 10% for public sales. However, the total supply of 10M tokens is unlikely to ever be reached due to the mechanism to claim tokens earned through yield farming as sILV (synthetic ILV) tokens. When stakers decide to claim earned rewards, they are faced with a choice between either claiming as ILV (subject to a 1-year vesting period) or claiming as sILV (immediately usable in-game). sILV tokens that are spent in-game are burned and will never be reissued, which serves to reduce the total circulating supply of ILV.
ILV has intrinsic value as the revenue-share token for the Illuvium ecosystem. All future in-game revenue will be redistributed back to ILV stakers. To conduct revenue distribution, the Illuvium DAO will automatically purchase ILV from the Sushi ILV-ETH pool and distribute it to ILV stakers. This serves to put upward price pressure on the ILV token through open market buys. Further, as a certain segment of users decides to claim rewards as sILV, this will put deflationary pressure on ILV.