Is Illuvium’s ILV crypto token a good investment for 2023? ILV token review
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In this article, we will review the ILV token on the Illuvium platform, its tokenomics, and how you can make money from it.
The bear market has crypto investors worldwide getting cold feet and retreating from the industry completely. Experts are still on the fence on whether the market will recover and advise all investors to trade with caution.
It’s not all gloom and doom in this persistent crypto winter, as blockchain games are surprisingly not being affected by the ongoing bear market. Web3 games have successfully raised over $320 million in November alone!
Illuvium, a AAA blockchain game is one such game that is attracting not only casual gamers, but those seeking a play-to-earn option, as well as driven crypto enthusiasts.
If you haven’t read our Illuvium game review, what are you waiting for? The game is currently in private beta after the launch of a new world to explore, Overworld.
Illuvium, the world’s first IBG (Interoperable Blockchain Game) is an upcoming open-world exploration, NFT creature collector, and autobattler game built on the Ethereum blockchain.
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Set to be one of the few AAA blockchain games, Illuvium is a graphically-rich RPG Sci-Fi adventure, with seven dazzling alien landscapes to explore. Players discover the cataclysmic events that shattered Illuvium and help their crash-landed crew to flourish in this new world(s)!
The game was founded by the Warwick brothers, namely Kieran, Aaron and Grant Warwick. Interestingly, they happen to be the younger brothers of Kain Warwick, the founder of the Synthetix Protocol — a synthetic asset DeFi platform. Yes, ‘that’ Synthetix, the DeFi platform with over 1 billion in TVL. The Warwick brothers were naturally interested in crypto due to their older brother’s influence; however, the idea for Illuvium didn’t hit them until the latter half of 2020.
Read more about them in our Illuvium game review here.
Illuvium raised a total of $5 million dollars in the pre-seed and seed funding rounds to kickstart the platform from a range of investors. Framework Ventures, Delphi Digital, IOSG Ventures, and Moonwhale Ventures are among their key funders.
ILV token is Illuvium DAO’s native token — an ERC-20 token that can be used for governance.
ERC-20 is the Ethereum Request for Comment 20 (ERC-20) — the implemented standard for fungible tokens created using the Ethereum blockchain. ERC-20 guides the creation of new tokens on the Ethereum blockchain so that they are interchangeable with other tokens used within smart contracts.
What ERC-20 means in Illuvium is that holders of the ILV token (members of the Illuvinati Council) can vote on proposals involving the Web3 game. Currently, Illuvium has over 150 contributors aiding in the game’s development.
You can use ILV for direct player-to-player transactions on the Illuvium game, and for buying or selling Illuvials.
Illuvials are deadly beasts who rule the Illuvial alien world. Each Illuvial possesses hybrid synergies and unique abilities.
ILV token holders can also make a come-back by staking their tokens in the liquidity mining program. Staking rewards have a 12-month vesting period on the Illuvium ecosystem, or they can be claimed as sILV2 and utilized for in-game purchases right away.
Finally, all in-game revenue generated from in-game purchases and marketplace transactions is transferred in the form of ILV to stakers.
Players can acquire ILV tokens by purchasing them across both centralized and decentralized exchanges.
In early January, a flaw in Illuvium’s staking platform allowed bad characters to deposit an amount of ILV and then withdraw a greater amount of sILV in rewards. Normally, this wouldn’t have been permitted.
Following the incident, the team at Illuvium replaced sILV with sILV2, which has the same utility as the former.
sILV2 is a synthetic ILV token that is used exclusively within the in-game economy. The sILV2 is pegged to the value of ILV and can be used to pay for travel between the different worlds within the Illuvium game, and shard curing within the game. Moreover, sILV2 cannot be used for any other transactions, including the transactions on the IlluviDEX marketplace.
According to a report by the Illuvium team, ILV has a total maximum supply of 10 million, out of which a total of 6 million ILV were distributed initially. Another 4 million ILV will be slowly distributed over a period of three years through yield farming and in-game rewards.
From March 30th to April 2nd 2021, 1 million ILV (16.67% of initial supply and 10% of total supply) were distributed to the public through a Balancer Liquidity Bootstrapping Pool. The remaining tokens were distributed privately as follows:
Pre-seed investors — These investors received 500,000 ILV tokens (roughly 5% of the total supply) at the rate of $1 per token. Since they took on the highest risk and supported the project, they were given cheap prices.
Seed investors — These investors received 1.5 million ILV tokens (roughly 15% of the total supply) at the rate of $3 per token.
Team — The founding team was allocated 1.5 million ILV (roughly 15% of the total supply). These tokens were locked for a period of 12 months which was unlocked in March 2022.
Treasury — The project treasury also called the Illuvium Vault was allocated 1.5 million ILV (roughly 15% of the total supply).
According to Illuvium’s official website, the best DEX to purchase Illuvium would be through their official liquidity pool of the project, SushiSwap which is hosted on the platform.
ILV is also available to purchase on centralized exchanges like Binance, KuCoin and OKX.
The live Illuvium price today is $40.38 USD with a 24-hour trading volume of $3,998,504. ILV has a live market cap of $77,638,587.
It has a circulating supply of 1,922,757 ILV coins and a max. supply of 10,000,000 ILV coins.
The coin is down by more than 93% compared to its all-time high of $1,911 recorded in late November 2021. ILVs knock-off token, sILV, is trading at $0.014, down by 100% from its ATH of $616.
Illuvium DAO started distributing tokens in mid-2021, selling 20% of ILVs supply in seed rounds.
The DAO has also allocated 15% of ILV’s supply to developers, another 15% to the treasury, 10% to a launchpad for incoming investors, and the remaining 40% to yield farming and in-game rewards.
In this ongoing bear market, the ILV token has fallen in price more than many other tokens. Yet, most ILV holders are in for the long term. The ‘Illuvinaty’ believe in the future of the Illuvium game as well as its tokenomics and promise of revenue distribution.
During the Illuvium land sale back in June 2022, the Illuvium team demonstrated how their revenue distribution would work — where ILV investors got some USD back.
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