ILV is the native token of Illuvium, a blockchain-based RPG (role-playing game) that combines exploration, battles, and collection mechanics. Illuvium operates on the Ethereum blockchain, and its primary aim is to leverage the concept of NFTs (non-fungible tokens) in a play-to-earn environment. Below is an overview of how ILV works within the broader Illuvium ecosystem:
ILV Governance
ILV is used as the governance token of the Illuvium DAO (Decentralized Autonomous Organization). Holders of ILV get voting rights on critical decisions about the game's development, updates, and ecosystem features. This decentralized approach means that power is distributed among token holders rather than being controlled by a central authority. Proposals are submitted, and ILV holders can vote based on their stake.
Staking ILV
Staking is an integral part of the ILV ecosystem. Holders can stake their ILV tokens in exchange for rewards. ILV offers two types of staking pools:
1. Core Pool. Users stake either ILV tokens or a combination of ILV and ETH (Ethereum).
2. Flash Pool. This pool allows players to stake different tokens from partner protocols.
By staking ILV, users can earn additional ILV through liquidity mining and receive various rewards within the ecosystem. These rewards can be claimed instantly or vest over time—typically a 12-month period.
Illuvials and NFTs
Illuvials are creature-like characters in the game that players hunt, capture, and trade as NFTs. These creatures hold varying levels of rarity and value within the game and the external marketplace. Owning rare Illuvials can increase a player's strength in battles against other players or AI-controlled creatures.
ILV pathways within the game also include purchasing and selling Illuvials on secondary marketplaces. Users can buy, sell, or trade Illuvials backed by Ethereum-standard NFTs (ERC-721 tokens). This creates a robust in-game economy that is directly linked to blockchain.
In-Game Economy
One of the distinguishing features of Illuvium is its hybrid economy model, which offers a balance between free-to-play and pay-to-play options. ILV operates as the primary asset to interact within the ecosystem. Players can use ILV to unlock weapons, armors, and more resources to progress in the game. Transaction fees and marketplace fees also tie into the demand for ILV.
These functionalities of ILV work coherently to provide governance, rewards, staking, and an NFT economy within a decentralized framework.
