Illuvium (ILV) is a cryptocurrency token designed to support the AAA blockchain game ecosystem based on Ethereum. Here is a complete analysis of its tokenomics based on the latest information up to May 2025:
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### 1. Token Supply and Distribution
- Total Maximum Supply: 10 MILLION ILV, with the current supply around 9.6 million ILV (96% of total).
- Main Allocation:
- 30% for Yield Farming: Incentives for long-term stakers.
- 15% for Development Team: Locked for 12 months and released gradually over 1 year.
- 15% for Treasury: Project reserve funds.
- 10% for In-Game Rewards: Allocated for players completing missions or tournaments.
- 10% for Public Sale: Initial price of $90 per ILV in 2021.
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### 2. Token Utility
- Governance: ILV holders can decide the direction of game development through Illuvium DAO, such as changes in tokenomics or game features.
- Staking: Stakers receive rewards in the form of ILV or sILV2 (synthetic ILV for in-game transactions). Rewards come from 100% of game revenue (Fuel, NFTs, tournaments).
- Purchase of NFTs and Fuel: ILV is used to buy rare assets such as Illuvials (creature NFTs) or Fuel (the main resource for exploration and crafting).
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### 3. Economic Mechanism
- Deflation through Buyback: Game revenue (in ETH) is used to buy ILV from the market, which is then distributed to stakers. This mechanism creates buying pressure and reduces circulating supply.
- Dual Token System:
- ILV: The main token for staking and governance.
- sILV2: A synthetic version that is only valid in-game. If used, sILV2 is burned to maintain ILV scarcity.
- Vesting Period: Staking rewards are locked for 12 months to prevent massive selling.
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### 4. Performance and Recent Data
- Current Price: $14.37 (May 24, 2025), down 99.2% from all-time high $1,911.26 (2021).
- Market Capitalization: ~$135 million, with FDV (market value if all tokens are circulating) ~$138 million.
- Ownership Distribution: The top 10 wallets control 67.51% of the supply, with one wallet holding 37.31%.
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### 5. Risks and Challenges
- Dependence on Game Popularity: If the game fails to attract players, revenues from staking rewards will decline, triggering ILV sales.
- Economic Complexity: The dual-token mechanism and buyback may be difficult for casual players to understand.
- Price Volatility: ILV is susceptible to fluctuations in the crypto market, such as a 90.5% decline in the past year.
- Ownership Concentration: Whale dominance (large holders) potentially manipulates prices or governance voting.
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### Projections and Strategies 2025
- Focus on Illuvium: Overworld: The team plans to enhance gameplay quality and reduce microtransactions to attract millions of new players.
- Burn Rate and Finance: With a treasury reserve of $70 million in ILV, the project has the resources to survive even if the token price is low.
- Price Prediction: Analysts estimate ILV could reach $72 by the end of 2025 if it successfully captures market momentum.
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### Conclusion
Illuvium's tokenomics are designed for long-term balance through deflationary mechanisms, staking incentives, and integration with gameplay. However, its success heavily relies on mass adoption of the game and crypto market stability. ILV holders need to monitor game release developments and community participation in DAO.
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