What Is Illuvium (ILV)?

Illuvium (ILV) is a role-playing game (RPG) and collection game built on the Immutable X L2 network. Immutable X is a trading layer 2 protocol for EthereumNFTs that provides users with instant trade confirmation, zero gas fees, and huge scalability without compromising user ownership. Illuvium aims to create a fully decentralized game that can run autonomously and provide players with an AAA-rated (high rating given by the credit rating agencies) blockchain gaming experience. 

According to the Illuvium whitepaper, NFT projects and users are facing cost issues for performing transactions on the Ethereum network. It is because Ethereum can handle a limited number of transactions; hence, users bid up the gas prices on the network to settle their transactions quickly. With this, the trading volume for NFTs has decreased.

Immutable X alters this, allowing users to trade their NFTs without paying gas fees using what is known as a zero-knowledge (ZK) rollup. Immutable X also focuses on improving NFT liquidity, ensuring that buyers find what they are looking for and sellers find someone who wants their NFT. Apart from savings in gas fees, there are other benefits:

• Users can maintain the self-custody of their NFTs with the same level of security as mainchain Ethereum. 

• The transactions are instant, and moving back to mainchain Ethereum is trustless and verifiable. 

• There is no need for the user to own a unique L2 token to buy, sell, send, or receive NFTs. 

• Users get attractive game mechanics and design from the platform. 

• The Immutable X engine supports over 9000 transactions per second. ZK-rollups are smart contracts that implement Ethereum layer 2 scaling solutions for efficient transaction processing on the blockchain.

Illuvium has two tokens: ILV and sILV2. ILV is an ERC20 token issued to liquidity providers on the ILV decentralized exchange. The ILV token has three main functions on the platform:

1. Governance: ILV offers voting power in the protocol. Illuvium aims to collaborate with the community on game improvement proposals and elect the initial model of governance, the Illuvinati Council. The Illuvinati Council consists of nominees who are able to debate and distill technical changes on the platform and are voted on by the ILV token holders.

2. Liquidity Mining: The user gains more ILV (or sILV2). 

3. Vault Distributions: The platform shares the total revenue from the game and sales between ILV stakers. 

sILV2 is a synthetic ILV token and can be used as in-game currency for travel and shard curing. sILV2 is pegged to the value of ILV for in-game spending power. A peggedcryptocurrency is a digital medium of exchange whose value is tied to that of another medium of exchange, such as another currency or gold.

History of Illuvium (ILV)

Kieran Warwick and Aaron Warwick are the founders of Illuvium. Basil Gorin is the chief technical officer. Kieran Warwick is a serial entrepreneur who onboarded major Australian exchanges and started an OTC cryptocurrency exchange. Aaron Warwick is the chief game designer and story supervisor at Illuvium. He studied physics and computer engineering at Wollongong University, Australia. Basil Gorin has 15+ years of experience as a full-stack developer, with experience as a solution architect, tech designer, and software engineer. The token of the platform has a maximum total supply of 10,000,000 ILV. 

How Are New Illuvium (ILV) Earned?

ILV token holders earn rewards from the network by staking their tokens. 100% of in-game revenues are distributed back to stakers in the form of ILV. Illuvium aims to distribute a total of 3 million ILV tokens over a three-year period. ILV rewards are based on a 12-month lockup period. sILV2 can be earned by staking ILV on the platform. The stakers receive regular distributions on the platform and can vote on every aspect of tokenomics-related issues that feature in the game. Staking ILV allows the user to receive a share of vault distributions.