Illuvium's token allocation is transparent and fair, with 30% for team and treasury, 30% for investors, and 40% for ecosystem participants, ensuring no single group dominates the supply.
The graded vesting schedule for team tokens, with monthly releases over two years, aligns team incentives with long-term project success and reduces the risk of token dumping.
The allocation strategy is in line with industry standards, providing a balanced approach that supports decentralization and fairness.
The vesting schedule for team tokens is well-designed, promoting long-term commitment and price stability, which is crucial for the game's economic sustainability.
Staking rewards for ecosystem participants are subject to a 12-month vesting period, further encouraging long-term engagement and contribution to the game's growth.
The communication of allocation details and the vesting schedule is clear, providing transparency and trust among stakeholders.
The tokenomics model demonstrates a strategic alignment with long-term project goals, ensuring that the game's economy remains healthy and sustainable.
Introduction
Token allocation and vesting schedules are critical components of any Web3 game's economic model, influencing both short-term stakeholder incentives and long-term project sustainability.
Illuvium, a prominent Web3 game, has implemented a tokenomics model designed to align the interests of its team, investors, and players while promoting the game's long-term success.
[1a]This report will evaluate the extent to which Illuvium's token allocation and vesting schedule demonstrate fairness, transparency, and strategic alignment with the project's long-term goals.
An analysis of Illuvium's token distribution among team members, investors, and players.
[1a]
A review of Illuvium's vesting schedule and its implications for team commitment and token stability.
[2a]
An assessment of how Illuvium's tokenomics support the game's economic sustainability and stakeholder interests.
[1c]
Token Allocation Analysis
Illuvium's token distribution is divided among three main groups: team and treasury, investors, and ecosystem participants.
[1a]The team and treasury hold 30% of the total token supply, while investors and ecosystem participants hold 30% and 40%, respectively.
[3a]This allocation demonstrates a balanced approach, ensuring that no single group dominates the token supply, which promotes decentralization and fairness.
The team and treasury hold 30% of the total token supply, which is in line with industry standards and provides the team with sufficient resources to develop and maintain the game.
[3a]
Investors hold 30% of the token supply, reflecting their early support and risk-taking in the project.
[3a]
Ecosystem participants, including players and stakers, hold 40% of the token supply, incentivizing their active participation and contribution to the game's growth.
[1a]
Vesting Schedule Evaluation
Illuvium employs a graded vesting schedule for its team tokens, ensuring that the team remains committed to the project over the long term.
[2a]Team tokens began unlocking in March 2022, with 1/36 of the total allocation released monthly until March 2024.
[2a]This gradual release mechanism reduces the risk of token dumping and aligns the team's incentives with the project's long-term success.
The team's tokens are subject to a graded vesting schedule, with monthly releases over a two-year period, ensuring long-term commitment.
[2a]
This vesting schedule is in line with industry standards, reducing the risk of token dumping and promoting price stability.
The gradual release of team tokens ensures that the team remains incentivized to deliver on the project's goals over the long term.
Impact on Game Economy
Illuvium's tokenomics are designed to promote the sustainable development of the game ecosystem by incentivizing long-term participation.
[1c]The allocation of 40% of tokens to ecosystem participants, combined with staking rewards, encourages active engagement and contribution to the game's growth.
[1a]The vesting schedule for team tokens ensures that the team remains invested in the project's success, reducing the risk of short-term profit-taking.
The allocation of 40% of tokens to ecosystem participants, including staking rewards, incentivizes long-term participation and contribution to the game's growth.
[1a]
Staking rewards are subject to a 12-month vesting period if claimed in ILV, further encouraging long-term commitment from players.
[1i]
The team's graded vesting schedule reduces the risk of token dumping, promoting price stability and long-term project success.
Conclusion
Illuvium's token allocation and vesting schedule demonstrate a well-balanced and strategic approach that aligns the interests of all stakeholders with the project's long-term success.
The distribution of tokens among the team, investors, and players, combined with a graded vesting schedule for team tokens, ensures both fairness and long-term commitment.
[3a][2a]
The token allocation is balanced, with no single group dominating the supply, promoting decentralization and fairness.
[3a]
The graded vesting schedule for team tokens aligns the team's incentives with the project's long-term success, reducing the risk of token dumping.
[2a]
The allocation of 40% of tokens to ecosystem participants, combined with staking rewards, incentivizes long-term engagement and supports the game's economic sustainability.
[1a]
References
[1] BlockBeats.First Class Warehouse Research Report: Public beta is coming, in-depth analysis of the 3A blockchain game masterpiece Illuvium.BlockBeats. Available from: https://www.theblockbeats.info/en/news/52859
