GameFi is one of the many sectors in the crypto market that has implemented a DAO on its project to govern its entire ecosystem. 

DAOs or Decentralised Autonomous Organisations are an essential part of a crypto project as they increase the decentralisation aspect of the project. 

Earlier in the market, DAOs stood as their project with innovations created based on it. However, things have changed as most projects now always implement a DAO on their ecosystem to increase trust in the community. 

One of them is Illuvium, which is a GameFi project that has existed since 2021 in the Ethereum Blockchain. 

What is Illuvium? 

Illuvium is a captivating open-world RPG adventure set on the Ethereum blockchain. Imagine a world shattered into stunning landscapes teeming with fantastical creatures known as Illuvials. 

Source: Illuvium

As a hunter, you’ll traverse this fragmented environment, capturing these elusive beasts to add them to your collection. But Illuvials are far from mere trophies. Each is a unique NFT (Non-Fungible Token), giving them value and strategic importance.

The game is similar to Pokemon, where the objective is to collect monsters, travel the digital world, and battle other players. 

This means that there is a probability that when the game is launched publicly, the adoption rate will increase faster than other games in the crypto space, as it has a more familiar gameplay with great graphics. 

The game boasts AAA-quality visuals and a deep focus on monster collection and combat. Illuvihavee in various classes and affinities, allowing for strategic team building and diverse battle tactics. 

The play-to-earn model incentivizes players by rewarding them with the cryptocurrency ILV for completing quests and winning battles. Furthermore, Illuvium integrates with Immutable X, a solution that offers gas-free minting and sub-second transaction speeds, making the gameplay experience smoother and more affordable.

Unveiling the Illuvium DAO

The Illuvium DAO serves as the backbone of this immersive gaming experience. DAO stands for Decentralized Autonomous Organization, a community-driven entity that operates without a central authority. 

Source: Illuvium

In the context of Illuvium, the DAO empowers token holders (those who own ILV) to actively shape the game’s future.

The infrastructure of the Illuvium DAO relies on smart contracts, self-executing code stored on the blockchain. 

These contracts dictate the DAO’s rules and ensure fair voting processes. ILV holders can submit proposals for various aspects of the game, such as new features, in-game item balancing, and even the distribution of in-game rewards. The community then votes on these proposals, with the outcome directly impacting the development of Illuvium.

This DAO structure fosters a collaborative environment where players have a say in the game’s evolution. 

It also promotes transparency, as all proposals and votes are publicly viewable on the blockchain. By combining stunning visuals, engaging gameplay, and a community-driven approach, Illuvium is poised to redefine the RPG experience for the blockchain era.

In this DAO, holders of the ILV Token can do three things, which are:

• Submit proposals to change or update any part of the Illuvium Infrastructure. 
• Vote to decide the members of the Illuvinati Council. 
• Vote on existing proposals that need participation from all holders. 

Illivuim implements a similar mechanism to all DAOs, however, it takes a more centralised approach to it. 

The centralisation is done through the Illuvinati Council which is a representation of all holders that are voted by the holders of ILV. 

It acts as a core member of the DAO which can make decisions for the DAO, where the vote itself has been trusted by the holders of ILV. 

The Illuvium DAO and its Council

The Illuvium DAO serves as the cornerstone of this community-driven gaming experience. Unlike traditional organizations with hierarchical leadership, the Illuvium DAO fosters a decentralized approach. 

Source: Illuvium

The driving force behind the DAO’s decisions comes from the Illuvinati Main Council (IMC), a group of elected representatives chosen by the very players who hold $ILV tokens.

This council structure empowers token holders to actively participate in the game’s development. Imagine it as a collective brain guiding the future of Illuvium. 

Through a system of proposals and community voting, the IMC considers suggestions for new features, in-game balance adjustments, and even the distribution of rewards within the Illuvium world. 

By leveraging this decentralized approach, the Illuvium DAO ensures that the game evolves based on the will of the community, fostering a sense of ownership and shared purpose among players.

In essence, the Illuvium DAO breaks away from traditional leadership models, placing the power directly in the hands of those who are most passionate about the game’s success: its players.

Token Economics of Illuvium 

The ILV Token governs the whole Illuvium Ecosystem from its DAO to its products. The token itself was launched in March 2021, and it is currently trading near its launch price. 

Source: Coingecko

The token allocation seems fair as the public controls 55% of the overall supply and the “insiders” which are the team and the initial investors, receive around 45% of the overall supply. 

With a vesting period of 4 years until 2025, considering that we are currently in 2024, then there is a probability that most of the tokens are already circulating in the market and the early investors have capitalized on its gain. 

This means, that if the predicted bull market of 2025 pushed ILV up, then the chance of it going down because of “insiders” is nearly impossible. 

However, considering that the product has not been launched publicly yet, ILV might still experience volatility here and there, since it still has no real fundamental ground to stand on. 

Conclusion 

Illuvium can be one of the most interesting GameFi projects in the crypto space as its gameplay represents a similarity with common games such as Pokemon. 

The DAO itself also implements an innovative mechanism through the Illuvinati Council, which means that it eases the governance process of the project. 

However, it all depends on the product, because if the game has not been launched publicly yet, then there is a possibility that the project’s fame might fade.