ICCP-4

IMPLEMENTED

Summary

This proposal funds the Safety Pool (IIP-29) with revenue generated through the sale of the first batch of Illuvitars. Reserving these funds helps to mitigate the risk of uncertain macroeconomic conditions by providing an emergency source of runway to sustain DAO operations, if necessary.

Abstract

The community proposed using the revenue generated from the initial sale of Illuvitars to support the DAO. Instead of what is stated in IIP-13 (“The revenue generated from the sale will go into the Illuvium Vault to be distributed to stakers in the protocol.”) 100% of revenue from Illuvitars will be held in the Safety Pool (IIP-29) up until the maximum quantity denoted in USD outlined in IIP-29, or until authorized for release or use (by future ICCP) by the council. Once the Safety Pool is filled, any future Illuvitars revenue will be transferred to the Vault, to be treated as normal revenue and distributed to stakers (ICCP-3).

Rationale

Challenging macroeconomic conditions exist that may adversely impact the financial health of the DAO prior to achieving sustaining recurrent revenue streams. This proposal is an application of the risk management strategy established in IIP-29 that aims to create a greater financial buffer that can extend the development runway if necessary.

The Illuvium community has responded favorably (over 60 upvotes) to the potential of using revenue from the Illuvitars sale as development runway.

• https://discord.com/channels/760344898200666112/1040218513413001256/1040218513413001256

This proposal integrates that direction into a more flexible alternative.

The Council proposes to fund the Safety Pool (IIP-29) with revenue from the sale of Illuvitars until achieving the threshold set within IIP-29. The sale of Illuvitars will also likely involve sales through partners. Per the definition in ICCP-3, the DAO’s share of partnership revenue directly associated with Illuvitars will also be directed to the Safety Pool.

Discussion

Broad community support has been shared in Discord, as seen in the discussion linked here.

• https://discord.com/channels/760344898200666112/1042057080141516821