IIP-45-R

IMPLEMENTED

Simple Summary

IIP-20 outlines a system where landowners in Illuvium can convert in-game-generated Fuels into ETH, enabling them to receive an estimated 5% of the total revenue from in-game purchases. This proposal aims to refine and establish clear guidelines regarding how landowners can consistently earn this 5% revenue share from in-game transactions.

Overview

Landowners are entitled to a 5% share of the total revenue generated from digital product sales within the Illuvium gaming ecosystem. This is in line with the guidelines established by ICCP-3.

The revenue share applies only to digital products, including any virtual assets or services that can be acquired, owned, or used within the Illuvium gaming ecosystem.

The revenue share excludes sales of physical goods, services, fees generated on exchanges, and similar non-digital transactions.

Currency Considerations Purchases in Fuel directly contribute to the landowner's revenue share. Purchases in Other Currencies (excluding sILV2 or equivalent) are used to buy Fuel at market value.

Pre-Fuel Production

Distribution Threshold The distribution to landowners will be initiated once the cumulative funds for distribution surpass the value of 500,000 USD or when Fuel production starts, whichever occurs first.

Distribution Based on Land Tier The amount distributed to each landowner depends on their land's tier, which is determined by its base production capacity. The tiers are defined as follows:

• Tier 1 (T1): 1 unit
• Tier 2 (T2): 4 units
• Tier 3 (T3): 12 units
• Tier 4 (T4): 36 units
• Tier 5 (T5): 120 units

Distribution Method The funds will be airdropped directly to the wallets of landowners once the distribution is triggered.

Post-Fuel Production

Following the commencement of Fuel production, a Fuel buy-back system will be activated to manage transactions made with currencies other than Fuel.

Fuel Buy-Back Process All in-game purchases using currencies other than Fuel will trigger the buy-back mechanism. The equivalent value of these purchases will be used to buy Fuel from the market at its current value.

Handling of Minted Fuel The Fuel acquired through this buy-back system, minted by the DAO, will subsequently be removed from circulation (burnt).

Rationale

This proposal establishes a transparent revenue-sharing mechanism, ensuring landowners receive a 5% share from digital product sales. This promotes trust among landowners and reinforces the value of land ownership. It includes revenues from current and future Illuvium game titles.