Governance Newsletter - April 2025

April 2025 featured a strong focus on gameplay incentives, governance reform, and community engagement. The Illuvium Community Council (ICC) continued driving discussions around improving fairness, refining daily rewards, and addressing perception issues in competitive play.

Progress was made on Governance V3.1, with key proposals introduced to revise council structure and implement a more dynamic compensation model. Feedback from landholders, creators, and competitive players helped shape ICC priorities throughout the month. Guest insights from Arena leadership also added valuable context to upcoming features and tournament strategy.

Illuvium Main Council (IMC) Review

The IMC was updated with a significant increase in daily active players. The Council also discussed a proposed cosmetics revamp, including the removal of blueprints, offering skins in the store, and providing landowners with a share of revenue. Labs continued its cost-efficiency efforts by cutting service costs by 70% and paying part of the team’s salaries in ILV tokens. Updates were provided on referral codes, TPI stats, Arena features, and fuel refunds. Mobile and localization development for the Arena will depend on player growth. New tournaments and monthly events are planned, and the IMC is also expecting a vertical slice for MMO-Lite.

Illuvium Community Council (ICC) Review

Key Discussions and Decisions

1. Total Power Index (TPI) Transparency

• Community confusion over TPI calculation and hidden stats prompted discussion.
• Proposed solutions included:
• • A unified TPI for Arena only.
  • Separate TPIs per game mode to reduce cross-product confusion.
• Goal: Ensure clarity and prevent FOMO while preserving competitive integrity.

2. Daily Play Incentives

• To boost retention, the ICC debated how to reward early matches without encouraging bots.
• Consensus: Reward the first 2 games per day, with potential tie-ins to rating and fuel systems to deter abuse.

3. Governance V3.1 & Compensation Reform

• A new proposal was introduced to:
• • Remove the guaranteed team seat on councils.
  • Link compensation to project revenue through a scalable model.
• The ICC voiced support for this dynamic approach, citing improved optics, sustainability, and alignment with DAO health.

4. Rewards, Matchmaking, and Fairness

• Ongoing concerns about Arena matchmaking and reward structure clarity were discussed.
• Some community members questioned if multiple accounts were affecting match quality and fairness.

5. Landholder & Cosmetic Expectations

• Landholders expressed frustration over shifting communications around cosmetic skins, particularly related to Illuvium Zero.
• ICC acknowledged the need for clearer, more consistent messaging going forward.

6. Creator Onboarding & Referral Strategy

• Early ideas were discussed around a streamlined creator referral system to support long-term growth.
• Goal: Avoid churn by providing low-friction onboarding and consistent engagement pathways.

7. Arena Development & Tournament Planning (w/ Rich)

• Guest speaker Rich shared Arena roadmap insights, including:
• • Planned gameplay improvements.
  • Future tournament structure aligned with game readiness.
• Streaming support is a long-term goal, with testing planned via internal team before public rollout.

8. Event Rewards & Spectator Considerations

• ICC agreed that event rewards should scale with quality and visibility.
• Without a spectator mode, large-scale events may underperform on impact.
• Sustainability of treasury-funded rewards was highlighted as a key consideration.

Proposals Recap

GCPP-4 Reduce Council Salary & Restore IMC structure PASSED

• This proposal aims to strengthen the DAO by reducing council salaries and restoring full decentralization to the Illuvium Main Council (IMC), ensuring that all voting power is derived from token stakers.

Major Governance Discussions

• Governance V3.1 structure revisions continue, with proposals under review by ICC and IMC.
• The ICC remains focused on balancing fairness, clarity, and economic sustainability in all player-facing systems.

Helpful Links

• Governance Hub: https://gov.illuvium.io/#/
• Council Chambers: Illuvium Discord Governance

Next Steps

• Coordinate with IMC to advance Governance V3.1 compensation proposal.
• Continue refining daily rewards and player retention models.
• Launch creator referral strategy planning sessions.
• Maintain alignment with Arena development and plan for future community streaming efforts.