GCCP-4

IMPLEMENTED

Simple Summary

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.

Overview

The Illuvium DAO is entering a pivotal phase as the broader crypto industry undergoes a period of transition, marked by evolving investor sentiment and increased focus on sustainable growth. In response, the Illuvium Labs team has initiated several cost-optimization measures to enhance long-term viability and operational efficiency.

This proposal consists of two complementary components: Reduction of Council Salaries And Restoration of Full Decentralization to the IMC

Together, these changes aim to reinforce financial preservation and governance integrity, ensuring that the DAO remains resilient, decentralized, and community-driven.

Reduction of Council Salaries

To align with Illuvium Labs' broader cost-efficiency initiatives and demonstrate unified commitment across DAO leadership, it is proposed that council salaries be adjusted as follows:

IMC Member Salary: From $3750 to $1250, per month in ILV

ICC Member Salary: From $1500 to $500, per month in ILV

ICC Head Salary: From $2250 to $750, per month in ILV

In addition to the base salary, each council member shall receive an additional variable compensation of 0.05% of the DAO Treasury’s monthly revenue, capped at the original (pre-reduction) salary level. For example, if the monthly revenue is $1,000,000, the DAO Treasury would receive approximately $400,000, resulting in an additional $200 for each council member. These adjusted figures are intended to ensure responsible stewardship of DAO funds while maintaining competitive compensation for elected contributors.

Restoration of Full Decentralization to the IMC

Under IIP-32 (Governance V2) and reaffirmed in IIP-42 (Governance V3), the IMC structure was altered from five elected members to four elected members plus one Team Admin from Illuvium Labs with full voting power. This effectively reduced community control by 20%, as the fifth member was not elected by token stakers. This proposal seeks to fully restore decentralization by returning all voting power in the IMC to the community through token-based elections.

Proposed IMC Structure

The IMC shall consist of five (5) members, all elected by token stakers (vILV).

Only one (1) of the five elected members may be from Illuvium Labs.

If multiple Illuvium Labs team members are nominated, only the one with the highest number of votes will be eligible.

The elected Illuvium Labs representative, if any, shall not receive a council salary.

Definition of Illuvium Labs

Includes but is not limited to Illuvium Labs Inc, Illuvium Labs FZCO, Illuvium Labs Pty Ltd, and their affiliates.

Risks and Mitigations

Reduced Nominee Quality

Lower salaries may discourage high-quality candidates. To address this, a performance-aligned compensation model is introduced and the salaries should be reviewed periodically to ensure they remain competitive.

Reduced Lab Involvement

If no Illuvium Labs representative is elected, input from the team may diminish. To mitigate this, a non-voting Illuvium Labs representative will participate in IMC meetings to provide insights and maintain alignment.

Implementation

This proposal will take effect starting from Epoch 11.

Rationale

Reducing council salaries reflects the DAO’s commitment to fiscal responsibility, ensuring the Treasury maintains a healthy reserve of ILV tokens. At the same time, restoring full decentralization to the IMC strengthens governance legitimacy by reaffirming that all voting power comes from the community via staked tokens. By aligning compensation with current market conditions and reinforcing democratic governance, this proposal upholds the values of sustainability, transparency, and decentralization.