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ICCP-17

Amendment to IIP-45-R - Land Revenue Share Distribution Method

  • Date PublishedAug 1, 2024
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IMPLEMENTED

Sponsor

Kieran Warwick

Simple Summary

This amendment proposes changing the Fuel buy-back method outlined in IIP-45-R. Instead of the current buy-back mechanism, the amendment introduces a distribution method where ETH from purchases is distributed to landowners based on the amount of Fuel sold by each player in the same period. This process will occur monthly for the first month following release and then continue quarterly for non-fuel digital purchases.

Overview

IIP-45-R defines a system for landowners to receive a 5% share of the revenue from digital product sales within the Illuvium gaming ecosystem. This amendment revises the post-fuel production revenue distribution method.

Amendment Details

Current Method

  • All in-game purchases using currencies other than Fuel trigger a buy-back mechanism.
  • The equivalent value of these purchases is used to buy Fuel from the market at its current value.
  • The Fuel acquired through this buy-back system, minted by the DAO, is removed from circulation (burnt).

Proposed New Method

  • Instead of buying back Fuel, ETH from purchases is distributed directly to landowners.
  • Distribution is based on the amount of ETH generated from Fuel sales by each player in the previous period.
  • For example, if 10,000,000 total units of Fuel were sold in a period and a particular landowner sold 1,000,000 units in that period, that landowner would receive 10% (1,000,000 / 10,000,000) of 5% of the ETH sold through non-fuel sales in that period.

Usage of Fuel

  • Fuel to be used in-game, helping new players get started and preventing resale.
  • Fuel exceeding $25,000 per month requires council approval with documented justification.

Rationale

This amendment addresses the potential issue of high demand for Fuel exceeding the supply generated by players. In such cases, the buy-back method may result in purchasing Fuel from the DAO rather than from other players. Distributing ETH directly based on Fuel sales simplifies the process and ensures landowners are compensated fairly for their contributions.