ICCP-9

IMPLEMENTED

Summary

This ICCP intends to recalibrate the safety pool in light of the recent capital raise of 10 Million USD and the total sales generated from the completion of Illuvium: Beyond Wave 1. The ICCP proposes to lower the threshold from Fifteen Million ($15 Million) to Five Million ($5 Million) USD or its equivalent. With the addition that all current & future revenue shall be diverted to the Safety Pool, in accordance with ICCP-3, until the Safety Pool is filled or Illuvium enters Open Beta whichever comes first. All revenue exceeding the Safety Pool threshold or generated after Open Beta will be directly allocated to Revenue Distribution. By making these adjustments, the Illuvium DAO (“DAO”) aims to ensure adequate financial resources are readily available for the runway until the DAO’s revenue streams are profitable. Objective

The objective of this proposal is to take into consideration the impact of the $10 Million USD capital raise in relation to the initial threshold of $15 Million USD and including current & future revenue streams to complete the funding of the Safety Pool or until Illuvium enters Open Beta whichever occurs first. By lowering the threshold and including current & future revenue streams, we seek to create a more robust financial buffer that can be utilized for various purposes, such as mitigating risks, seizing opportunities, and investing in strategic growth initiatives.

Rationale

By reducing down the threshold to $5 Million, we are aligning the capital raised, which directly contributes to the treasury for runway purposes, and ensuring a sufficient financial buffer. Additionally, Admins have shared that adding an extra $5 million to our current runway will provide us with a total of 21 months of operational runway. However, they assured us that we can deliver with just 18 months of runway. This adjustment aims to reflect the consideration of the recent $10 million raise, aligns with the current risk appetite of the DAO, and maintains the primary objective of the safety pool. Additionally, the inclusion of all current & future revenues is necessary to fill the balance of the Safety Pool.

Sales from Illuvium: Beyond wave 1 were not sufficient to meet the intended funding level for the Safety Pool even with the lowered threshold. According to the most recent burn report, our Safety Pool currently holds 3.2 million USD. Considering the reduction of the safety pool threshold to 5 million USD, we now require less than 2 million USD to replenish the pool and resume Revenue Distribution. By including current & future revenue channels, we aim to bridge this gap and ensure that the safety pool is adequately filled. It is worth noting that once the threshold is filled or Illuvium enters Open Beta, the revenues from the identified channels will be allocated to Revenue Distribution.

This adjustment and inclusion of revenue streams to the Safety Pool align with our commitment to ensure the protocol has enough runway to not only finish the development of the Interoperable Blockchain Games but also ensure the DAO is well-prepared to face any unforeseen challenges and seize opportunities for growth if need be.

Test Cases

ICCP-6