IIP-52

REJECTED

Simple Summary

Revise the method of distributing the revenue share during the pre-fuel production phase from a tier-based system to one based on monthly fuel sales.

Provide compensation to landholders for their inability to develop their land plots prior to the open beta phase and for each subsequent week during the open beta period. Simultaneously, apply pressure to expedite the release of Illuvium: Zero by introducing a monthly multiplier.

Abstract

Rather than allocating the 5% revenue share as outlined in IIP-45-R, the revenue will be retained until landowners have been given a 4 to 6 week window to develop their land plots. Subsequently, the revenue distribution will be based on monthly fuel sales.

Landholders who are unable to generate fuel to support their OverWorld activities are eligible to receive weekly fuel crate airdrops, determined by the tier of their land holdings, until they can establish their land plots. To underscore the urgency of prioritizing Zero development, the frequency of airdrops will escalate on a monthly basis with a multiplier of 2.

Motivation

The Illuvium community has expressed apprehension regarding the fairness of the current distribution model for Fuel revenue during the Open Beta phase. Landholders, especially those actively engaged in gameplay, feel disadvantaged by the proposed flat distribution system, which needs to reflect their contribution or skill level. To address these concerns and uphold the original intention of rewarding active participation, this proposal seeks to modify the distribution mechanism to align with player engagement and skill.

Due to the adverse impact of this proposal on individuals who have invested in land plots to fund their Overworld and Arena activities, thereby hindering their anticipated profits, weekly fuel crates will be distributed. This measure serves a dual purpose: firstly, to provide compensation to affected parties, and secondly, to expedite the implementation of Zero going live on chain.

Overview Distribution method

• Delay in Fuel Revenue Distribution: Revenue generated from the initial sale of Fuel during the Illuvium Zero Open Beta will be temporarily pooled instead of immediately distributed to Landholders. An extra period of time, 4 to 6 weeks, will be added to simulate the intended Pre-Open Beta Illuvium Zero release window.
• ETH Distribution: Upon the commencement of Pre-Open Beta window, Landholders will receive a percentage of Open Beta Fuel sales in ETH as an extra payment on top of their Fuel sales.
• Depletion of Pool: The additional payment of ETH will be sourced from the pooled revenue generated during the Open Beta phase. Once the pool is depleted, Fuel sales distribution will revert to the standard model.

Example distribution method

Illuvium Zero release is 4 weeks after Open Beta release, followed by a 4 week Pre-Open Beta window.

Fuel Sales and Bonus Allocation

• Month 1: Fuel sales total USD 50 million. 5% of sales, $2.5 million, is allocated to payment pool 1.
• Month 2: Fuel sales amount to USD 40 million. Another 5% of sales, $2 million, is allocated to payment pool 2.
• Month 3 Fuel sales amount to 30 million. 5% of sales, $1.5 million.

Distribution of Bonus

• With the commencement of the Pre-Open Beta window, players who sell their fuel will receive an additional % of Month 1’s sales from the payment pool based off of their % of the total fuel sold.
• Example: If a player sells $15,000 worth of fuel in Month 3, they receive an additional $25,000 from payment pool 1 (1%).

Continuation

• This payment distribution continues each month until the funds in the payment pools are depleted.

Overview Airdrop

Given the lack of public information regarding the fuel consumption and value associated with a stage 1 run in the Overworld, I propose a weekly airdrop of x-amount of fuel, equivalent to n-amount of stage 1 runs. These airdrops will be distributed in a manner similar to Airdrop1 fuel crates, directly into the wallets holding the land at the time of distribution. Furthermore, to emphasize the priority of Zero development, these airdrops will escalate monthly with a multiplier of 2. For instance, if there is a delay of one month, the airdrop will double in value to accommodate 2 stage 1 runs, and so forth.

Example Airdrop

Month 1 total amount of T1 runs = 176'834

• Tier 1: Equivalent of 2 Stage 1 runs in OW
• Tier 2: Equivalent of 8 Stage 1 runs in OW
• Tier 3: Equivalent of 24 Stage 1 runs in OW
• Tier 4: Equivalent of 72 Stage 1 runs in OW

Month 2 total amount of T1 runs = 353'668

• Tier 1: Equivalent of 4 Stage 1 runs in OW
• Tier 2: Equivalent of 16 Stage 1 runs in OW
• Tier 3: Equivalent of 48 Stage 1 runs in OW
• Tier 4: Equivalent of 144 Stage 1 runs in OW

Rationale

Illuvium: Zero was intended to be live prior to Arena + Overworld to ramp up fuel production.

The possibility of Zero not launching prior or even at the same time as Arena and Overworld, has raised concerns about whether Zero is being given the priority it deserves or will receive in the future.

Introducing a weekly airdrop serves a dual purpose: compensating land investors for the extended delay of profits and urging the IlluviumMainCouncil to prioritize Zero development alongside Arena and Overworld.

The implementation of the multiplier for the airdrop is solely designed to ensure the launch of Illuvium: Zero as soon as possible.

Furthermore, distributing revenue based on tiers is deemed unfair to various groups, including megacity holders, skilled players, and active participants. A fairer approach entails distributing revenue based on weekly fuel sales, ensuring that these groups receive their rightful share, albeit at a later stage. With a system like this it is ensured the owed revenue is distributed based and actively participating in Illuvium: Zero as it would have been if Zero launches prior or at the same time as Overworld and Arena.