Upcoming NFT Game Illuvium Raised $72 Million Following Sale of Digital Land

NFT game Illuvium — set to launch on Windows and Mac later this year — raised $72 million following the sale of its digital Illuvium Land between June 2 and June 5. The upcoming game offered 20,000 plots of land as NFTs. Illuvium sold 19,969 plots to users while 29 plots were retained by the developers for future giveaways. The game plans to auction off the remaining two plots, which are considered Tier 5 (the most valuable in-game), through a standard auction format.

The world of Illuvium will feature a total of 100,000 NFT land plots, each of which will grant users access to a wide array of in-game benefits. Transaction fees throughout the sale averaged around $20 since the sale was done through a Dutch auction. Prices for each Illuvium Land varied depending on the tier. Tier 1 plots started at 2 ETH (approximately $3,700), Tier 2 plots at 6 ETH (approximately $11,100), Tier 3 plots at 20 ETH (approximately $37,000), and Tier 4 plots at 80 ETH (approximately $148,000).

The developers plan to redistribute 4,018 ETH (over $7.4 million) generated from the sale to ILV — the game’s token — stakeholders. On the other hand, they will also burn 239,388 ETH (around $2 million) of the game’s sILV2 token in an effort to reduce the total supply. “Inflation bad, deflation good,” explained the creators.

Illuvium co-founder Kieran Warwick affirms that their game design and “tokenomics” are unlike that of their competitors. The upcoming NFT game integrates collectibility and built-in rarity. For instance, users will only be able to level up one Illuvial — an in-game character — after they burn three others. This makes supply deflationary. Illuvials will also come in a set, which will only be available for a limited duration.

“Every six months, we produce a new set and you can never collect those Illuvials ever again,” Warwick elaborated. “So people can play for free as much as they want. Using the tier zero Illuvials and shards. But if they want to explore further with higher-level characters is when they start paying.” The NFT market has significantly slowed down in recent months, but its gaming industry, in particular, experienced an 82% drop-off in daily sales volume due to current conditions.

Sources: Decrypt, CoinTelegraph