Having completed their first land sale with a full sell-out and no real issues to speak of, it’s safe to say that the Illuvium land sale was a success. Over a period of three days, the team sold 20,000 plots across four tiers. For a total income of $28 million dollars worth of ETH and sILV. By using a staggered Dutch auction format for the sale, players were able to purchase land plots at price points they were comfortable with. Now, we just wait for the opportunity to use these lands in game!
Illuvium sold their first land NFTs. And though the starting prices were not cheap (2 ETH for a tier 1 land), the Dutch auction price model seemed to work really well. It allowed the player base to decide the value of the land. Staggering the land release with a new batch every hour, making sure that everyone had a chance to make a purchase. Overall, a very calm, smooth and well-done process.
Over the course of the sale, the prices for Tier 1 lands seemed to find a comfortable low spot around 0.35 ETH. And even with the current downturn in the markets, Illuvium land plots currently have a floor of 0.43 ETH on the Immutable X marketplace. The Illuvium lands minted directly onto IMX, but the sale itself took place on the Ethereum network. Illuvium hopes that in the future, all purchases and transactions will run through the IMX layer 2 solution to avoid gas fees.
Over 4,000 of the ETH generated from the sale are allotted for Revenue Distributions to stakers of the ILV token. The vault will convert the ETH into ILV tokens, and distribute them proportionately to the ILV stakers. We don’t yet know the details of when or how these distributions will occur.
Illuvium Land Utility
The land from this sale is primarily intended for use in the upcoming, idle builder game, Illuvium: Zero. But the team does have plans to extend the land utility to crossover into the main Illuvium game. Landowners earn revenue by producing Fuel, used for all in-game transactions. The value of Fuel will not be stable. Instead, the Fuel cost for all game actions will remain the same. Leaving it up to players to determine the appropriate value.
There are three types of Elements and three types of Fuel resources. Landmarks affect the production of the associated Elements or Fuel. And while owning a plot focused on one type of resource production may be an advantage in some ways, owning different types of Sites can help with converting resources. Elements and Fuel are used for item production, building upgrades and research. Research opens opportunities to create blueprint NFTs.
The team wants to provide many strategic options and decisions for the players. From the placement of buildings (some work better together, others don’t) to resource management to working the markets to researching Illuvials. They seem to already have a decent foundation for developing several avenues of gameplay. And with potential ties into the larger Illuvial gaming universe, land plots could provide ongoing value into the future.