Overview

To ensure the sustainability of a public and decentralized network, it is crucial to incentivize network participants with tokens, forming the foundation of ILLUVIA's token-based ecosystem known as Tokenomics.

Within ILLUVIA, Tokenomics revolves around a single-token economy. This means that the total number of tokens to be issued and their initial allocation are predetermined.

ILLUVIA is establishing an ecosystem centered around ILLUVIA tokens, the native tokens that serve as the bedrock of the ILLUVIA ecosystem, aiming to create a comprehensive ecosystem for ILLUVIA. Additionally, games and Dapps operating within the ecosystem have the flexibility to introduce their own tokens, with tokenomics tailored to suit the unique requirements of each game or Dapp.

Token Utilities

ILLUVIA's native token, the ILLUVIA token, serves as the fundamental token within the ILLUVIA ecosystem and is issued on the BNB chain to optimize ILLUVIA Tokenomics, with a total supply of 100 million tokens at its initial launch.

The ILLUVIA play various crucial roles within the ecosystem:

Gas Fees:

ILLUVIA tokens are used to cover gas fees incurred during transactions, including the rolling up of transactions from the Unity Layer to the Central Layer, the utilization of Bridge contracts, or when executing contracts on the Central Layer. Gas fees for transaction rollups are covered by Unity Builders, and ILLUVIA's design ensures that any potential increase in gas fees will be gradual. By fostering the growth of Unity Builder businesses in tandem with the ecosystem's expansion, the impact of rising gas fees is mitigated.

Unity Building Deposits:

To maintain a sound and secure ecosystem while preventing the proliferation of fraudulent Unity instances, individuals interested in creating a Unity are required to make a deposit of at least 1000 ILLUVIA tokens. This measure encourages long-term commitment and responsible Unity construction.

Decentralized Governance:

ILLUVIA token holders have the opportunity to engage in ILLUVIA's decision-making processes through decentralized governance. Proposals encompass a range of topics, from alterations in inflation rates through staking to determining the use of the treasury, voting on contract deployments within the Central Layer, and more.

Staking Rewards:

Staking ILLUVIA tokens provides the opportunity to earn staking rewards. Individuals who stake a minimum of 1000 ILLUVIA tokens through a validator contract can participate as validators within the network.

Payment:

In the ILLUVIA ecosystem, ILLUVIA tokens facilitate numerous micro transactions, both within and outside of games, including the primary distribution of digital content. ILLUVIA tokens are poised to become the primary currency across the entire ILLUVIA ecosystem, akin to the role of ETH tokens within the Ethereum ecosystem.

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