Illuvium, the highly anticipated play-to-earn game, plans to sell 20,000 virtual plots on June 2, the venture said Thursday.
The sale is part of a push to sell 100,000 lots in the game. Land plots are used to generate in-game fuel and elements. The team writes that “once all land sells, it will never be minted again.”
Illuvium’s token, ILV, has a market capitalization of $293M and it’s the 10th largest P2E platform, according to CoinGecko.
While Illuvium’s sale has generally been well-received on social media, some onlookers have expressed skepticism.
ArdonLukas commented that “dumping $1000s into land of an unplayed game is [a red flag]. Anyone who did Kickstarter games knows to avoid this stuff. Best case[,] these games turn into a decade-long hype machine like Star Citizen.”
The plots will be distributed via a dutch auction on the Ethereum mainnet with a lengthy duration to prevent a land rush triggering a gas war. Land will then be minted on Immutable’s L2. Plots are divided into five tiers, with the more valuable parcels hosting rare landmarks that will significantly boost fuel output. Roughly 5% of all in-game revenues will also be distributed to landholders.
Kieran Warwick, the game’s Australian co-founder and reputed billionaire, told The Defiant that the project has already received inquiries signaling a sale totalling $10M for tier 5 land plots. Tier 5 plots boast a 900% fuel production boost and also come with a stadium that is used to host Illuvium’s esports tournaments.
Breakdown of Illuvium’s land tiers. Source: Illuvium.
Warwick is ambitious. He said he wants to best Dota, a strategy video game, when it comes to prize pool money in esports. “We already have sponsors lined up for the stadiums, and that’s straight revenue for [tier 5] landowners,” he said.
Roughly 90% of the e-sports industry’s revenues are estimated to be derived from sponsorships and advertising. While these typically take the form of branded jerseys worn by players and ad banners displayed at physical events, Illuvium plans to lure sponsors to advertise within its virtual world.
He noted that one of the largest gaming guilds in the industry will be among the tournament’s sponsors. Stadium owners can sell naming rights, secure sponsorship deals, and collect tournament fees.
Only two tier 5 plots will be able for purchase during the sale, suggesting bidding may be fierce. Tier 4 plots offer a 300% boost to the sum of in-game fuel its owners can produce compared to tier 1 plots, while tier 3 offers 100% increase in fuel output, and 2 offers a 33.33% increase.
The starting price for tier 1 plots of land will be 2 ETH, with tier 2 beginning at 6 ETH, tier 3 will be 20 ETH, and tier 4 will be 80 ETH. Prices will be reduced by 2.5% each minute as the sale progresses. Pricing for the tier 5 plots will be entirely determined through auction.
The project will also release a companion game for landowners dubbed Illuvium Zero where landowners can manage and develop their plots of land.