$72M Illuvium NFT Land Dutch auction saves buyers thousands on gas fees

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Open-world blockchain game Illu­vi­um man­aged to keep the aver­age trans­ac­tion fee for its non­fun­gi­ble token (NFT) Land at about $20 by hold­ing the Dutch auc­tion on the Illu­vi­um X Layer‑2 scal­ing solution.

The price to mint the NFTs was a frac­tion of the cost users paid to mint in Yuga Labs’ Oth­er­side sale. Illu­vi­um reports that users spent only $350,000 in fees in total to mint near­ly 20,000 plots of Land worth about $72 mil­lion, all with­out any report­ed net­work errors.

By con­trast, the Oth­er­side sale was plagued with issues. Users paid an aver­age of $6,000 in gas fees and some as high as $14,000. Ethereum became con­gest­ed as buy­ers attempt­ed to get their orders filled as quick­ly as possible.

The 19,969 plots of Land were sold main­ly to ILV hold­ers using a Dutch auc­tion for­mat, where the price per unit decreas­es over time based on how many are sold ahead of it. This allowed poten­tial buy­ers to wait for a more desir­able price range to place an order. 

Co-Founder of Illu­vi­um Kier­an War­wick said the sale had been designed as an anti­dote to Ethereum NFT sales that result in waste­ful bids that reward min­ers and cost the buyer.

The 4,018 ETH raised in the sale, val­ued at about $7.4 mil­lion, will be redis­trib­uted to hold­ers of Illuvium’s native ILV token. How­ev­er buy­ers most­ly used ILV tokens to make their pur­chas­es. The 239,388 sILV2, a staked ver­sion of ILV tokens, will be burned.

It was a fair­ly impres­sive effort con­sid­er­ing the NFT bear mar­ket which has suf­fered a major decline in vol­ume over the past 30 days. Sales vol­ume topped $137 mil­lion on May 6 and has fall­en 78% to $31 mil­lion as of June 5 accord­ing to NFT mar­ket track­er CryptoSlam.

Illu­vi­um is a decen­tral­ized fan­ta­sy RPG of epic scope based on mas­sive bat­tles of crea­tures called Illuvials.

Illu­vi­um NFT Land plots are a piv­otal aspect of the game’s ecosys­tem. Land gen­er­ates FUEL, which is used to cap­ture game char­ac­ters called Illu­vials or sold for Ether (ETH). There will also be util­i­ty for Land on the upcom­ing Illu­vi­um Zero game.

War­wick believes Illuvium’s game design and toke­nomics set it apart from oth­er gam­ing finance (Game­Fi) com­peti­tors. But he told Coin­tele­graph that Illu­vi­um is free to play for casu­al gamers who aren’t yet will­ing to stump up some cash. “It was­n’t an option to not have a free to play ver­sion,” he said.

The game com­bines col­lectibil­i­ty and built in rar­i­ty. War­wick said each in-game char­ac­ter NFT, called an Illu­vial, is unique and the sup­ply is defla­tion­ary. One method to deflate the sup­ply is that to lev­el up an Illu­vial requires burn­ing three others. 

Each Illu­vial also comes in a set that only remains avail­able for six months. War­wick said, “Every six months we pro­duce a new set and you can nev­er col­lect those Illu­vials ever again.” 

“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.”

Illu­vi­um will have its work cut out to gain trac­tion in the cur­rent con­di­tions with the NFT gam­ing indus­try see­ing a trou­bling 82% drop off in dai­ly sales vol­ume. Dai­ly vol­ume hit $70.3 mil­lion on Jan 1, 2022, but clocked in at just $13.7 mil­lion on June 6 accord­ing to decen­tral­ized app (Dapp) track­er DappRadar.

Relat­ed: Could Game­Fi and car­bon cur­ren­cies reverse blockchain’s cli­mate stigma?



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