Welcome back to another installment of the Illuvinati Times. In January, Illuvium council approved two proposals. A revised Gov V2 was released for review and the discord server now has governance forums.
You can find links and summaries to this month’s activities below. Please feel free to message me with any questions or concerns, my DMs are always open to the Illuvium community.
Artemis
Illuvium Governance on Discord
The Illuvium discord server has implemented government forums for efficient communication. Illuvinati council members can share updates, hold debates and receive feedback from the community. The forums are well-organized and accessible, enhancing the council’s communication.
The new governance category has a channel for news, IIP ICCP, governance, and council stage for town halls. Only ILV holders/stakers can comment, but anyone can read. Illuvium uses Collab Land bot to verify user assets for ILV holder voice representation.
Instructions for verification using Collab Land bot: https://scribehow.com/shared/CollabLand_Bot_Steps__rYKWsbirRsyHD_Ccy3TjNA
Runway
The Illuvinati council is finalizing preparations to release several IIPs regarding runway extension. They have many options, but one road has already been voted on. Council member Blickter updated IIP-28, Withdrawal of Sushiswap Liquidity, and posted it on the governance forums on January 4th. It gathered 46 community votes of approval, went to council vote on January 8th, and passed 5-0.
This proposal removes the entire Treasury ILV/ETH liquidity position from Sushiswap. The council will swap the ETH component for USDC to increase runway for development. The Illuvinati council will continue to prioritize IIPs for runway extension, which the community can expect.
ICCP – Defining Revenue Distribution
As the scope of Illuvium has continued to expand and evolve the implications of revenue distribution continues to change. On January 20th Illuvinati council member Deraji proposed an ICCP defining vault revenue and distribution for future DAO product directions. The proposal clarifies how future products will use vault revenue and accounts for variable and fixed costs. It has 36 votes of approval and will likely head to a vote soon, unless the author updates it.
Full Document: ICCP – Defining Vault Revenue and Distribution
Revenue Distribution IIP Discussion: https://discordapp.com/channels/760344898200666112/1066107679879213187/1066107679879213187
IIP-29 – Safety Pool
On January 26th Community Manager Rich announced the publication of two new proposals available for community review and feedback. IIP-29 Safety Pool aims to create a pool within the treasury, up to a maximum of $15M USDC. The DAO will use this amount to cover its costs.
Full Document: IIP 29 – Illuvitars Safety Pool
Revenue Distribution IIP Discussion: https://discordapp.com/channels/760344898200666112/1068378482352083006/1068378482352083006
ICCP 4 – Hold Funds from Illuvitar Sale
ICCP 4 – Hold Funds from the Illuvitar Sale would hold funds through the sale of the first batch of the Illuvitars in the Illuvitar Safety Pool (IIP-29). This is in an effort to minimize risk by providing an additional source of runway for game development. The intention is to hold revenue until the Illuvinati council has greater certainty that various upcoming revenue streams have the ability to sustain the DAO.
Full Document: ICCP 4 – Hold Funds from Illuvitars Sale
Revenue Distribution IIP Discussion: https://discordapp.com/channels/760344898200666112/1068378482352083006/1068378482352083006
Updates to Gov V2 Draft
After receiving ample feedback from the community the council revised Gov V2 and presented the updated document to the community on January 12th, 2023. You can find the updated document here, with blue highlighting for changes.
Gov V2.2 – Governance V2 Draft Proposal + Appendix (V0.2)
The main alterations to the document include:
- A definition section helping to define terms and acronyms used throughout the document.
- Clarification of sub-council composition and responsibilities.
- An extended section clarifying official meetings and communication plans.
- Length of an Epoch [still six months].
- Further explanation on the nomination process.
- Clarification on the voting process for $ILV holders.
- An extensive section on the specifics of a ‘Vote of no confidence”.
- Emergency proposal procedures.
Kieran mentioned during the January 27th Town Hall that the implementation time to execute Gov V2 would likely be 2-3 months once voted on. The council’s overall goal would be to see the execution of Gov V2 by the end of the current Epoch.
Tracking Proposals
In one of the council meetings earlier this month the council members discussed the need to create a more transparent process for tracking the status of proposals. While there is not a system in place they would like to see one that more clearly communicates the status of proposals, such as “passed but not executed” or “pending.”
Governance Newsletter
Council members discussed the possibility of creating an official weekly governance newsletter to keep the community informed of council activities. They discussed the need for a more tailored communication method for governance-related topics. One such method discussed was the possibility of creating a separate Medium account for governance related articles.
1/4/2023 Meeting Notes – lluvinati Council Meeting Agenda [Jan 3]
1/10/2023 Meeting Notes – Illuvinati Council Meeting Agenda [Jan 10]
Council Votes
Last month, the council voted on two proposals. Council member Blickter posted IIP-28 Withdrawal of Sushiswap Liquidity on the governance forums on January 4th and it gathered 46 community votes of approval. The council then voted on January 8th and passed it 5-0. Community member b0tch posted ICCP-2 Reduce Council Pay by 25% on the governance forums on December 22nd and it received 28 community votes of approval. The council voted on it on January 8th and also passed it 5-0. See below for summaries of council member rationale. For full accounts, visit the #council-chambers channel in the Illuvium discord.
Blickter approved both:
ICCP-2
“ It’s become apparent over previous epochs that a widening distrust was growing between the council and the community, for a variety of reasons, including council pay and communication. The current council has been making efforts to improve communication, but I believe a reduction in council pay is warranted as well.”… “It is extremely important to me that the community can place trust in the council to make decisions that are in the best interest of the DAO. The council are representatives of the community, and it’s logical to me that council members should be willing to make personal sacrifices, such as reducing their own pay, when times are tough.”
IIP-28
“The intent of this proposal is to increase stability in a turbulent market, and protect the health of the DAO from unforeseen risks. This is balanced against the potential for upside price movement in the Treasury’s SLP holdings. While it’s possible that a greater return could be realized by holding Treasury SLP tokens until the next bull market, that doesn’t help protect against risks in the present.”… “Swapping the ETH component of the Treasury SLP position for USDC will increase stability, allowing the team to continue developing games with confidence that they will have the support of the DAO. Runway stability is important for both retaining existing employees and pursuing new employees, and I regard those elements to be of critical importance. It also creates more space for marketing prior to the launch of the games, which will be an important element of the adoption of Illuvium’s titles.”
Deraji approved both:
ICCP-2
“The council serves as a critical function for the Illuvium DAO, and compensation of these roles is essential both to attract appropriate talent while also reinforcing expectation of council contributions. However, given the broader market conditions and current economic challenges prior to the successful launch of revenue bearing products, it is important that the current council also demonstrate our commitment to the longevity of the project. While the new council has made exceptional strides towards greater visibility and clear demonstration of our value, I vote to affirm this decrease in compensation as a show of good faith to the DAO and the community.”
IIP-28
“This is the first in a series of proposals that extending the runway (i.e., funds directly available to support development costs) providing confidence to sustain development prior to releasing successful revenue-bearing products. In this case, I affirm agreement to convert the ETH component of liquidity tokens held by the DAO to USDC. This is an appropriate conservative decision to help provide confidence in both the community and core contributors to navigate challenging economic times. While potentially foregoing upside of ETH appreciation, holding stablecoins mitigates further black swan events damaging the overall market. As a significant portion of the treasury remains held in $ILV and the past tendency for Ethereum tokens to move directional together suggests that a positive turn in the market would also likely result in an increase in economic value of the treasury.”
Scoriox approved both:
ICCP-2
“It is our job not only as a council but a community to ensure the protection and success of the DAO. In this case it makes a lot of sense to reduce council pay as a show of force particularly as a united front. Protecting the treasury is fundamental to the DAO’s success and this is a good way to begin that process.”… “In the future I’d like to see not only delayed compensation but some level of percentage based system in terms of the treasury or revenue generated that keep the two interconnected as long as this doesn’t create a disconnect from the community. “
IIP-28
“There is no immediate downside to removing the liquidity from the pool and if we discover that in 6-12 months we require it again and haven’t created a solution from the many that have been discussed in the past we will likely have the opportunity to provide liquidity once more. Removing this liquidity will however protect the DAO further incase there is any further turbulence in the market.”
Animositas approved both:
ICCP-2
“This is a simple, yet effective IIP to inject some additional liquidity into the project’s runway. The funding originally came from the treasury and it’s only a question of timing for when it should be returned. As has been discussed at length in the community, until revenue is steady post open beta launch of the games, any additional steps that can extend our runway should be considered. This is a clean way to do so that does not negatively impact ILV holders and allows us to reduce the need for other actions to mitigate long-term risks to project stability. “
IIP-28
“As a leader in an organization, you must always be willing to make personal sacrifices earlier and greater than those you ask of others in your care. I and the other current council members recognize this and have the best long-term interest of the project in mind. While the overall effect of the reduction is small to the project (less than 0.1% of treasury ILV on an annual basis), the signal and mindset is critical in the current state of development. “
Kieran approved both:
ICCP-2
“I approve this proposal, and I’m immensely pleased to see the council members sacrifice for the DAO, especially when I see the most contribution out of any Epoch in our history. “
IIP-28
“The initial seeding of the Sushi Pool was only temporary so withdrawing it now while we look at solutions to increase the DAOs runway makes sense. LPs will increase their percentage and earn more fees, making it a win for everyone.”
Council Town Hall
This month there were two town halls, each hosted on the Illuvium Discord. The council records and uploads town hall meetings to the Illuvium+ Youtube channel for the benefit of the community.
On January 12th the council spent much of the time giving an overview of the modifications made to Gov V2 and the rationale behind the changes. Starting at the 50 min mark the council took questions from the audience.
During the January 27th town hall, the council introduced two new proposals, IIP-28 and ICCP-4, and provided summaries and rationale for each. Kieran discussed the timeline for Gov V2 and estimated that it would take 2-3 months to implement after being voted in.
From the community there was discussion surrounding the possibility of adding incentives for the F2P version of IZ. Kieran stated that at this time there is no intention to add an earning element, however there has been discussion about increasing the overall number of plots available for purchase in IZ.
Finally it was confirmed that, while there is no GDD available to the public, there are clear intentions to create a competitive game, or TCG, around Illuvitars.
Illuvium+: https://www.youtube.com/@IlluviumClip/videos
1/12/2023 Town Hall – Illuvinati Town Hall Meeting (Governance V2)
1/27/2023 Town Hall – https://www.youtube.com/watch?v=OnILo2FAprE
Council Catch-Up
In an effort to help keep the community informed on council action and sentiment I will be interviewing a different council member each month. This month join Animositas and I as we reflect on what it’s like joining the council as a new member, what is currently the main focus of the council, and what his personal opinions are surrounding Gov V2 and the recently proposed IIP surrounding revenue distribution.
Interview with Animositas: https://youtu.be/BwlPs47g6fo
Tracking Ideas and Proposals
In an effort to help make the proposals listed in Illuviums discord #ideas channel more digestible I set out to create summaries of each posting. Below is a link to a google sheet where I’ve cataloged all ideas posted in the month of January. This sheet provides date posted, topic, title, original poster, link to the conversation in discord, along with a very brief abstract by the OP.
Also included is an information page about current Illuvium council members along with their socials. I highly suggest following each council member on their respected media to stay up to date with the latest in Illuvium Governance.
Illuvium Governance Tracker: ILV Governance Tracker
Final words
The Illuvinati Times will publish its next issue in the first week of March.Have a specific question, or looking to find more information on an aspect of Illuvium Governance? Feel free to shoot me a DM on:
Twitter: @artemisILV
Discord: Artemis | Illuvialmaster #0233 (Illuvium Discord Server)
Until next time!
Relevant Links
Meetings
1/4/2023 Meeting Notes – lluvinati Council Meeting Agenda [Jan 3]
1/10/2023 Meeting Notes – Illuvinati Council Meeting Agenda [Jan 10]
1/18/2023 Meeting Notes – Illuvinati Council Meeting Agenda [Jan 18]
Town Halls
1/12/2023 Town Hall – Illuvinati Town Hall Meeting (Governance V2)
1/27/2023 Town Hall – https://www.youtube.com/watch?v=OnILo2FAprE
Proposals Voted on
Proposals Awaiting Community Feedback
Gov V2.2 – Governance V2 Draft Proposal + Appendix (V0.2)
ICCP Rev Dis Definition: ICCP – Defining Vault Revenue and Distribution
ICCP-4: ICCP 4 – Hold Funds from Illuvitars Sale
IIP-29: IIP 29 – Illuvitars Safety Pool
Council Interview and Ideas Tracker
Interview with Animositas: https://youtu.be/BwlPs47g6fo
Illuvium Governance Tracker: ILV Governance Tracker
