Illuvials will be deflationary long term

I went into this article thinking I was going to write about blueprints. However, sometimes inspiration strikes and the article takes a different approach. This is one of those times. There is so much news and data constantly swirling around Illuvium. My plan here is to bring us back to the basics and talk about deflationary aspects of Illuvium. There’s a new aspect to Illuvials that up until now had been overlooked. Yes, catching Illuvials is an integral part of Illuvium. We know that 3 Illuvials are fused together to evolve and that creates scarcity amongst the early stages and slowly builds up supply of the later stages. Similar to Pokémon, rarity will be a massive part of this game and economy so these are very important points. Yet, one aspect rarely considered and unknown to most until recently is the way blueprints will be made. The skin portion of the blueprint will be created by burning Illuvials. A cosmetic item will be forged partially from actual Illuvials. Here is the formula that Aaron utilized in discord:

He went on to explain further here:

A second deflationary mechanism

The amount of Illuvials needed isn’t clear yet, but it will be in the coming weeks. The overarching takeaway is that there is now a second deflationary mechanism for Illuvials. This mechanism will seemingly go on forever as blueprints can mint an unlimited amount of armor, suits etc. This is a very important point. An Atlas that you catch in the Open World will at first be inflationary, but once the series 1 window closes that will become deflationary as people evolve Atlas into Axon AND burn Atlas as part of a cosmetic recipe. What will happen in ten years when Atlas are wildly scarce? Not financial advice, but if the Illuvium player base rises and Atlas supply falls then inevitably number will go up.

This all may be trivial in nature, but I do think it is worth a reminder. The Open World seems far away now, but it will be here before you know it. The folks lucky enough to be early will have a chance to stack first edition Illuvials like Pokémon cards in 1996. Moreover, we will see snipers on the secondary market looking for good deals while supply is inflationary. I see a digital gold rush coming to the Illuvium Open World fueled by Illuvium Zero. Maybe the real move will be to sell the picks and shovels of the gold rush at a premium (in this case shards and fuel)? One thing is certain, the fight for ETH will happen in more than just the arena. This is the future of gaming and we are all pioneers.

Thank You

As always, thank you for reading my article! Follow me on Twitter (@Rhamphy) to keep up with the latest Illuvium news, leaks and more.