ILV is not needed for gameplay in any way. Instead, it has three main functions:
Governance:
Together, we have the power to shape the future of Illuvium through our community collaboration on game improvement proposals and electing the initial model of governance, the Illuvinati Council.
Liquidity Mining:
Here, you will gain more ILV (or sILV). Additional ILV will increase your voting power in governance & increase your share of vault distributions.
Vault Distributions:
When you stake ILV, you share in Illuvium's success and earn a passive income of additional ILV, funded through in-game purchases and fees. Vault distributions will only be available from sales once the game and Illuvidex launch.