#IIP-XX: Amendment to IIP-45-R - Land Revenue Share Distribution Method

1 messages · Page 1 of 1 (latest)

soft sedge
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Simple Summary:
This amendment proposes changing the Fuel buy-back method outlined in IIP-45-R. Instead of the current buy-back mechanism, the amendment introduces a distribution method where ETH from purchases is distributed to landowners based on the amount of Fuel sold by each player in the same period. This process will occur monthly for the first month following release and then continue quarterly for non-fuel digital purchases.

Overview:
IIP-45-R defines a system for landowners to receive a 5% share of the revenue from digital product sales within the Illuvium gaming ecosystem. This amendment revises the post-fuel production revenue distribution method.

Amendment Details:

Current Method:
All in-game purchases using currencies other than Fuel trigger a buy-back mechanism.
The equivalent value of these purchases is used to buy Fuel from the market at its current value.

The Fuel acquired through this buy-back system, minted by the DAO, is removed from circulation (burnt).

Proposed New Method:
Instead of buying back Fuel, ETH from purchases is distributed directly to landowners.

Distribution is based on the amount of ETH generated from Fuel sales by each player in the previous period.

For example, if 10,000,000 total units of Fuel were sold in a period and a particular landowner sold 1,000,000 units in that period, that landowner would receive 10% (1,000,000 / 10,000,000) of 5% of the ETH sold through non-fuel sales in that period.

Rationale:

This amendment addresses the potential issue of high demand for Fuel exceeding the supply generated by players. In such cases, the buy-back method may result in purchasing Fuel from the DAO rather than from other players. Distributing ETH directly based on Fuel sales simplifies the process and ensures landowners are compensated fairly for their contributions.

https://docs.google.com/document/d/1kItmO_UQj5B2hdAXrcfXzOGpPQQxgCKsbMnw3uTBjPA/edit

Google Docs
IIP-XX: Amendment to IIP-45-R - Land Revenue Share Distribution Method

IIP-XX: Amendment to IIP-45-R - Land Revenue Share Distribution Method Simple Summary: This amendment proposes changing the Fuel buy-back method outlined in IIP-45-R. Instead of the current buy-back mechanism, the amendment introduces a distribution method where ETH from purchases is distributed...

vapid matrix
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What's the reason for doing it monthly for the first month and not Start directly with quaterly?

ancient sinew
vapid matrix
gray storm
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same period or previous period?

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and we have weekly distribution from iip-39

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we dont have to replace the buyback mechanism, because there is already a mechanism for fuel purchass at or above the ceiling.
and when the fuel price is lower due to increase in supply from iz in 1-2 months and/or demand decrease, we can use the buyback system

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in summary, we already have a system to cater:

  • at or above ceiling = based on weekly fuel sales (IIP-39)
  • below ceiling = buyback (IIP-45)

it can be argued that the existing system is complicated, but the buyback system can act like a support to fuel price (buyback when fuel price below ceiling at a defined/random interval and size) which benefits stakers and landholders.
the removal of buyback system does not promote fair distribution of revenue which should be based on current play.
example: some landowners can frontrun beyond wave 3 sales distribution, by selling all of their fuel instead of upgrading or scanning, prior to beyond wave 3 sales, then resume their normal gameplay after the beyond wave 3 sales

gray storm
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to make this amendment, we gonna have to revise both IIPs

gray storm
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i agree that the current mechanism is too complicated.
scenario:

  1. We do beyond wave 3 sales in eth.
  2. Fuel price is below ceiling so we initiate buyback
  3. Just when we are about to buyback, the fuel price goes up and stay at ceiling.
  4. Ok lets do the weekly distribution as per IIP-39
  5. But when ur about to initiate it, fuel price goes down again, so u need to buyback
gray storm
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will upload this to github

bright relic
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This should be an ICCP not IIP for form's sake

gray storm