One reason tournaments are not an ideal option for distributing ILV Prize pool is that they often concentrate rewards to a small group of top-performing players, which can lead to an imbalance in the community. The same top players consistently win, which can create discouragement among the majority of the player base who feel they have little chance of ever earning a significant reward.
By using a ranking system, such as bronze to diamond, you can distribute the money more broadly across a larger player base. This incentivizes more players at all skill levels, giving them a sense of progression and achievement while allowing more people to benefit. It also fosters a healthier, more engaged community because players are motivated to improve their rank and feel more included in the rewards system, rather than feeling left out by an elite few. This broader distribution of rewards leads to more satisfied players, encourages participation, and prevents stagnation at the top tiers.
This can be a monthly distributions or weekly like how Gods unchained Rank system works. Players also do not feel obligated to Schedule their week around set Tournament dates.