The Treasury buy and burn half blueprints on Illuvidex

[oblique kiln]

Proposal to Address Blueprint Oversupply on IlluviDEX

The Illuvium DAO could strategically utilize the treasury to address the oversupply of blueprints listed on IlluviDEX. Currently, 1.56% of the total blueprints (87,113 as of now) are listed for sale on IlluviDEX, a significant number that impacts market dynamics. Among these, approximately 724 blueprints are priced under $1.

Key Proposal Details:
Targeting Low-Value Listings: By purchasing and burning the ~720 blueprints priced under $1, the DAO could remove approximately 53% of the currently listed blueprints. This would dramatically reduce the supply pressure and clean up the marketplace.
Cost Efficiency:
The estimated cost for this initiative would be minimal—less than $500 USD, assuming an average price of $0.70 per blueprint. This small expenditure could significantly improve market conditions.
Market Impact:
Removing over half of the listed blueprints would:
Create scarcity, increasing the perceived and actual value of remaining blueprints.
Mitigate clutter caused by redundant low-value listings, improving the overall marketplace experience for buyers and sellers.
**Implementation: **
To prevent artificial price inflation by blueprint owners:
The operation should be unannounced until completion.
Long-Term Benefits:
A healthier and more balanced blueprint market on IlluviDEX.
Enhanced demand for blueprints as scarcity drives value.
A potential positive impact on the ecosystem's perception and economic sustainability.
Thank you for considering this proposal to optimize the IlluviDEX marketplace and improve the blueprint ecosystem for the community.

[mossy fern]

This is a short term solution and this problem will continue to occur as more and more single-use blueprints are produced by Landowners

Would you suggest every week, bi-weekly or monthly this purchasing event should happen?

This proposal could also be extended into other aspects of the ecosystem (illuvials, emotes, skins, shards, etc.).

Buy backs by Illuvium for any assets is not the solution to high supply and low demand.

Also, if this is intended as a formal proposal to have upvotes and downvotes for the DAO to vote on, it should be posted here: #1126838877429182506

[oblique kiln]

Thank's for the link to make a formal proposal. You make good points and I agree with you. And the focus should be on increasing demand. I guess I was thinking that while demand was low for the game ecosystem in general temporary buybacks could play a role in making the different aspects of the ecosystem more favorable in general to everyone, but especially to newcomers. This way when they come (hopefully they will :)) it is a positive place. I think of it more as greasing the wheels, priming the pump, so to speak. I think the amounts necessary to do some "cleanup" buybacks is so small compared to the Treasury, that it could be seen as maintenance. But you do make good points. As a landowner just beginning to make blueprints, it is pretty discouraging to see only a few blueprints sold each day (if that) when the supply is so high.

[mossy fern]

I definitely understand and see where you're coming from.

Let's see what others think and i can always add this to Illuvium Community Council's meeting topics

The concern is the potential can of worms this might open for other aspects of the ecosystem

Illuvium labs has shared they want the game in a better state before the marketing push. This push should bring in a larger player base and that is the goal we are aiming for = more players, more demanding for NFTs, the supply VS. Demand should balance out

[frozen tusk]

This is a temporary bandaid and not a solution.

If the aim is to have less supply coming to market, i'm sure there must be better options available to help make that happen.