#Pausing RevDis to Extend Treasury Runway to 36 months + Marketing

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junior granite
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Author: Nick & Grok
Status: Draft

Created: 28/03/25

Abstract

This proposal seeks to temporarily pause all revenue distributions within Illuvium (excluding distributions owed to Land Owners), redirecting these funds to the Treasury. The primary objective is to extend the project's financial runway to 36 months or more, ensuring long-term sustainability and continued development without the immediate need for external funding.

This measure will provide financial stability and enable the team to focus on core product delivery without funding concerns.

Simple Summary

This proposal recommends pausing revenue distributions and redirecting all generated revenue to the Treasury to ensure Illuvium maintains a 36-month operational runway. This temporary measure will safeguard the project against adverse market conditions, allowing for sustainable development while minimizing external financial dependencies.

Overview

Illuvium’s current revenue distribution mechanism allocates a portion of earnings to stakeholders. However, due to shifting market conditions and the necessity of securing long-term financial stability, this proposal suggests pausing revenue distributions temporarily and reallocating those funds to the Treasury to secure at minimum 36 months of runway at current burn-rate.

Key Considerations:

  • Current runway limitations: 20 something months, before marketing costs are considered.
  • Treasury allocation: All paused revenue distributions (excluding distributions owed to Land Holders) will be funneled directly into the Treasury for operational expenses and growth.
  • Governance oversight: The DAO will maintain transparency on fund utilization and reassess the pause at predetermined milestones.

This strategic decision prioritises the project’s long-term viability over short-term distributions, ensuring that Illuvium can continue building, marketing and delivering value without financial constraints.

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Rationale

The Illuvium DAO must act proactively to mitigate financial risk. While revenue distributions provide short-term returns to token holders, the project's sustainability must take precedence. Extending the runway to 36 months ensures that:

  • Core game development and ecosystem expansion remain uninterrupted.
  • Potentially allows more marketing spend when the time is right.
  • The DAO avoids reliance on external funding or dilutionary fundraising.

Pausing distributions now may alleviate more drastic measures later, allowing us to build a larger runway buffer & maintaining confidence in Illuvium’s l

kind goblet
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This would take away the last threads of hope for land and literally make Zero extinct. Capital raise instead.

junior granite
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When I say revenues, I meant after Land Owners were paid for Fuel sales.

In any case, just raising the idea for discussion sooner rather than later 😅

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May not be required at all, but I haven’t heard from Kieran directly on this so would prefer to raise it

kind goblet
junior granite
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Yeah after landowners receive their cut - agreed.

kind goblet
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Tbh I think the whole idea of revdis is terrible.

After being in this project for years now I can see that revdis is a carrot on a stick of free money for placid stakers that won't actually play the game but want to benefit off it the most.

junior granite
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20+ months is great, but I’d love the DAO to have 36+ and some buffer for marketing spend.

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I’d be in favour of permanently paying the treasury first, and only once the runway was filled does excess go to staking.

kind goblet
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I'm down with that

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Change the wording to reflect landowners and I'll upvote

junior granite
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Updated

edgy field
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Not sure it's worth the difference to potentially get ranting stakers out there right before marketing starts.
Incentives to buy token is basically dead then aswell which is not great if there should be a fund raise somewhere in that time period.
Isn't currently with the staked token amounts the Cut roughly Like:

  • 5% to Zero
  • 60% to treasury
  • 35% to other stakers
shadow bronze
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Is this another safety pool?

junior granite
shadow bronze
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Our current liabilities:

  • 1st fuel crate airdrop, ~$600K
  • 2nd fuel crate airdrop, TBD
  • Long outstanding distribution to landowners, 40 ETH
  • Fuel Refund provision, 70 ETH
  • Unknown revdis from IZ credit
  • sILV2
weak hull
shadow bronze