#Illuvi part 3 of 4. Land price fall and proposed changes.

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idle seal
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Posted on behalf of @silver tundra

About current Illuvium zero land situation:

Land prices has fallen from 100% at the initial land sale to about 4.5% of initial price. Value of fuel crates given equal to aprox. 1.7% value of the initial price, making it a fall from 100% to 6.2%. After months of profit for fuel burning and or blueprint minting, the fall would still be from 100% to less than 8% of initial investment. It means land investors who bought at initial land sale have not profited at all despite playing the game for months and also lost about 92% of the money they spent. Each case has different numbers, % are approximate but shows the situation of those who bought at the initial land sale. The main reason of the fall probably is the limited player base and fuel sales at the current stage, but there is more reasons that explains the fall.

What was promised vs what it is:

Promised:
Paid land players will be the only ones to produce fuel and the company will be able to sell an additional 19 times that amount of fuel. Since fuel is necessary to play illuvium games it's likely to be a scarce resource and when the amount of players rise, the demand for it will be even higher. Being a land owner is the best way to secure access to fuel.

Reality:
IZ players don't decide fuel production, instead fuel can always be bought at a fixed price at the website. This change was necessary for the good of Overworld and the whole economy system but land owners ended very short from initial expectations after paying for them.

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Promised:
There will be a bottom price for fuel. Players can always sell fuel at a minimum fixed price.

Reality:
There is no bottom price. Having a bottom price means that the company must always keep money to be ready to trade all in-game fuel for money. I prefer not having a bottom price that having one so small that is never going to be used. At least we're honest about what we have and we don't have. But initially fuel was supposed to have a decent bottom price and it ended having none.

Promised:
5% of all digital profits of current and future games will go to land owners (merchandise sales not included). 95% will go to DAO.

Reality:
Instead of getting 5% of all digital profits land owners get 5% of only fuel sales. This does not include fees from all trades done at the website in eth or any other coin.
The company reserves the right to pay rewards in fuel and already did it in the past. If something costs 5000 fuel like arena battlepass and gives way less fuel as part of the rewards then it's fine, but if fuel rewards are given for free then it lowers the need to purchase fuel at the website, reducing the profit that has to be split between land owners who burnt fuel.

It's true land owners are already being paid while DAO is not being paid yet. But we have to consider that this first year the player base is quite low and the profit is also quite low. So basically for some pennies earned in this first 1 or 2 years, land revenue in future years when player base will be bigger and profit will be bigger has been cut.
Land owners don't have to wait many months to get their share like DAO does, instead they get it weekly with is more fun. But they get a lower % than the 5% of all digital profits initially promised.

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Promised:
Land owners will be able to profit by crafting skins and selling them.

Reality:
While this is true in theory, the reality is that both the price and the volume of those skins are too low and therefore to profit instead of crafting skins is usually better to just burn the fuel.

Now that I finished to mention the changes, I can only say that while it's true land price depends on fuel sales profit, it's also true that land price is so low because game changes seem to go always against land. I don't know if this direction has been chosen on purpose or not. Maybe the problem is that the company expects no revenue from land that has already been sold and therefore the less profit given to them the better. Regardless of what's the case it's probably in the interest of the company to add new features to IZ that allow players to spend unified fuel, worth real money, in those features.
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One way to have revenue from I.Zero could be the following:
Land plots could have a factory building where to build war units. Humanoid and non humanoid ground drones (Star Wars style) and flying drones (Illuvium style). Different kind of drones will have different properties and purpose, and will require minerals and different amount of unified fuel to be built. Once every 3 months there will be a war in a strategy board where the units of different players will kill each other to get the rewards. Alliances among players and tactics will matter. The rewards will be titles. Different titles allow players to be able to own different buildings inside one of the different cities in Overworld. Tabern, marketplace, storage deposit, city defenses, mayor of the city, etc. Mayor sets 2, 3 or 4% city interest. This total city interest is split but not equally between the different buildings of the city. When an illuvial is killed by any player in the territory of that city and gives loot, this % of interest will go to the city and monthly split between the owners of the buildings of that city. Players from free land plots can use 3 kind of fuels inside their plot to max buildings, but since war units require unified fuel they need to buy fuel at website if they want to produce war units. It's a way to have a reason to play free land plots. Paid land players produce unified fuel but can purchase additional fuel at the website to produce more war units. Since there is always a lot of work to do I suggest when possible develop a simple war board with a few drone units available and decent but not high graphics. If players like it you can always develop it further. If it works well it can increase fuel sales and therefore company profit from I.Zero. More profit from fuel sales may rise land price.
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I hope in the next website update we can finally have available info about what buildings are inside each land plot that is for sale. This will allow both sellers and buyers to get what they want. I believe this will be good to increase the volume of land trades.

To give 5% of all digital profit to land owners, website trades should be done only in fuel, but even if you want to keep website trades in eth and other coins that don't profit for land owners, at least add the option to pay trades with fuel. Of course with the same fee than other coins. So 5% of fuel will be paid in fees and will disappear in each trade. This would increase fuel sales, increasing land profit and therefore it should increase land price.

Another way to try to increase land price is making a skin rework to change the way skins are produced and sold. This rework was already needed for additional reasons.

rare harbor
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