Question 1

What is ILV?

Accepted Answer

ILV is the ERC-20 governance and utility token of the Illuvium ecosystem, minted on Ethereum. It is both a transferable token and a tool used for ecosystem governance and related mechanisms; therefore, “holding ILV” and “participating in Illuvium ecosystem governance or staking arrangements” are uses at different levels. The fact that the token can be traded does not mean its holders acquire ownership of the project company, the DAO treasury, or all ecosystem assets. Specific ILV governance, staking, and reward arrangements may be adjusted under the applicable governance or mechanism rules, which should be checked before participation.

Question 2

How is ILV used for governance?

Accepted Answer

ILV's governance function is to participate in decentralized governance of the Illuvium ecosystem; however, merely holding tokens does not automatically mean that a holder has usable voting eligibility in every governance procedure. Whether voting is available in practice, how voting power is calculated, and whether staking, a snapshot, or other conditions are required depend on the rules applicable to that governance mechanism. This distinction is important: a token balance indicates the amount held, while governance eligibility additionally requires the system to recognize that balance or the corresponding staking status under its rules. Users should therefore verify the eligibility criteria, timing, and operational requirements published for a specific proposal or election before participating.

Question 3

Is ILV's supply limited?

Accepted Answer

ILV has a maximum supply of 10 million tokens. This is the protocol-defined supply cap, describing the maximum number of ILV that may exist, and is not equivalent to the circulating amount immediately available for trading in the market at a given time. Circulating supply also depends on factors such as historical allocations, locks, unlocks, and whether holders are willing to sell. Therefore, the statement that “the maximum supply is 10 million” alone cannot be used to infer immediate market supply or price outcomes; it answers the long-term supply cap, not the real-time tradable amount.

Question 4

What effects does staking ILV have?

Accepted Answer

Illuvium's staking arrangements can allow ILV, or ILV/ETH liquidity tokens that qualify under the program, to enter the relevant staking pools and participate in reward mechanisms. After assets are deposited into a staking contract, whether they can still be immediately transferred or withdrawn depends on the selected pool and lock terms. Locking ties a participant's asset commitment to the program duration: during the lock period, participants generally cannot dispose of that portion of assets as freely as an unlocked balance; different lock durations and pool settings affect reward weighting. Participants therefore need to assess reward rules, withdrawal restrictions, token price volatility, and smart-contract risk together, rather than treating staking as an unconditional fixed-income product.

Question 5

Does holding ILV mean owning the DAO treasury?

Accepted Answer

No. ILV's governance or utility functions do not amount to ownership of DAO treasury assets; nor does holding ILV by itself create a partnership, joint venture, or employment relationship with Illuvium. Governance participants may express their views on governance matters under the applicable mechanism, but this differs from having divisible, redeemable, or directly controllable property rights in treasury assets. Distinguishing governance rights from asset ownership is necessary to correctly understand the boundaries of the rights represented by the token.

Question 6

Are ILV staking rewards fixed?

Accepted Answer

ILV staking rewards are not fixed-rate returns. Actual outcomes may be affected by staking-pool weights, revenue-distribution arrangements, lock conditions, and DAO or mechanism adjustments, so returns in any period cannot automatically be extrapolated as future returns. Returns should also be considered together with costs and restrictions: locking reduces liquidity for that portion of assets, ILV price changes affect fiat-denominated outcomes, and staking arrangements involve technical and smart-contract risks. Even if reward figures increase in token terms, this does not guarantee that their market value or value available for withdrawal at any time will remain unchanged.

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