Illuvium Manages to Sell $72M Worth NFT Land Via Dutch Auction

Illuvium Manages to Sell $72M Worth NFT Land Via Dutch Auction
  • NFT minting costs a fraction of what Yuga Labs’ Otherside selling charged consumers.
  • Illuvium’s native ILV token holders will get a portion of the $4,018 ETH earned.

For its non-fungible token (NFT) Land, Illuvium succeeded in maintaining the average transaction cost at under $20 by conducting a Dutch auction on the Illuvium X layer-2 scaling solution. NFT minting costs a fraction of what Yuga Labs‘ Otherside selling charged consumers. According to Illuvium, customers only paid $350,000 in fees to mint approximately 20,000 plots of Land valued at roughly $72 million, all without any recorded network faults.

Dutch Auction Method

The Otherside sale, on the other hand, was riddled with problems. Some users spent as much as $14,000 in gas expenses to use the service. There was an increase in Ethereum congestion because of the rush by purchasers to have their purchases delivered promptly.

Most of the 19,969 land plots were auctioned off to ILV holders under a Dutch auction method, in which the price per unit drops over time as more plots are sold ahead of it. This enabled customers to put off placing orders until a more favorable pricing range became available.

To counter Ethereum NFT sales, Illuvium co-founder Kieran Warwick claimed the sale was intended as an antidote to wasted bids that benefit miners but harm buyers. Illuvium’s native ILV token holders will get a portion of the $4,018 ETH earned during the sale. On the other hand, buyers mostly utilized ILV tokens to pay for their goods. The staked version of ILV tokens, totaling 239,388 sILV2, will be destroyed.

In light of the NFT bear market’s sharp drop in volume over the last 30 days, this was an excellent performance. According to NFT market tracker CryptoSlam, sales volume peaked on May 6 at $137 million and has since dropped 78% to $31 million as of Sunday.

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