Immutable gas subsidy shifts and Illuvium economic pressure

Immutable developers must pay gas fees for their projects starting in 2026. The promotional period where Immutable paid all gas for Passport users and mints ends in December 2025. This transition moves the cost of transactions from the network to the individual game studios. Developers use the Immutable Hub to top up prepayments and manage their spending. For 100,000 users, a studio pays between $500 and $1,000. This strategy treats gas sponsorship as an infrastructure cost similar to traditional server fees. Developers can select specific user behaviors or transaction types to subsidize as they enter the third phase in late 2026. Immutable expands its reach through the Immutable zkEVM, an EVM-compatible rollup powered by Polygon. This technology allows for more complex smart contracts and faster transaction speeds. Immutable has established partnerships with companies like DM2C and QAQA to reach the Asian market. These collaborations aim to bring new players into the ecosystem through quiz-based rewards and promotional events. Immutable has onboarded over 500 well-funded games and reached 5 million wallet users. The company has raised more than $300 million from several major investors like Temasek, Tencent, and Galaxy. Immutable also partnered with Netmarble’s web3 subsidiary, MARBLEX, for a migration to the Immutable zkEVM.

Illuvium’s economy depends on a 10 million ILV token supply. Land owners receive 5% of total in-game revenue based on their fuel production levels. The Illuvium DAO produces 19 times the fuel land owners generate to facilitate revenue distribution for stakers. This mechanism directs ETH revenue from player purchases back to the ILV staking pool. The Illuvium team employs 60 to 70 developers and 90 artists to build the Overworld, Zero, and Arena titles. Players capture Illuvials in the Overworld to use as fighting teams in the Arena. Because the system relies on player spending, the game must maintain high profitability to reward stakers. The upcoming Overworld mobile launch adds new engagement variables to this economic loop. Players use sILV2, a synthetic version of ILV, as an in-game currency to avoid selling ILV directly. This dual-token system helps buffer emissions and reduces sell pressure. The IlluviDex marketplace also contributes to the revenue pool through a 5% fee, with 3% going to stakers and 2% to Immutable. Illuvium raised $72 million in a land sale of nearly 20,000 NFTs and $38 million at its token generation event. The project recorded 23,199 downloads and approximately 3,800 active players during its public beta. Illuvials have 21 affinities and 21 classes, and players can fuse three similar Illuvials to create an upgraded version. Can the current revenue model sustain the influx of new players during the mobile rollout?

The competition between an infrastructure provider and a game studio defines the current market split. Immutable provides the tools for hundreds of developers to launch titles, while Illuvium attempts to build a single, massive AAA universe. Illuvium’s market cap reached $207 million in August 2025, following a recovery from a June low of $9.15. While Immutable transitions to a model where developers shoulder gas costs, Illuvium faces the immense challenge of maintaining its revenue distribution to stakers amid new competitive pressures from the mobile gaming launch. You should observe how the token release for AAA studios impacts these valuations. Illuvium’s popularity remains tied to the profitability of its staking rewards. If players stop spending ETH on fuel or assets, the staking rewards will drop, prompting more selling. Immutable leads in deployment volume with its 500+ games and 5 million users. Illuvium targets the same users through high-fidelity graphics and gameplay that allows for interoperable asset use across its universe. The ILV price remains a fraction of its 2021 peak of $1,911. The current ILV price is $21.85 as of August 2025. Immutable charges a 2% fee on all primary and secondary sales.