# Tokenomics

The $ILV token serves a dual purpose within the Illuvium ecosystem. As a governance token, it allows holders to participate in Illuvium's decentralized governance, influencing the project's direction. Additionally, $ILV is a tradable token that can be bought, held, or exchanged, offering value and utility to its holders.

In this section, we'll discuss the tokenomics of the $ILV token, outlining the maximum total supply, the role of $ILV holders in decentralized governance, and how the token supports the Illuvium game. We'll also detail various mechanisms used to distribute the token.

![](/files/wblZ8RtD2RV0suWt0VQW)

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