# 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.

![](https://1403546177-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FEFmRiyOhmh4eOM9LzSz1%2Fuploads%2FV0yjuPcbDa5TIhaqb4Y2%2F0.png?alt=media)

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