Illuvium team cuts wages to extend operational runway into 2027

Illuvium’s team is taking another financial haircut to keep the lights on. Co-founder Kieran Warwick said Friday that staff have agreed to reduce their wages again, a move he says pushes the studio’s operational runway past August 2027.

The math behind survival

This isn’t the first time Illuvium has tightened the belt. In early 2025, the studio undertook a significant restructuring that slashed its core team from a peak of roughly 100 to 150 people down to 66 contributors.

That same restructuring brought the monthly burn rate from approximately $900K down to about $500K. Salary caps were also introduced, with certain roles capped at $85K. Many team members opted to take compensation in ILV tokens instead of cash, a bet that only pays off if the project survives long enough to matter.

The latest wage cuts layer on top of those earlier reductions. Warwick now puts the runway at more than 12 months, which on his numbers means the studio can operate into the second half of 2027 without needing a lifeline.

For context, $132 million in historical funding is a substantial war chest by crypto gaming standards. The fact that the studio still needs to cut wages to stretch its runway tells you something about how expensive game development is, and how little revenue the broader blockchain gaming sector is generating right now.

What Illuvium is building toward

The central bet is the Overworld MMO, a massively multiplayer online game that represents the studio’s flagship product and its best shot at generating meaningful revenue.

Loadout, which integrates ILV staking mechanics, is reportedly nearing a launch announcement. The feature essentially lets players put their tokens to work within the game’s ecosystem rather than just holding them in a wallet.

The studio is also continuing development on its Arena updates and the Beyond collections, both of which serve as interim revenue generators and community touchpoints.

A sector under pressure

Illuvium’s cost-cutting happens against a grim backdrop. Proof of Play and other blockchain gaming studios have been closing or dramatically scaling back operations.

Warwick has acknowledged that crypto gaming sentiment is low. His argument, essentially, is that Illuvium is better capitalized and better positioned than most studios in the space.

The team members who opted for ILV token compensation instead of cash are making an especially concentrated bet. If Overworld launches successfully and drives demand for the token, they could be handsomely rewarded. If not, they’ve accepted below-market wages for a digital asset that might not recover.