The article comprehensively examines the causes and consequences of the socio-economic decline that occurred in the Ilkhanid state between 1284 and 1295. The main focus of the study is the administrative vacuum that emerged after the execution of Sahib-Divan Shams al-Din Juvayni and its impact on the financial foundations of the state. Initially, the principal forms of land ownership are analyzed and their proportion within the state is determined. The condition of the major cities is also addressed, with particular emphasis on the unity of the population of Tabriz in the face of injustice. The article further analyzes the failure of Arghun Khan’s attempts to restore the traditional Mongol model, the irrational expenditure of the treasury during the reign of Gaykhatu Khan, and the negative consequences of granting the dynasty’s private lands, known as “Inju”, as tax farms (muqata‘a). One of the central aspects of the study is the examination of the failure of the “chav” reform introduced in 1294 and its paralyzing effect on trade relations. Based on the analysis of primary sources and scholarly works, it is concluded that the years 1284–1295 marked the culmination of tensions between the nomadic Mongol aristocracy and the sedentary local bureaucracy, and that the deep crisis of this decade made the radical reforms of Ghazan Khan a historical necessity. The article also provides a detailed overview of the social stratification of the period and highlights the socio-economic impact of each group.