What is Immutable X (IMX)?
A beginner's guide to IMX 📖
Immutable specializes in blockchain solutions for the gaming industry. Their flagship product, Immutable X, is a Layer 2 scaling solution designed to optimize the Ethereum gaming experience by enabling gas-free transactions.
Immutable X offers near-instant trade confirmation, improved scalability, and near-zero gas fees that are crucial for gaming environments and non-fungible tokens (NFT) transactions.
Immutable significantly increases Ethereum's transaction throughput by facilitating thousands of transactions per second (TPS) on its Layer 2, surpassing the limitations of Ethereum.
In the burgeoning play-to-earn gaming sector of the crypto industry, the Immutable X platform facilitates the interconnection of gaming characters and various games, allowing players to use a single profile across multiple titles.
The L2 leverages smart contracts written in Ethereum’s Solidity programming language to enable the creation of blockchain games and execute complex, autonomous agreements on its suite of products.
Immutable X’s native governance token, IMX, is classified as an Media & Entertainment token.
These projects focus on rewarding users for creating and interacting with content, games, gambling, or social media.
Further, IMX can also be used for governance, paying transaction and protocol fees, and rewarding users within the Immutable ecosystem.
Popular games built on Immutable X include God’s Unchained, Guild of Guardians, and Habbo X.
Kraken offers IMX, as well as 250+ other types of cryptocurrencies.
How does Immutable X work? ⚙️
Immutable X is a scaling solution designed to improve Ethereum by offering a faster and more cost-effective environment for smart contract execution. Immutable X’s ecosystem includes:
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Zero-Knowledge Rollups: Uses StarkWare’s technology to batch thousands of off-chain transactions into a single Ethereum transaction.
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Gas-Free Transactions: Users can create, trade, and manage NFTs without incurring gas fees.
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Carbon Neutral: Commits to offsetting the carbon footprint associated with its transactions.
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Developer SDK: Offers tools and APIs for game developers to build and launch gaming and NFT applications on Immutable.
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Marketplace Agnostic: Supports integration with multiple marketplaces, allowing for broad accessibility and liquidity provision of NFTs.
Immutable X's key innovations 🏆
There are three main components of Immutable X’s design:
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StarkWare’s zk-rollup – ZK-rollups increase blockchain efficiency by batching together transactions and relaying them to the main chain. StarkEx uses a cryptographic method where “provers” generate computational proofs for transactions and send them to the main chain and "verifiers" who confirm the validity of these transactions.
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Link – Mediators manage the secure communication between Ethereum and Immutable X, and ensure that all transactions are routed through Immutable X’s infrastructure.
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Fee structure – Market participants can set maker and taker fees for NFT trades, and NFT creators can add royalties. These fees are added to the platform’s built-in 2% fee.
What problem does Immutable X solve? 🥇
Immutable addresses the high gas fees, poor user experience, and scalability issues associated with minting and trading NFTs on the Ethereum network.
Ethereum's Layer 1 often struggles to provide an optimal environment due to its congested network and high transaction costs, particularly for NFTs.
Immutable resolves these challenges by offering a Layer 2 scaling solution specifically designed for NFTs, which ensures that artists, gamers, and collectors can mint, buy, and sell NFTs without gas fees, all while inheriting the security guarantees of Ethereum's base layer.
Why buy IMX? 🤷♂️
Someone may wish to purchase IMX for the following reasons:
- Purchase in-game assets and pay for in-game services: IMX can be used as in-game currency for games built on Immutable X.
- Staking rewards: IMX holders can stake their tokens to contribute to the network's security and earn rewards in return.
- Governance participation: IMX token holders have the right to vote on proposals that influence the future development of the Immutable X platform.
How to use the IMX cryptocurrency 🧑🏽💻
IMX is Immutable X’s native cryptocurrency and token holders can use it in several ways within the Immutable X ecosystem:
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Participate in protocol governance: IMX is used to empower the community to actively participate in the decision-making process of its protocols, ensuring a more democratic and inclusive approach to project management.
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Stake IMX: IMX owners can earn potential rewards by actively participating in the validation of transactions.
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Pay for transaction and gas fees: These fees compensate validators for their work in processing and verifying transactions.
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Use as a medium of exchange: IMX can be used to purchase in-game items, NFTs, and other digital assets on platforms that support it, often with additional discounts for using the digital asset.
Immutable X's origin
Immutable X was launched in March 2021 in Australia by founding members James Ferguson, Robbie Ferguson and Alex Connolly.
Key Founders
James Ferguson
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Title: Co-founder and CEO
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Professional Background/Qualifications: James Ferguson has a robust technical background with extensive experience in software engineering. He has held leadership roles in software development, focusing on building scalable systems.
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Contributions to the Project: James oversees the business strategy and technological development at Immutable, ensuring that the platform supports high-volume NFT transactions securely and efficiently.
Robbie Ferguson
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Title: Co-founder
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Professional Background/Qualifications: With a software engineering background, Robbie Ferguson has been deeply involved in product management and the development of blockchain-based solutions before co-founding Immutable.
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Contributions to the Project: Robbie focuses on the platform’s adoption, driving strategic partnerships, and integrating blockchain technology in gaming and NFTs, enhancing scalability and user interaction.
Alex Connolly
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Title: Co-founder and CTO
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Professional Background/Qualifications: Alex Connolly brings a strong technical expertise in blockchain technology and software development. His experience is key in developing technical solutions that address the unique challenges of the NFT market.
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Contributions to the Project: As the CTO, Alex is pivotal in directing the technological roadmap for Immutable, focusing on innovation and the deployment of features that enhance the user experience and platform efficiency.
Immutable secured multiple rounds of funding from major investors, including a Series A round in 2019 led by Naspers Ventures and Galaxy Digital, and a Series B round in September 2021, where they raised $60 million from investors such as Bitkraft Ventures and King River Capital.
In March 2022, Immutable raised funding from Tencent and Animoca Brands, leading to a valuation of $3.5 billion and placing the company among Australia's most valuable private tech firms at the time.
IMX tokenomics 📊
Immutable X’s native cryptocurrency, IMX token, was released in 2021 as an ERC-20 token with a maximum supply limit of 2,000,000,000 tokens.
The issuance schedule of IMX aligns with Immutable's long-term vision and the needs of its community. Key components of this schedule include:
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Ecosystem Development and Participant Rewards: A significant portion of the IMX supply is allocated to the growth of the Immutable ecosystem. This includes rewards for developers, users, and partners who contribute to the platform's expansion and adoption.
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Staking Rewards: IMX holders can stake their tokens to earn rewards. This helps secure the network and aligns the interests of token holders with the platform's success.
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Company Reserve and Team Allocation: A reserve is maintained for the company and team members, and vested over a period to align long-term interests with the platform's growth.
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Public Sale and Initial Distribution: The public sale of IMX tokens was conducted to distribute tokens to a broader audience, facilitating initial liquidity and distribution.
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