Immutable X is a non-fungible token (NFT)-focused Layer 2 protocol built on the Ethereum blockchain.
The project has built its platform, token, and marketplace so that there will be lower entry barriers for NFT creators, developers, and traders.
NFT-related projects get Ethereum’s security features, the speed and cost benefits of scaling through ZK-rollups, and SDKs and APIs that would allow developers to build projects in hours.
Meanwhile, those who mint and trade NFTs pay zero gas fees, keep the private keys of their assets and enjoy the liquidity of a shared global order book.
How does Immutable X work?
Immutable X uses a scaling solution called Zero-Knowledge Rollups (ZK-rollups), which bundles thousands of off-chain transactions, creates a “cryptographic proof” that all trades are valid, then sends the batch as a smart contract on Ethereum’s blockchain for confirmation.
Immutable X’s use of rollups, ZK-STARKs as cryptographic proof, and REST APIs enable the network to process 9,000 NFT transfers, trades, and mints per second.
The protocol has also built its own marketplace as well as an intermediate layer called LINK to allow Immutable X to support third-party NFT marketplaces and share a global order book.
Not only will NFT owners and traders have access to increased liquidity, but they can also manage their assets using their existing Ethereum wallets.
What is the IMX token?
Immutable X’s IMX token supports ERC-20 and ERC-721 standards and has three core functions:
IMX is used to pay fees. Immutable X doesn’t charge ETH gas fees, but it does have platform fees. The company takes a 2% fee on all primary asset sales and a 2% fee on every NFT trade.
Additionally, 20% of Immutable’s protocol fee must be paid in IMX tokens. This fee can either be paid directly in IMX tokens, or Immutable will automatically swap the purchase currency (e.g. ETH) for IMX on the open market.
IMX is also used for staking activities. A portion of the protocol fees goes to a “staking rewards pool” that’s distributed among IMX stakers.
You’re considered to be actively staking if you’re (a) holding IMX on L1 or L2 wallets, (b) holding an NFT or have executed a trade on Immutable X in the last 30 days, or (c) voted on a governance proposal in the last 30 days.
Lastly, IMX token holders can vote on token-related proposals. Immutable isn’t a DAO, though, so final decisions will still be made by company head honchos.
IMX is available on major crypto exchanges and is compatible with Metamask and Trust Wallet for self-custody.
Team background
Sydney-based Immutable (previously known as Fuel Games) was founded by blockchain enthusiasts James and Robbie Ferguson and Alex Connolly in 2018.
They initially focused on Immutable’s NFT trading games Gods Unchained and Guild Of Guardians but have since worked on being the back-end for NFT trading beyond the gaming industry.
Immutable now has more than 100 members who have worked with FAANG, fintech, and management consulting. James, Robbie, and Alex are still with Immutable serving as CEO, President, and CTO respectively.
Token Metrics:
- Holder Addresses: 35K (updated Oct. 2022)
- Circulating supply: 570M IMX
- Max supply: 2B IMX