With the rise of blockchain technology, Web3 startups and enterprises are actively leveraging the Ethereum blockchain to power decentralized applications and Metaverse projects. However, as the number of users increases, the congestion problem of the blockchain network becomes increasingly serious, resulting in slower transaction speeds and increased gas fees. To solve these problems, Immutable X emerged as the first layer 2 protocol on Ethereum for efficiently and environmentally friendly minting and trading of NFTs.
The birth and development of Immutable X
Immutable X is a project launched in 2018 by Australian brothers James and Robie Ferguson and Alex Connoly. They are all Forbes 30 under 30 entrepreneurs. Immutable X provides cheaper and greener infrastructure for NFTs while still retaining the scalability and security provided by Ethereum. World-renowned companies such as Marvel and Disney have used Immutable X to support their crypto projects, and some new generation games such as Gods Unchained and Illuvium are also built on Immutable X.
IMX Token Economics: Immutable X’s native token IMX is the core functional token of its protocol. As of this writing, IMX has a market capitalization of $178.7 million and a 24-hour trading volume of $75.3 million. The main uses of the IMX token include payment of network fees, governance, and staking.
Token distribution
The upper limit of IMX tokens is 2 million, which are distributed by its partner Digital Worlds NFT to the following areas:
51.74% Ecosystem Development
25% project development
14.26% Private Token Sale
5% public token sale
4% foundation reserve
In order to ensure that token owners can hold it for a long time, some tokens will be locked in some allocation areas and gradually unlocked to incentivize long-term growth and sustainability.
Core Purpose of IMX Token
The IMX token currently has three core uses:
Fees: Users are required to pay 20% of the protocol fee, paid in IMX tokens. Users can choose to pay directly with IMX, or have Immutable automatically convert the actual purchased currency to IMX on the open market.
Staking: Users can contribute a certain amount of IMX tokens to the network, and the staking rewards will be distributed proportionally to all users who stake IMX.
Governance: IMX token holders receive voting rights through decentralized governance, deciding how tokens are distributed, voting on developer funding and changes to the token supply.
Technical advantages of Immutable X
Immutable X positions itself as a second-layer extension solution for NFT on Ethereum, using the zk-rollups protocol, combined with the API abstraction layer, to change the NFT field. The platform allows for the creation and sending of ERC-20 and ERC-721 assets at scale while retaining the underlying security of Ethereum.
Solution Advantages:Immutable Users have the added benefit of not having to switch networks when connecting their wallets, lowering the barrier to entry for content creators and smaller developers.
Royalty Mechanism: With Immutable X, the market can add fees and asset owners can collect royalties on every NFT they mint. This opens up new revenue streams for individual creators and gaming businesses, encouraging them to continue making these assets more valuable to those who own them.
future blueprint
Immutable X recently launched a $500 million fund to enable mass adoption of Web3 games. The developer and venture capital fund will be used for Web3 NFT games and NFT-focused companies built on the Immutable X protocol. With many established brands and well-known Web2 game brands vying to enter the Web3 market, Ferguson hopes there will be an influx of Web3 games in the next few years.
Conclusion: The emergence of Immutable X has brought new changes to the NFT market and solved the congestion and high fee problems of the Ethereum blockchain. As more enterprises and developers join, the Immutable X ecosystem will become richer and more diverse, laying a solid foundation for the future development of Web3 and decentralized applications.