Key Takeaways:
- Immutable X is a Layer-2 scaling solution for Ethereum by the Immutable project.
- It aims to enhance the non-fungible token (NFT) market by addressing high transaction costs and scalability issues, offering developers, creators, and users a seamless trading experience.
- Immutable X uses Zero-Knowledge (ZK) rollup technology to batch multiple NFT transactions into one, reducing gas fees and increasing transaction throughput while ensuring transactions remain secure on Ethereum.
- Immutable provides developer-friendly tools, including REST APIs and a Software Development Kit (SDK), to facilitate easy creation and transfer of NFTs without needing to interact directly with smart contracts.
- The IMX token, central to Immutable’s ecosystem, is used for governance and incentivising participation, and is integral to the platform’s unique fee structure, which supports seamless transactions with a 2% fee paid in IMX or ETH.
- Immutable offers a staking feature for IMX token holders, rewarding participants with monthly distributions based on their engagement and contribution, with eligibility tied to active governance participation and recent NFT trades or holdings.
What Is Immutable X?
Immutable X is a leading Layer-2 scaling solution for Ethereum by the Immutable project. It is specifically designed to enhance the efficiency of non-fungible tokens (NFTs) and their transactions. Its primary goal is to address the core issues faced by the Ethereum network, such as high gas fees, low transaction throughput, and poor user experience, particularly in the NFT space.
As the industry evolves, the demand for scalable, secure, and environmentally friendly blockchains has become paramount. Immutable addresses these challenges with its Layer-2 scaling solution for Ethereum, focusing on instant trade confirmation, zero gas fees for minting and trading NFTs, and maintaining the robust security of the Ethereum network.
The platform caters specifically to the NFT market, aiming to solve the prevalent issues of high transaction costs and scalability issues that persist on the Ethereum network. Immutable presents a promising infrastructure for developers, creators, and users, facilitating a seamless and cost-effective trading experience.
How Does Immutable X Work?
The core of Immutable X’s operation is its utilisation of Zero-Knowledge (ZK) rollup technology, which batches multiple NFT transactions into a single one on the Ethereum blockchain, significantly reducing the gas fees and enhancing transaction throughput. The process involves taking computation and storage off-chain while ensuring that all transactions are fully secured by Ethereum.
Unlike traditional transaction validation methods, ZK rollups aggregate hundreds of transactions into a single ZK proof, specifically a Zero-Knowledge Scalable Transparent Argument of Knowledge (ZK-STARK) proof. ZK-STARK is a validation method that ensures the privacy and security of transactions by proving possession of specific data without revealing any sensitive information and ensuring a significant reduction of gas fees.
The consolidation of transactions into a ZK-STARK proof drastically reduces the computational and memory resources required for blockchain validation. As a result, Immutable significantly lowers gas fees and increases the transactions per second (tps) capability, addressing two major challenges faced by the Ethereum network.
Furthermore, Immutable provides powerful developer tools. Its REST APIs enhance blockchain interaction, allowing users to seamlessly create and transfer NFTs without direct engagement with smart contracts. The platform’s Software Development Kit (SDK) simplifies the integration process for developers, enabling the rapid creation of NFT-based projects.
ZK-STARK vs ZK-SNARK Technology
In the realm of cryptographic proofs, ZK-STARKs and ZK-SNARKs are two prominent technologies, each with its advantages. ZK-SNARKs, or Zero-Knowledge Succinct Non-Interactive Argument of Knowledge, enable the validation of transactions without revealing all inputs or redoing complex computations. Their succinct nature ensures a faster verification process than the original computation, with the added benefit of minimal communication requirements. However, ZK-SNARKs necessitate a trusted setup, posing potential security risks if the setup data is compromised.
On the other hand, ZK-STARKs offer a more transparent and quantum-resistant alternative, free from the need for a trusted setup. Although they have a higher verification overhead, ZK-STARKs are particularly effective for large-scale transactions, providing scalability and potentially faster processing times for extensive datasets.
What Is the IMX Token?
The IMX token, central to Immutable’s ecosystem, is an ERC-20 token designed to underpin the protocol’s economy and incentivise its participants. Through a partnership with Digital Worlds NFTs Ltd., the IMX token distribution and issuance aim to bolster the platform’s adoption and utility.
IMX is utilised for governance, allowing token holders to vote on key decisions regarding the platform’s development and future direction. Additionally, the IMX token plays a crucial role in incentivising the platform’s usage, where users are rewarded with IMX tokens for participating in network activities, such as trading and creating NFTs, thereby encouraging an active ecosystem.
Tokenomics of IMX Token
The tokenomics of the IMX token are designed to support its long-term sustainability and utility within the Immutable ecosystem. The total supply of IMX tokens is fixed, creating a scarcity that could potentially drive value in the event that the platform grows and demand for the token increases.
There are about 1.39 billion IMX tokens in circulation (at the time of writing). The IMX token has a maximum supply cap of 2 billion tokens, with a strategic allocation aimed at supporting ecosystem development and growth.
Ecosystem development initiatives, such as user rewards, marketing efforts, and liquidity provisions, make up 51.74% of the allocation, which is intended to ensure the long-term viability and competitiveness of the Immutable platform in the evolving blockchain landscape.
Additionally, 25% of the tokens are allocated to the platform’s development. Another 4% is allocated as a part of the foundation’s reserve, while 14.26% of the tokens distributed through private sale are vested to be unlocked over two-and-a-half years.
The distribution strategy aims to balance rewarding those who contribute to the platform’s success while ensuring a wide distribution of tokens to maintain a decentralised and engaged community.
Features and Utility of IMX Token
The IMX token offers a wide array of features and utilities that support the Immutable platform’s operations and governance. Its primary utility lies in facilitating the platform’s governance, enabling token holders to influence decisions related to upgrades and changes within the ecosystem.
Protocol Fees, Transaction Fees, and Incentives
Immutable has implemented a unique fee structure to streamline transactions within its ecosystem. Developers utilising the platform are subject to a 2% fee in IMX tokens. This fee can be settled either directly with IMX or alternatively with ETH through an automatic conversion from the transaction’s currency. This mechanism ensures seamless engagement on the platform without the necessity for users to hold IMX beforehand.
Immutable also utilises IMX tokens to drive user engagement through a rewards system. Users earn points by engaging in activities like trading NFTs on the platform, which can then be exchanged for IMX tokens, further integrating the token into the platform’s daily operations.
Staking and Rewards
The IMX token offers a staking feature accessible to all holders, provided they meet specific criteria related to engagement and participation within the Immutable ecosystem. By staking IMX tokens, participants can earn rewards based on their active engagement and contribution to the protocol. Token holders receive the rewards every 14 days.
Eligibility for staking rewards requires holding IMX tokens, active participation in governance through voting, and either holding an NFT on Immutable or having completed a recent trade. This system not only fosters a deeper connection between users and the platform, but also encourages continuous activity and contribution to the ecosystem’s vibrancy.
Governance Participation
Governance is a critical aspect of IMX tokenomics, granting holders the power to influence key decisions within the Immutable ecosystem. Token holders can vote on a variety of proposals, ranging from token reserve allocation to changes in the token supply and the activation of daily rewards. The governance model is designed to be inclusive and decentralised, allowing for a wide range of proposal categories that can be introduced through the governance process.
The Immutable Ecosystem
The Immutable ecosystem comprises various components designed to work seamlessly together, providing an end-to-end solution for developers, creators, and users within the NFT space. Key elements include the Immutable Marketplace, a venue for buying, selling, and trading NFTs with no gas fees; and Immutable SDKs, which allow developers to easily integrate their applications or games with the Immutable platform.
The first core component of its infrastructure is Immutable X, a Layer-2 scaling solution powered by StarkEx ZK rollups that enable developers to build fast, scalable, and secure applications for NFTs and blockchain games. The second core component is Immutable’s Zero-Knowledge Ethereum Virtual Machine (zkEVM), an EVM-compatible blockchain built in partnership with Polygon to completely remove transaction fees in Web3 gaming.
Other components that drive the revenue engine and enhance players’ experience in the Immutable ecosystem are shown below:
Immutable Passport: Immutable introduces the Immutable Passport, a non-custodial wallet and authentication solution designed to simplify user onboarding through passwordless sign-on and automated wallet creation. This development is a step towards creating a unified gamer identity solution.
Immutable Orderbook: The Immutable Orderbook allows for the sharing of NFT orders across top marketplaces, enhancing the distribution and demand for assets. This feature supports the ERC-1155 Orderbook on Immutable zkEVM, facilitating seamless transactions within the ecosystem.
Immutable Checkout: Immutable Checkout offers an all-encompassing transaction infrastructure, managing the checkout process for games and marketplaces. This infrastructure aims to streamline transactions, increasing conversion rates and enhancing the overall user experience.
The platform is also home to various high-profile partnerships and integrations with leading NFT projects and marketplaces, enhancing its utility and accessibility. This rich ecosystem not only facilitates the growth of the NFT space but also fosters innovation by offering a scalable and efficient infrastructure for creating and exchanging digital assets.
Some of the decentralised apps (dapps) built on Immutable include:
- Illuvium
- Gods Unchained
- Guilds of Guardians
- Immortal Game
How to Buy Immutable (IMX) With Crypto.com
Crypto.com offers a user-friendly platform to buy IMX tokens and engage with Immutable’s network.
Follow these steps to start buying IMX tokens on Crypto.com:
- Download the Crypto.com App and create an account.
- Complete the necessary verification process to unlock full access to the platform.
- Deposit funds into the Crypto.com account; users can utilise fiat currency or other cryptocurrencies to fund their accounts.
- Navigate to the ‘Buy’ section of the App and search for the IMX token.
- Specify the amount of IMX tokens to acquire and review the transaction details.
- Confirm the transaction and wait for the order to be executed.
- Monitor the IMX token holdings in the Crypto.com App, which doubles as a wallet.
Crypto.com provides a secure and reliable trading environment, ensuring that users can trade IMX tokens with confidence.
Take advantage of the platform’s intuitive interface, advanced trading features, and competitive fees to make the most of this IMX token trading experience.
Conclusion
Immutable represents a significant advancement in the blockchain and NFT landscape, offering a scalable, secure, and user-friendly platform for the Ethereum ecosystem. Through its innovative use of ZK rollup technology and a suite of development tools, Immutable addresses the limitations of Ethereum, providing an efficient environment for NFT transactions and game development. As the platform continues to evolve, it is poised to play a pivotal role in the broader adoption and growth of NFTs and blockchain gaming.
Immutable’s compelling solution to the challenges facing the NFT market on the Ethereum network offers scalability, security, and sustainability, and the IMX token plays a central role in this ecosystem, driving governance, user engagement, and platform growth. As the blockchain and NFT spaces continue to evolve, Immutable and the IMX token stand out as key contributors to the future of digital asset trading and creation.
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