The IMX token is at the core of Immutable’s protocols, serving as the native utility and governance token. With a total supply of 2,000,000,000 IMX, issued by Digital Worlds NFTs, the token is designed to contribute to the network and facilitate various functionalities.
1. Utility of IMX Token:
IMX serves multiple purposes within the Immutable ecosystem. 20% of the protocol fees on every transaction within the platform must be paid in IMX. If a user does not own IMX, Immutable will convert the fee by purchasing IMX on the open market, ensuring a seamless user experience.
2. Staking and Rewards:
IMX holders have the opportunity to stake their tokens and earn rewards from the staking reward pool, where all fees paid in IMX are collected. Staking operates on 14-day cycles, and during each cycle, 20% of the collected protocol fees are converted to IMX and distributed to eligible stakers. The staking mechanism is designed to incentivize community participation and reward token holders.
Here’s a hypothetical example of a table showcasing possible rewards for staking IMX:
| Amount Staked (IMX) | Duration (Days) | Reward Rate (%) | Possible Rewards (IMX) |
|---|---|---|---|
| 100 | 14 | 5 | 5 |
| 500 | 14 | 5 | 25 |
| 1000 | 14 | 5 | 50 |
| 100 | 30 | 10 | 10 |
| 500 | 30 | 10 | 50 |
| 1000 | 30 | 10 | 100 |
In this example:
- The “Amount Staked” column represents the quantity of IMX tokens staked.
- The “Duration” column indicates the number of days the tokens are staked.
- The “Reward Rate” column shows the hypothetical annual percentage rate for staking rewards.
- The “Possible Rewards” column calculates the potential rewards earned based on the amount staked, duration, and reward rate.
3. Governance:
IMX token holders have the privilege of participating in the governance of Immutable. They can use their tokens to vote on proposals related to the future development and expansion of the protocol, thereby having a say in the direction of the platform.
4. IMX Supply and Distribution:
The total supply of IMX is 2,000,000,000 tokens. The distribution of the token supply is allocated as follows:
- Ecosystem Development (e.g., User Rewards & Developer Grants): 51.72%
- Project Development: 25%
- Token Sales (Public & Private): 19.28%
- Foundation Reserve: 4%
Depending on the distribution areas, tokens are locked to ensure that owners are committed to the long-term success of the Digital Worlds Foundation ecosystem.
6. Supply schedule
Daily Rewards: A dedicated pool of IMX rewards is distributed to users every 24 hours, calculated based on their proportional share of the total. To foster long-term growth and commitment, 66.67% of these daily rewards are subject to a linear locking period of six months.
Developer Grants: These grants are extended to entities and individuals who exhibit a keen interest in developing on the IMX platform. The allocation of funds for developer grants is managed both directly by the Foundation and through decentralized governance mechanisms.
This dual-pronged approach to ecosystem development aims to incentivize sustained participation and innovation, thereby contributing to the overall growth and success of the IMX platform.
7. Developer Grants and Trading Rewards:
Digital Worlds NFTs, in partnership with Immutable, offers IMX rewards for developers through Developer Grants and for traders through Trading Rewards. New rewards programs are continually being added to accelerate the growth of the Immutable protocol and create more opportunities for community ownership.
8. Future Developments:
IMX is poised for further upgrades that will enhance its fundamentals. It will be used as the core gas currency for Immutable zkEVM, aligning the platform’s success closely with IMX holders. Additionally, staking IMX will continue to evolve, with new features and rewards programs being introduced.
Conclusion:
The IMX token is integral to the Immutable ecosystem, offering utility, governance, and rewards for its holders. With its well-structured tokenomics and future upgrades, IMX is set to play a pivotal role in the growth and success of Immutable’s Web3 gaming platform.
For more detailed information on IMX tokenomics and Immutable’s vision, you can refer to the official whitepaper.
