Immutable X (IMX) Research Report

Project Name: Immutable X Tag: $IMX Type: Layer2

Introduction

Immutable X is a non-EVM compatible Layer 2 network deployed on Ethereum, relying on Starkware's StarEx technology. It features instant transaction confirmation and zero gas fees, with primary use cases in NFT trading and crypto gaming.

Technical Features

StarkEx

Immutable is an implementation of StarkWare's StarkEx technology. StarkEx uses zero-knowledge proofs to keep most data off-chain. Like all rollup solutions, StarkEx collects a batch of transactions from the Ethereum mainnet and submits them as a single transaction. In this technology, Immutable uses STARKs to compute a large number of transactions in a single batch and then uses a single STARK proof to confirm the validity of these transactions on-chain. The validity of the submitted transaction can be checked by a special contract on the Ethereum mainnet. All transactions in the batch share the cost of on-chain operations, providing high scalability for Immutable.

Zero Gas Fees

To eliminate the requirement for users or developers to own any native tokens, Immutable has devised a strategy:

1. Charge fees on transactions where value flows (e.g., primary and secondary sales) and take the fees from the value itself rather than an additional native token.
2. Do not charge fees on transactions where no value flows (e.g., mints, transfers).
3. Use anti-spam techniques to prevent abuse of these free transactions.
4. Subsidize free transactions with fees from value-generating transactions. Immutable has created a global protocol order book where any marketplace can attach fees to the orders they create. When these orders are executed on any marketplace within the protocol, the originating marketplace will still receive the fees. This incentivizes liquidity sharing among marketplaces, making it more likely for orders to be executed across all markets rather than just one.

IMX Token

Fees: Immutable does not charge gas fees for NFT trading and minting but charges a 2% protocol fee on every transaction settled through the Immutable global protocol. 20% of the protocol fee is converted to $IMX and transferred to the staking rewards pool. Staking: All IMX tokens used to settle transaction fees are sent to the staking rewards pool. This pool is distributed to users currently staking $IMX. $IMX is distributed to eligible stakers every 14-day staking period. Governance: All $IMX holders have the right to vote on token-related proposals, including token reserve allocation, developer grants, daily rewards activation, and token supply changes. Voting rights are determined by the number of tokens held by the user.

Key Metrics

Tokenomics

The total supply of IMX is 2,000,000,000 tokens, which will be gradually released over 4.5 years.

• Foundation Reserve: 4%
• Public Sale: 5.42%
• Private Sale: 13.86%
• Ecosystem Development: 51.72%
• Protocol Development: 25% ##Community & Background
• Twitter Followers: 421,000+
• Discord Members: 82,900+
• Telegram Members: 14,700+ Immutable has raised a total of $279.8 million in funding. In March 2022, Immutable completed a $200 million funding round at a valuation of $2.5 billion, led by Temasek, with participation from Mirae Asset, ParaFi Capital, Declaration Partners, and others. Prior to this, Immutable X raised $42.5 million across three rounds, with investors including Nirvana Capital, Continue Capital, Naspers (major Tencent shareholder), Digital Galaxy, Coinbase, and others.