In 2021, ImmutableX released $IMX, their native ERC-20 utility token, to the world. Currently, the IMX coin has three core uses in the ImmutableX protocol: fees, staking, and decentralized governance.
Let’s break each one down further.
$IMX Coin Fees
While ImmutableX does not charge any gas fee for the minting and trading of NFTs, a 2% protocol fee is applied to every transaction created and settled through the protocol’s global order book. In turn, 20% of the protocol fee is converted to $IMX and is subsequently allocated to the staking rewards pool.
Unlike other chains that require users to own their native token to perform transactions, Immutable automatically swaps the purchase currency (e.g., ETH) for $IMX on the open market, thereby eliminating the need for users to hold $IMX coins to access its marketplace. This automatic swap also helps save users time, energy, and money relative to swapping on a decentralized exchange. Instead, all users can buy and sell NFTs on IMX marketplaces immediately after depositing ETH into the ImmutableX protocol.
$IMX Coin Staking
Staking is a fundamental mechanism that provides $IMX coin holders an opportunity to partake in the success of ImmutableX’s ecosystem. Staking rewards are generated from 20% of the protocol fee. They are later redistributed to all qualified stakers in the ImmutableX network after each 14-day staking cycle.
All staking rewards are proportional to the amount of $IMX staked relative to the total reward pool. So, if a user were to contribute 10% of all $IMX coins staked in a particular cycle, their reward would also be 10% of the total staking rewards pool.
To qualify for $IMX staking rewards, all users must hold $IMX on an L1 or L2 blockchain and vote on a governance proposal in the last 30 days. Additionally, users must either hold an NFT on ImmutableX or have completed a trade within the last 30 days. At the end of each staking cycle, given they meet the appropriate criteria, users may opt to re-stake their coins to compound their rewards.
$IMX Coin Decentralized Governance
$IMX token holders gain the right to vote on token-related proposals, including allocating token reserves, voting on developer grants, activating daily rewards, and changes in token supply. All protocol governance takes place on the Ethereum mainnet, with wallet balances sourced across both the mainnet and Immutable X protocol.
Like many decentralized governance structures, individual voting power is determined by the number of coins a user holds. The more coins a user holds, the greater their voting impact is. By empowering the community with a say in the future of the token, ImmutableX aims to constantly add utility and increase the decentralization of $IMX.
How to Buy $IMX Coin
While users can buy $IMX directly on major marketplaces like Coinbase, Gemini, and Binance, they can also earn $IMX through the ImmutableX Trading Rewards program. With Trading Rewards, users can earn $IMX simply by trading NFTs on any marketplace integrated with the ImmutableX global shared order book, like TokenTrove or GameStop Marketplace. Similar to staking rewards, all trading rewards are paid out on 14-day cycles to eligible traders. From there, this $IMX can be staked into even more $IMX.