It's finally here.
Staking Rewards is live! Although staking on Immutable X is not a new concept, we’ve taken significant steps to improve the experience by introducing a Staking Rewards product for our community. Staking Rewards represents a core mechanism that provides IMX token holders the opportunity to share in the success of the Immutable X protocol. The IMX token is issued by Digital Worlds NFTS Ltd (“the Foundation” or “Digital Worlds”) and the Foundation has partnered with Immutable in relation to the roll out of Staking Rewards.
Staking Rewards Highlights
- Staking Rewards features self-custodial functionality — you have control over your IMX tokens and they will never leave your wallet
- Staking Rewards introduces variable rewards based on the percentage of stakeable token supply staked (at least 5% annual rewards rate at 30% of stakeable token supply staked)
- Staking Rewards includes a new dashboard for a more transparent and simple staking experience: https://imx.community/staking
How does Staking Rewards Work?
First, to be eligible for Staking Rewards, you must take certain active steps:
- Have an amount of IMX staked in the IMX staking dashboard here
- Trade at least one NFT on the Immutable X protocol during the staking cycle (more on this below)
Next, Immutable X has a 2% protocol fee which is applied to all trades that are created and settled through the protocol’s global orderbook. As outlined in the whitepaper, 20% of this 2% fee is allocated to Staking Rewards, which will be swapped into IMX tokens on the market. These tokens are then distributed to all stakers that have qualified for receiving staking rewards over that cycle by taking the active steps outlined above.
Finally, here is a visual walkthrough of the staking process:
- Navigate to the Staking Rewards landing page and connect your wallet
2. Deposit funds into Layer 2 for staking
3. Stake $IMX tokens
4. Trade on the Immutable X Global Orderbook at least once during a staking cycle
5. Receive rewards (tokens are deposited into your wallet at the end of each cycle)
6. Unstake IMX tokens (tokens will be unlocked at the end of the cycle)
How is Staking Rewards calculated?
Your rewards are calculated based on the amount of IMX tokens you’ve staked and the length of time you’ve staked over that cycle (time-weighted average staked amount). This is then measured proportionally against the total amount of IMX staked to come to your specific reward distribution. Effectively, the longer and the more you stake, the greater your rewards may be. Each cycle lasts 14 days and rewards will be calculated at the end of each cycle.
Rewards = (IMX staked * average time staked in cycle) / Total IMX staking pool for cycle
For an initial promotional period, we are increasing staking rewards with extra tokens (not taken from protocol fees) to ensure an annualized reward rate of at least 5% with 30% of the stakeable token supply staked. If less than 30% is staked, rewards will be higher.
Stakeable Token Supply Criteria
As of August 31st, 2022 the stakeable IMX token supply is 327,663,668
Annual Rewards Rate
Why offer Staking Rewards?
The Staking Rewards Program aligns incentives to fuel the sustainable growth of Immutable X. Not only will games, marketplaces, and traders use the platform because of the value it provides, but they benefit from the continued growth of the ecosystem through staking. More rewards leads to more trading, more game launches, and more players on the Immutable X protocol, which ultimately results in more rewards for you. This wheel keeps turning and everyone gets to share in the long-term success.
- Activity on the protocol generates staking rewards
- Greater staking rewards increases the utility of IMX
- Greater utility of IMX results in more games, marketplaces, and traders
- More games, marketplaces, and traders create more trading volume
How does staking work? Where do these rewards come from?
The IMX token is issued by Digital Worlds NFTS Ltd (Digital Worlds, sometimes referred to as “the Foundation”) and Digital Worlds is operating a staking program with respect to the IMX token. References to “we” in these FAQs is a reference to Digital Worlds.
Staking rewards come directly from the trade volume on the ImmutableX protocol. Twenty percent (20%) of the protocol fee is converted to IMX on the open market and proportionately redistributed to IMX stakers based on the amount staked.
You must qualify to be eligible to receive staking rewards. To qualify you will need to have taken the following active steps: (1) stake your IMX tokens and (2) have traded on the protocol in the staking cycle.
For an initial promotional period, Digital Worlds is increasing staking rewards with extra tokens (not taken from protocol fees) to ensure a minimum annualized reward of 5% with 30% of the stakeable token supply being staked. More information on this can be found here.
I’m qualified for rewards and the cycle has ended, why can’t I see my rewards?
There can be up to a 48 hour delay from the end of a staking cycle through to when you see your rewards in your wallet, due to normal fluctuations in the processing and batching times of the ImmutableX rollup. Staking rewards are converted into IMX by withdrawing them from the protocol (L2) to Ethereum and then swapped on a DEX.
As a result, there may be delays in payouts, however these do not affect the actual cycle start and end times themselves.
My rewards seem low. Is there something wrong?
As rewards are based on the overall transaction volume on the protocol, they are susceptible to fluctuations in this volume affecting the final reward amounts.
Reward figures displayed on the dashboard represent the annualized reward for staking based on the most recent staking payout; these calculations also assume that you restake and compound your rewards each cycle.