Immutable X (IMX) is a layer-2 scaling solution for non-fungible tokens (NFTs) on the Ethereum blockchain. It was developed to provide fast, secure, and gas-free NFT transactions without compromising the security and decentralisation of Ethereum. The protocol uses a technology called zk-rollups (zero-knowledge rollups), which bundles multiple transactions into a single batch and verifies them on Ethereum, reducing costs and improving scalability.

IMX is the native utility and governance token of the Immutable X ecosystem. It is used to incentivise users, secure the network, and allow participation in governance decisions. The protocol was specifically built for scaling NFTs and supports marketplaces, game developers, and creators looking to build NFT-based applications.

Immutable X (IMX) serves several purposes within the ecosystem:

• Transaction Fees: Users can pay transaction fees in IMX or Ethereum (ETH). Immutable X offers gas-free trading and minting of NFTs by offloading the transaction to layer 2, making the process more efficient.

• Staking: IMX holders can stake their tokens to support the network and earn rewards. A portion of the protocol’s transaction fees is distributed to stakers as an incentive.

• Governance: IMX token holders have voting rights on key protocol upgrades and decisions. This decentralised governance model allows token holders to influence the future development of the Immutable X ecosystem.

• Incentives: Users and developers are incentivised to participate in the ecosystem by earning IMX tokens through activities such as trading, building applications, or using the protocol.