What is the issuance and circulation of Immutable (IMX) coins?

Immutable X (IMX) coins were initially issued through an ICO in November 2021 and a TGE in March 2022, with a total supply of 2 billion tokens and a current circulating supply of approximately 750 million.

Dec 10, 2024 at 05:12 pm

What is the Issuance and Circulation of Immutable (IMX) Coins?

Introduction:

Immutable X (IMX) is a Layer-2 scaling solution designed specifically for the trading and minting of non-fungible tokens (NFTs) on the Ethereum blockchain. IMX aims to address the scalability, cost, and environmental concerns associated with NFT transactions, enabling faster, cheaper, and more eco-friendly operations.

Issuance of IMX Coins:

1. Initial Coin Offering (ICO): In November 2021, Immutable raised $60 million in an ICO, selling 266,666,666 IMX tokens at a price of $0.09 per token. This ICO contributed towards the development and launch of the Immutable X platform.
2. Token Generation Event (TGE): The TGE occurred on March 31st, 2022, distributing 427,555,555 IMX tokens to ICO participants and early investors. The remaining IMX tokens were allocated to the team, ecosystem growth, and future development.

Circulation of IMX Coins:

1. Total Supply: The maximum supply of IMX coins is capped at 2 billion. This finite supply helps control inflation and maintain the value of IMX tokens over time.
2. Initial Circulating Supply: At the time of the TGE, the circulating supply of IMX tokens was approximately 575 million. This circulating supply has gradually increased over time as more IMX tokens are released from vesting schedules.
3. Current Circulating Supply: As of November 2023, the current circulating supply of IMX tokens is approximately 750 million. This figure represents roughly 37.5% of the total IMX supply.
4. Vesting Schedules: A significant portion of the total IMX supply is subject to vesting schedules, ensuring that tokens are gradually released over time. These schedules help align the interests of early investors and the team with the long-term growth of the Immutable X ecosystem.
5. Unlock and Release: Vested IMX tokens are unlocked and released according to predetermined schedules, providing a gradual increase in the circulating supply. This release mechanism helps manage the inflation rate and stabilizes the token's price.
6. Token Distribution: The distribution of IMX tokens is divided among different groups, including the team, early investors, ecosystem grants, and community rewards. This distribution model aims to ensure a fair and balanced allocation of tokens.

7. Token Usage: IMX tokens play a crucial role within the Immutable X ecosystem and have several use cases, including:

   a. Transaction Fees: IMX tokens are used to pay for gas fees associated with NFT transactions on Immutable X. This creates a demand for IMX tokens and supports the ecosystem's sustainability.

   b. Staking: IMX token holders can stake their tokens to earn rewards and contribute to the security of the network. Stakers help validate transactions and maintain the integrity of the Immutable X platform.

   c. Governance: In the future, IMX token holders may be granted governance rights, allowing them to participate in decision-making and shape the direction of the Immutable X ecosystem.