Immutable X is the first Layer-2 scaling solution for NFTs on Ethereum, with instant trade confirmation, massive scalability. They aim to solve one of the primary economic issues facing Non-Fungible Token (NFT): the high cost of minting and transacting on the Ethereum network.^[1][2][3]

Company

Founded by James Ferguson and Robbie Ferguson in June 2018, which has a team of 50 to 200 persons and is currently located in Surry Hills , Sydney, NSW 2010, Australia

Immutable (formerly Fuel Games) is an Australian game team that runs the NFT trading card game Gods Unchained, and it is powering the Immutable X platform. Gods Unchained is an important NFT game, as it is built by a 40-person development team headed by Chris Clay, the former director of Magic the Gathering: Arena. Gods Unchained is a “play to earn” game, where players can earn collectibles over time, said Immutable founder Robbie Ferguson in an interview with GamesBeat. And they can make money by trading those collectibles, including the unique NFTs which can be proven by the Blockchain, the secure digital ledger technology, to not be copied.

In 2020, Immutable found the solution on the Crypto frontier with StarkWare, which tapped the benefit of using the Ethereum cryptocurrency and its security without incurring huge fees. Immutable X is built on top of Starkware’s “Layer 2 scaling” technology. The bottom line is that users don’t have to trust in Immutable lasting permanently in order to keep owning their NFTs. They can just trust in Ethereum.^[4]

“At the end of the day, this security is the whole point,” Ferguson said. “Otherwise, you might as well just make a new centralized database.

Ferguson said:

“What our company has become focused on is to scale these games and these applications in a way that is best for users, and ultimately, still decentralized, while still being super easy for mainstream applications to use. That’s why we decided to build Immutable X. We spent a very long time searching for a scaling solution. We’ve got to make the proposition of NFT ownership available to everyone.”

Funding

Immutable raised $15 million in Series A round led by Naspers Ventures, part of Naspers, a global internet group and one of the largest technology investors in the world, and Galaxy Digital EOS VC Fund, a $325 million ecosystem development fund run by blockchain-focused merchant bank Galaxy Digital. Apex Capital Partners also participated in the round.

Overview

Immutable X is a layer 2 protocol built on Ethereum to facilitate scaling solutions for non-fungible token (NFTs). The protocol boasts many advantages for both users of the NFT marketplace (Immutable X Exchange), plus artists selling their NFTs. Moreover, as the project doesn’t use any tokens, the protocol cannot be subject to a 51% attack or ransom attack.^[5]

Immutable X is an open-source protocol that allows anyone to develop their own decentralized marketplace, blockchain-based games, and various other decentralized applications facilitating instant trades with zero gas fees. We will dive deeper into how this works further in the article. However, first, we will recap what non-fungible tokens (NFTs) are and their various use cases.

It seeks to solve the key challenges facing the Ethereum NFT ecosystem such as scaling, UX, fees, and environmental impact. Immutable X has instant trade confirmation, massive scalability (9,000 TPS+), and zero gas fees - without compromising user custody. Immutable X is also ensuring any NFT activity on the protocol is completely carbon neutral by purchasing carbon credits to offset gas consumed on Ethereum.

“With today’s Immutable X Alpha release, any NFT can now be traded, earned, shared, gamed and collected completely gas-free on Ethereum,” said Robbie Ferguson, Immutable Co-Founder.

Before Immutable X, developers had few alternatives. Move to another blockchain that provides more scalability, but a fraction of Ethereum’s ecosystem and security, or use a sidechain. Neither are viable options for developers that want to prioritize revenue security and self-custody. As the first layer-2 scaling solution for NFTs on Ethereum, Immutable X solves all three issues of the NFT scaling trilemma: accessibility, scalability without compromising user custody and true decentralization.

The team has also been able to work closely with the incredibly talented StarkWare team, who have consistently pushed the boundaries of proving capability. StarkEx powered Immutable X minting on Ethereum Mainnet.^[6][7]

How It Works?

Immutable X offers two different layer-2 solutions for users to choose from when transacting. They are ZK Rollups and Validium. Choosing between them is what Immutable calls the process of Volition. Currently, only ZK rollups are available, but Validium is expected soon.^[8]

ZK Rollups

ZK-Rollups is a layer 2 option that bundles together hundreds of transactions into one single transaction. This single transaction can then be deconstructed by smart contracts to verify each transaction individually. Using a "zero-knowledge proof" method for publicly recording transactions on the Ethereum blockchain, ZK-Rollups reduces the amount of storage and computational power required to validate blocks, as zero knowledge of the complete transaction data is required for a transaction to be verified. Moreover, ZK-Rollups allows for limitless scalability and instant transaction confirmations without compromising the security of assets.

The Immutable X engine facilitates 600x more transactions per second (TPS) than other Ethereum-based NFT marketplaces. Also, transactions on Immutable X are instant. This means no interruptions to gameplay or interference with the user experience. Users of Immutable X maintain custody of their assets and can place buy orders for NFTs based on specific criteria and functionality.^[9]

Validium

Validium is very similar to ZK rollups, however, the resulting proof is not posted back on layer 1 Ethereum. Although this increases speeds further, it requires a trusted group to hold authority. That trusted group would be significant entities pertaining to the industry of the service.

Volition

Features

Immutable X offers gas-free and instant trades

For any marketplace, game and decentralized app, Immutable X provides gas-free trades (gasless minting, trading, earning, collecting), instant NFT trades (up to 9,000+ transactions per second) driving scalability, without compromising user custody.

Immutable X enables attractive, dynamic trading UX for users

Within an uninhibited developer-friendly playground, developers have the ability to build more attractive features for their users which are cost-prohibitive on Ethereum today e.g. trading, crafting, free drops, unique rewards, fusing, voting, auctions.

Immutable X provides self-custody for NFTs

Users will remain in control of their NFTs, tied back to the security and interoperability of the main Ethereum blockchain so NFTs won’t be locked into walled gardens or restrictive ecosystems.

“We believe users should be able to trade wherever they want to trade, including marketplaces like OpenSea or Mintable,” Ferguson added.

Immutable X is a true Layer-2 secured by Ethereum

Immutable does not compromise on decentralization or security.

“The security of this future world should not be owned by large corporations, venture capitalists, a government or one individual. It has to live on something truly decentralized, owned by the world. That's why we’ve chosen to scale Ethereum, rather than a centralized blockchain,” Ferguson added.

NFTs on Immutable X are carbon neutral

Any NFT, marketplace, or game built on Immutable X is 100% carbon neutral.

Partnerships

Notable NFT projects working with Immutable X include:

1. Gods Unchained (trading card game)
2. OpenSea (NFT marketplace)
3. Mintable (NFT marketplace)
4. RTFKT studios (fashion NFT artists)
5. HighRise (social sandbox)
6. TokenTrove (collectibles marketplace)
7. SuperfarmDAO (DeFi NFT farm)
8. Epics.GG (collectibles)
9. Illuvium (auto battler RPG)
10. Lucid Sight (MLB Champions Baseball, Crypto Space Commander)
11. War Riders (post-apocalyptic MMO)
12. Guild of Guardians (mobile RPG)
13. doublejump.Tokyo Inc / MCH+ (My Crypto Heroes and other blockchain games)
14. Crypto Assault (strategy MMO)^[10]

Immutable X Exchange

Immutable X Exchange aims to be the leading peer-to-peer non-fungible token (NFT) exchange offering zero gas fees. Although technically an NFT marketplace, the project refers to this protocol as its ‘Exchange’. Moreover, with throughput exceeding 9,000 transactions per second (TPS), transactions are finalized near instantly. For gamers, the timing of transactions can be crucial to achieving time-sensitive quests and challenges within games. Immutable X Exchange means gamers can purchase valuable in-game items swiftly, paying no fees, creating new opportunities for decentralized gaming.

For traders or artists, users can set their own trading fees. This falls in line with Immutable X’s decentralized ethos and approach. The exchange doesn’t use a centralized sidechain and can facilitate exchange trades as non-custodial transactions. This means users have ownership of the private keys of their non-fungible tokens (NFTs).

Immutable X Exchange offers the security of the Ethereum mainnet with added scalability features. Moreover, the Exchange protocol supports both the ERC-721 and the ERC-1155 Ethereum NFT token standards. This means that items can be sold through Immutable X as one unit (ERC-721, e.g. a sword) or as multiple units together (ERC-1155, e.g. a suit of armor featuring a helmet, body plate, and defense weapon).

IMX Token

IMX is an ERC-20 utility token designed to reward pro-network behaviors such as trading, liquidity provision, and application development on Immutable X. The token matches incentives between traders, creators, and marketplaces, ensuring that protocol activity benefits all players. Digital Worlds Ltd. NFTS (the "Foundation") has teamed with Immutable to distribute IMX for usage on the Immutable X protocol. The Immutable X protocol and token, which will be maintained by the Foundation, are being developed by Immutable as the exclusive service provider.

Token Utility

IMX is currently used for three main purposes:

• Fees: 20% of Immutable’s protocol fee must be paid in IMX tokens. This fee can either be paid directly in IMX, or Immutable will automatically swap the actual purchase currency (e.g. ETH) for IMX on the open market. This means users do not need to explicitly hold IMX tokens to be able to transact on the protocol. Note that there is no entitlement, allocation or rights to revenue of the Immutable X protocol purely on the basis of ownership of IMX tokens
• Staking: IMX tokens received as part of the fee capture mechanism described in 6.1 will be sent to the “staking rewards pool”. At regular monthly intervals, this pool will be distributed proportionally between all users who are actively staking their IMX tokens on Immutable X. A user’s rewards will be proportional to the amount of IMX they have staked during the month, relative to all other active stakers.
• Decentralized Governance: Token holders can be able to vote on token-related proposals via decentralized governance. Proposals can include topics such as how to allocate token reserves, voting on developer grants, activating daily rewards and changes in token supply

Token Supply And Allocation

There will 2,000,000,000 IMX tokens, provisionally allocated to the following areas

Immutable X Minting NFTs

The Immutable X Mint function allows anyone to create and distribute their tokenized artwork on a large scale. Most non-fungible token (NFT) minting platforms require gas fees for creating the non-fungible token. However, with Immutable X, artists don’t need to pay for gas! Whether you’re an artist minting single or bulk items, Immutable X can facilitate these requests with zero gas costs. This includes support for both ERC-721 and ERC-115 token standards. Referred to as “high-performance minting”, Immutable X is in place to get NFTs to market as quickly as possible.

Immutable X offers a super simple and easy way for anyone to design and sell their non-fungible token (NFT) artwork. Digital assets that have been minted through Immutable X are available to trade on the open market immediately. Moreover, this is achieved with the underlying security of the Ethereum Network.^[11][12]

Immutable X Roadmap

Deus phase 1

• At Deus phase 1, Gods Unchained players have exclusive access to Immutable X with the marketplace open and trading live.
• Gods Unchained users can get in on the ground floor ensuring their Gods Unchained assets are among the first to be minted on Immutable X through the new expansion set card Trail of the Gods. At the time of publishing, 1.45m Trial of the Gods assets had been minted on Immutable X.
• Features live today for Gods Unchained users are: linking wallets, minting and trading Trial of the Gods cards.

Cosmos phase 2

• At Cosmos phase 2 Immutable X will be made available for all other exchanges and dapps closely after. Ferguson confirmed “integration with TokenTrove has begun and we’re integrating other partners as we speak.
• Confirmed feature examples slated at phase 2 include: APIs test environment through to full integration, NFT deposits + withdrawals, Trader sorts + filters and Set trading fees

Metaverse phase 3

• At Metaverse phase 3, Immutable X will be launching significant exchange success, expansion, optimization and scalability features.
• Confirmed feature examples slated at Metverse phase 3 include: Liquidity incentives: fiat support, drops, unique rewards, Frictionless onboarding, Wallet management, Mobile.

Multiverse phase 4

• At Multiverse phase 4, Immutable X will be launching mind-bending developer and trader UX improvements.
• Confirmed feature examples slated at Multiverse phase 4 include: Developer UX: proving platforms, primitives, services. Trader UX: metadata orders, AMMs for NFTs

Utopia phase 5

• At Utopia phase 5 is when crazy-new verticals will be added and where Immutable X has made strides towards a utopia, where the world is more tradable.^[13]

Team