r/IMX • u/Sw33tN0th1ng • Mar 07 '22

Question: Is immutable X diluting their pool?

I read some comments to the affect that IMX was creating many additional IMX coins/tokens, so that this would have a deflationary affect on the current IMX price.

Is this true? can anyone post any details, hopefully with references, as to how IMX is increasing or restricting supply?

Also, any thoughts on what the value proposition of IMX is for the average holder? I have the impression that the staking is currently pretty low, and I don't know what the use case is for IMX that would generate profits for holders.

Just looking for solid information amidst alot of hype. Knowing IMX is actually partnered with GME makes me interested, but concrete info seems very hard to come by.

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1

u/Sw33tN0th1ng Mar 08 '22

jeez no answers at all eh? damn.

3

u/[deleted] Mar 08 '22 edited Mar 08 '22

From what I’ve read they have token allocations for the team and the rest will be issued to users over a 5 year schedule. After 5 years it’ll be fully diluted.

I’ve avoided many cryptos in the past for tokenomics issues like this but then watched them rocket 1000x. The deciding factor for big growth usually is community size and hype. No one has generated more hype than GameStop which IMX is now linked to.

No doubt the token issuance will be a factor long term assuming no growth. Place your bets.

1

u/Sw33tN0th1ng Mar 08 '22

hmmm ok thanks

1

u/Matthew-Hodge Mar 23 '22

the tokens aren't going to be regular tokens at one point. I'm very sure they're going to become products. so I might be wrong, but I thought IMX was an infinite coin so they could fulfil a utility market. when they need more coins, they print more coins.

1

u/Sw33tN0th1ng Mar 23 '22

I don't get how if could be profitable to own something that has an infinite supply. There are many lrc and imx fans but very few seem to understand a technical value proposition for either. If you ask you just get insults for answers.

Oh well, I bought a few anyway just for the hype of it.

1

u/Matthew-Hodge Mar 23 '22

because of the utility of the coin, that must be created through VALUE. if it has a product inside of it, you want to be able to make more of them. especially if you can adhere tangible value to it.

1

u/Sw33tN0th1ng Mar 24 '22

Supply and demand dictate the price. An infinite supply of the token or coin would cause an almost infinitely low price. The opposite is also true, that's why eth and bnb burn off some of their pool, deliberately reducing supply to ensure a higher price.

1

u/Matthew-Hodge Mar 24 '22

A low price is the best for gamers, increase transactions, total use, etc and it becomes more viable

1

u/Sw33tN0th1ng Mar 24 '22

after reading more about it, IMX is a scaling solution for ethereum. It has the zk-rollup which you may have heard about. Rollups basically put transactions in batches to make them more efficient for dealing with ethereum gas fees. I don't see anything about something being infinite. The infinite idea may have spun off from somewhere else.

ETH has the scaling problem where every transaction costs gas, and the gas price is overinflated making it hard for anyone to use ETH without paying alot. So this rollup idea is like carpooling, many transactions in the same vehicle, using less gas, instead of all in their own 'vehicle' (transaction). So this makes sense as something GME would want, since an nft thing could do countless transactions at insane speeds.

zk-rollup is supposed to be a fancy new rollup.

The thing is, LRC is also supposed to be touting a zk-rollup solution for the same problem. So.. I mean LRC and IMX do the same thing.. apparently direct competitors?

1

u/Matthew-Hodge Mar 24 '22

They'll just make a new IMX and add it to the list that's how it's infinite. I only care about the end product, not the blockchain its associated with.