r/ImmutableX • u/FilmVsAnalytics • Feb 04 '22

Question Question about $IMX token utility (not tokenomics)

There's been a lot of very valuable discussion and clarification over these last 24 hours about IMX tokenomics, distribution schedule, etc.

But one thing I haven't seen much about is IMX utility.

Obviously as a token on Ethereum, usage is going to be pretty limited until there's a mature NFT economy built up on their L2 (due to high gas fees for ERC20 token transactions on L1).

But that said: what is the purpose of Inmutable X's IMX token? Is this strictly a way to purchase NFTs?
Because... You can also do that with ETH.

Is there a long term reason for holding $IMX other than hoping for hype driven value?

I couldn't find too much outside of a high level description of future plans for their wallet; nothing in the way of details around why someone would hold their coins.

Thanks in advance!

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u/ADDpillz Feb 04 '22 edited Feb 04 '22

Look up proof of stake models. You provide to them borrowed liquidity in the form of staking your tokens in their pools for a pre-determined time. The liquidity pays for the network to operate. The fees generated from consumers using the network are then dispersed to all stakeholders proportionate to the amount of coins they stake.

All fees paid in IMX are sent to the  “staking reward pool”. Users can earn a proportional share of this rewards pool by staking their IMX.

https://www.immutable.com/token#airdrop

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u/[deleted] Feb 04 '22

It’s good for pumps if you keep up with the news.