IMX is an ERC-20 utility token built for the purposes of rewarding pro-network activities on Immutable X, such as trading, liquidity provision and building applications. The token aligns incentives between traders, creators and marketplaces so that all participants benefit from protocol activity. Immutable has partnered with the token issuer, Digital Worlds Ltd. NFTS (the Foundation), to distribute IMX for use on the Immutable X protocol. Immutable is the exclusive service provider developing the Immutable X protocol and token, which will be managed by the Foundation. No director nor employee of Immutable, nor Foundation directors will be directly receiving any tokens as compensation for their services or their involvement in the project.

6.1 Token Utility There are currently three core uses for IMX: 6.1.1 Fees 20% of Immutables 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.

6.1.2 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 users rewards will be proportional to the amount of IMX they have staked during the month, relative to all other active stakers. Staking will be activated a couple of months after the token launch. For your IMX to be considered staked, you must: Be holding IMX on L1 or L2 Have voted on a governance proposal in the last 30 days, and Either: 8 Be holding an NFT on Immutable X; or Have completed trade in the last 30 days.

As rewards are distributed on L2, users are required to have an L2 wallet linked with their L1 wallet to be eligible to receive staking rewards. Note that staking reward terms may be subject to change via protocol governance or a similar process. Staking will begin once it has been added to the protocol. 6.1.3 Decentralized Governance Token holders will be able to vote on token-related proposals via decentralized governance. Proposals will include topics such as how to allocate token reserves, voting on developer grants, activating daily rewards and changes in token supply. Other proposal categories may be added via the appropriate decentralized governance processes. Our goal is to continuously add to the utility and decentralization of the Token through user voting.