Immutable X is a layer-two scaling solution for Ethereum powered by STARK zero-knowledge rollups. Back in 2018, when it was first envisioned, its primary purpose was to help relieve transaction congestion and skyrocketing gas fees on Ethereum. However, with the advent and boom in the non-fungible token (NFT) market, the platform found an even better use case. At the moment, Immutable X hosts an NFT marketplace that offers improved user experience and gas-free transactions.
The platform's utility token IMX covers three major use cases: staking, governance, and transaction fees. The transactions on the sidechain are approved by a network of validators. Each of those has to lock in a sum of IMX as their stake in the network's security and a pledge to contribute. IMX also acts as voting power when the decisions about the future and present of the protocol are put forward for the community to vote as an on-chain contract. Finally, trading on Immutable X incurs a commission, 20% of which is denominated in IMX.