Immutable’s Tokenomics and Staking Principles

Designing a sustainable staking mechanism

  1. Utility staking — If staking is required for the product functioning, then it is likely sustainable because without staking, there would be no utility for the token.
  2. Inflationary staking — If staking results in new issuances increasing faster than the value created (if there’s any value created at all), then one must ask what is the sustainability of rewards long-term
  3. Aligned staking — If staking adds indirect value (i.e. not strictly required to maintain protocol functionality), but rewards are funded from protocol fees (which in turn are generated from activity on the protocol), then the incentives of stakers and the protocol are aligned. So long as the protocol can fund its operations, this method of staking is sustainable.
  1. Activity on the protocol generates staking rewards
  2. Greater staking rewards increases the utility of IMX
  3. Greater utility of IMX results in more games, marketplaces, and traders
  4. More games, marketplaces, and traders create more trading volume

Supplementing staking rewards to bootstrap adoption

Stakeable Token Supply

Minimum Guaranteed Rewards Rate

Digital Worlds NFTS & Immutable

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