Last updated: 21 October 2022
<aside> ☝ IMX was built to reward users and accelerate the growth of Immutable X to become the #1 ecosystem for NFTs. That’s why more than 50% of the $IMX supply is reserved for ecosystem development.
The ecosystem development fund rewards all the activity and all the ecosystem participants needed to make Immutable X successful such as developers, traders and liquidity providers. The ecosystem development fund supply will only be used if there are sufficiently good growth opportunities, making the whitepaper circulating supply forecast an upper bound on circulating supply.
Opportunities are assessed against a number of factors, many of which we can’t share because of the sensitive and competitive nature of deals. Examples of the factors include:
Our strategy for supply allocation is to use data to optimise incentives over time. Currently, we are in an experimentation phase: testing different types of incentives and measuring their impact. As our confidence increases, we expect to narrow in on the most impactful types on incentives. This will likely take one to two years due to the time it takes to build high-quality games.
Tokens can be in one of three states:
Tokens are awaiting cliff if they would have been unlocked if it were not for the cliff. For example, if a party has been allocated 10,000 tokens with a 2 year unlock length (defined below), a 1-year cliff, and a 30 day unlock frequency, whilst there will be no tokens unlocked after 1 month, they would have unlocked 1/24 if there was no cliff. Thus 1/24 are “awaiting cliff.” After 2 months, no tokens are unlocked, but 2/24 are now “awaiting cliff”.