Immutable: A Pioneer of Web3 Gaming

Key insights

7 takeaways

01
The report states that the gaming industry generated at least $280 billion in 2023, which it says is larger than movies and music combined at about $94 billion per year.See it on page 3
02
The report says Immutable claims its X layer-2 throughput is 600 times higher than Ethereum's, which game developers find critical for smooth gameplay.See it on page 11
03
The authors state that Immutable's internal data shows over 300 games across various genres have been on the platform, counting games that have signed at one point in time.See it on page 22
04
Immutable's Open Orderbook charges a 2% fee on all secondary trades, payable in IMX tokens, according to the report.See it on page 27
05
Citing Immutable's internal analysis, the report says more than half of all trades in its orderbook are created on one marketplace and filled on another.See it on page 19
06
The report states that as of May 2024, 75% of IMX tokens had been unlocked, with the total supply capped at 2 billion tokens.See it on page 28
07
The report cites Immutable's own data that Gods Unchained players play 24% more per day, and that the company reports players were more engaged when incentivized with real ownership of in-game assets.See it on page 9

Summary

This is a June 2024 research report by Arrington Capital on Immutable, a company providing infrastructure and middleware for Web3 games. The report covers the gaming industry's evolution, the benefits it attributes to Web3 for players and developers, Immutable's products (Immutable X, Immutable zkEVM, Passport, Open Orderbook, Checkout, and gaming SDKs), competitors, several ecosystem games, and the IMX token. The authors state they are not unbiased, as Arrington Capital has invested in Immutable and in games built on its platform.

The report states that the gaming industry generated at least $280 billion in 2023, larger than movies and music combined at about $94 billion per year. It describes Immutable X as an Ethereum layer-2 that the company says has throughput 600 times higher than Ethereum, and Immutable zkEVM, built with Polygon, which offers full Type-1 EVM equivalence. The report also states that over 300 games across various genres have been on Immutable, based on Immutable's internal data.

On the token, the report states that IMX has a total supply capped at 2 billion tokens, that 75% had unlocked as of May 2024, and that twenty percent of protocol fees are automatically converted to IMX and allocated to the staking rewards pool. It also cites Gods Unchained players playing 24% more per day than the average play time for the top 25% of mobile games, according to Immutable's own data.