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RE: Illuvium Overworld Closed Beta Review! 😍

in ImmutableX Projectslast year (edited)

IMX

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It's a company powered by Venture Capital that has distributed the tokens as they see fit. Those big categories in the chart basically mean nothing. Ecosystem Development is part of the same group as Project Dev and probably Foundation Reserves as a wallet under the same management. The rest is basically a presale, I mean, it's 0/10 points for that, the worst possible way to handle token distribution.

On top of that, it's an ETH Layers 2. IMX Token is a native ERC20, meaning transactions that are communicated back to layer one create fees twice as high as required directly on ETH to run the same contract or transaction. What usually happens is that the critical transactions are run on IMX only and from time to time there's a "check back with the Mother chain" against ETH main in some pseudo way that creates literally 0 security. The reason why people have been using this way of binding themselves to ETH Main is obviously only to funnel ETH into their crypto payment systems. What I think is most interesting is that parts of your gas fees are getting locked into a staking reward pool, just to add some Ponzi mechanics onto the centralized chain staking rewards system. A lot of smart projects have been using such fees to create a DAO, but who needs a DAO in a centralized project?

All in All, this is a good project and great games on a good sidechain with terrible token distribution. But the token distribution is a dealbreaker because it represents the ownership and these tokens are literally securities.