GM PRO DOers! 😎
Part 3 of our L2 series is here. 🥳
Today, we explore $IMX (Immutable’s token) and $MATIC (Polygon’s token, soon to be $POL).
Two Layer 2 tokens that have been around much longer than $OP And $ARB, which we analyzed last week.
This PRO report is a banger. Why? 🤔
Because you’re about to learn about a whole new business model for Layer 2s. 👀
Optimism, Arbiturm and Base are very similar. We talked about this last week.
However, what Immutable is doing is unlike anything else. The economics and business model they have chosen for their L2 could be massive. 🤯
Polygon, on the other hand is transitioning from its own PoS (proof of stake) chain to an L2 (a first in the category). With this transition, they’re also updating their token and its tokenomics from $MATIC to $POL.
Will this be a gamechanger? 🤷
All of this and more will be covered in today's report. LFGGGG 🚀
Economics of Polygon and Immutable
The economics of Polygon and Immutable are very different from the rest of the L2s.
Polygon POS (in its current form) is extremely unprofitable, since it’s not an actual L2 yet. You might remember this Polygon Profit chart from our last report…
However, by the end of Q1 2024, Polygon hopes to transition from a POS network into a proper L2 on Ethereum and thus remove a large part of these expenses.
Once it transitions, Polygon economics should look essentially the same as Optimism and Arbitrum.
Immutable on the other hand has been mildly profitable for a while, but with the spike in gas fees on the Ethereum L1 since March, its revenues were no longer able to keep up. 😨
So how does that make sense? If L2s are simply a reseller of Ethereum blockspace, how could Immutable not manage to be profitable like Optimism and Arbitrum have?
Well, that’s because Immutable has completely rethought the L2 economics and business model.
Immutable isn’t a reseller of Ethereum blockspace. In fact, they don't charge gas fees on their chain at all. 😲
Instead, Immutable pays the Ethereum fees themselves so they can abstract away the whole “gas fees” part of blockchains from their users.
Yet, Immutable has still found a way to generate almost $9 Million in revenue since launching in 2021. 🚀
You might be wondering, how is that possible?
👉 By doing things differently.
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