Enjin is a protocol on Ethereum that makes it possible to create, list, trade, and store non-fungible tokens (NFTs). Enjin works towards creating a tokenized economy in which investors and developers can create NFT markets backed by virtual goods.
In this article, you’re going to learn more about the tokenomics that revolve around the Enjin protocol. But instead of diving straight into the tokenomics that bound ENJ, let’s have a brief reminder of what Enjin is and what it’s used for.
What Is Enjin?
Imagine owning an in-game item like a weapon skin. Wouldn’t it be wonderful if you could trade or sell it to someone? Or maybe you’re a music producer and want to distribute your music, but dont’ want to deal with the hassle of music publishers and their exorbitant fees. But doing so is impossible within a centralized framework – which can be changed with the help of NFTs.
NFTs introduce decentralized and tokenized virtual economies. An NFT represents a material or immaterial good, product or item on the blockchain, allowing its owner to directly sell it to another person without the use of intermediaries.
Enjin offers an all-in-one solution that allows developers and users to create metaverses and facilitate the transfer and ownership of in-game items. It also enables creating play-to-earn economies, adding utility to NFTs, and buying or selling NFTs within the scopes of a decentralized marketplace.
The Enjin ecosystem is comprised of the Enjin Platform, Enjin Wallet, Enjin Marketplace, Beam, and a number of other smaller platforms. The array of tools offered Enjin make it possible for developers to increase revenue, distribute tokens, gain a competitive edge, and compete in an innovative way.
Enjin lets you collect NFTs that fall under categories such as art, sports, music, real-world items, and collectibles. But above all, Enjin’s biggest use case is gaming. The protocol empowers gamers and game developers through the introduction of tokenized in-game assets that players can own and trade on their own.
Enjin provides the following use cases in the video game industry:
- Raising funds through a crowdfunding model by selling in-game items to players
- Enable players to build and upgrade in-game assets with real-world value
- Bring back trust and loyalty by giving back control to players
- Eliminate revenue ost from gray market trading and selling
- Build game metaverses and enable cross-platform NFT ownership
- Minimize player churn through decentralized ownership
Enjin Tokenomics Explained
Enjin Coin (ENJ) is a cryptocurrency on the Ethereum network based on the ERC-20 protocol. The token is used to back the value behind all on-chain assets on the Enjin network, most importantly NFTs. ENJ is primarily used for buying, selling, and minting NFTs.
The following sections discuss the distribution and use cases of the Enjin token.
Enjin (ENJ) Distribution
The initial Enjin (ENJ) token sale took place in November 2017 during an Initial Coin Offering (ICO) that raised $22.9 million worth of funds. The ICO distributed 40% of the total token supply at a rate of 6000 ENJ for 1 ETH. The team raised more funds in a Series A funding round led by Blockchain.com Ventures. However, the amount raised was not disclosed.
Enjin has an initial token supply of 1 billion tokens. 80% of the tokens were bought by investors (including both crowdsale and private sale) while the remaining 20% are allocated to founders and the team.
ENJ is ranked 93th according to CoinGecko’s cryptocurrency leaderboard as of October 2022. The token is sold at $0.42. Enjin has a market cap of $427 million and a trading volume of $22 million. The circulating supply is the same as the max supply – 1 billion ENJ.
Enjin (ENJ) Use Cases
ENJ plays the role of a currency within its native ecosystem. Users can use ENJ to pay for in-game products and other assets represented in the form of NFTs. Moreover, these assets can be converted back into ENJ through selling.
ENJ is primarily used by developers and users who mint NFTs on the Enjin marketplace. You can think of ENJ the same way as you see SOL or ETH in the context of trading NFTs. Enjin NFTs may increase in value and therefore be traded for more ENJ coins.
You can also say that ENJ has a speculative purpose, in the sense that it represents the size and power of Enjin’s NFT ecosystem. But nevertheless, it is primarily a utility token for NFTs that facilitate trust, scarcity, tangibility, authenticity, value, and anti-inflation.
ENJ also works hand in hand with the Efinity Token (EFI). Efinity is a next-generation cross-chain protocol that brings NFTs to the Polkadot blockchain network.
You can use ENJ to mint, buy, sell, collect, upgrade, craft, and build all kinds of NFTs. You can later on convert your NFTs back into ENJ by selling them. ENJ is the de-facto utility token on the Enjin protocol that allows users and developers to monetize their assets through tokenization and NFTs.
Enjin is an NFT and metaverse protocol that enables investors to participate in the growing space of digital collectibles. Enjin allows users to store, mint, collect, buy, and sell NFTs. And for developers, Enjin helps them create digital ecosystems that contain tokenized assets representable on the blockchain.
Enjin Coin (ENJ) is an ERC-20 token on Ethereum that provides utility to those utilizing the Enjin protocol. It is a currency that investors can use to mint and collect NFTs. You can also sell NFTs for Enjin Coin. Minting blockchain assets with ENJ allows you to infuse NFTs with a reserve value while simultaneously upholding their transparency and scarcity.
ENJ also contains speculative value as it can represent the size and popularity of Enjin’s NFT ecosystem. The token has a maximum and circulating token supply of 1 billion tokens. You can buy and sell ENJ on Binance, Coinbase, Kucoin, Bithumb, Huobi, FTX, Kraken, and many other exchanges.
To learn more about Enjin, I suggest visiting the following links: