Enjin Coin (ENJ)

Enjin is a company that launched its gaming platform Enjin Network.

Since then, the Enjin ecosystem has expanded to include a marketplace and a collection of smart contracts and “smart” wallets to make it easier to own and manage virtual goods backed by real value.

Individuals and companies can use Enjin’s range of products to easily create custom tokens and digital assets (ex: in-game products, NFTs) that they can trade, distribute, and manage within and outside Enjin’s network.

What is Enjin Coin (ENJ)?

Enjin Coin (ENJ) is a digital token that lives on its own purpose-built blockchain, the Enjin Blockchain.

It was created by Enjin, a company founded in 2009 that initially focused on providing a community gaming platform.

Over time, Enjin evolved, shutting down its website builder in 2023 to dedicate itself to bringing blockchain technology to the gaming industry and providing a platform where users can create and manage digital assets.

ENJ is the fuel that powers the Enjin ecosystem. It’s used to create and trade non-fungible tokens (NFTs), which are unique digital assets that represent ownership of in-game items, digital art, and other collectibles.

Think of it like this: ENJ is the currency you use to buy, sell, and trade valuable items within a video game or virtual world

How does Enjin work?

Enjin Coin was initially based on the ERC-20 token standard, meaning it was compatible with other tokens and applications on the Ethereum blockchain.

However, in September 2023, ENJ migrated to its own blockchain, the Enjin Blockchain. This blockchain is specifically designed for NFTs, offering features like scalability and low transaction fees.

Here’s a simplified explanation of how ENJ works:

  1. Minting NFTs: Imagine a blacksmith forging a powerful sword. In the Enjin ecosystem, game developers act as the blacksmiths, using ENJ to create in-game items as NFTs. Each NFT has a certain amount of ENJ locked inside it, giving it real-world value.
  2. Trading NFTs: Now, players can buy, sell, and trade these unique swords (NFTs) on the Enjin Marketplace or other platforms. JumpNet, a scaling solution within the Enjin ecosystem, allows for these transactions to occur with minimal fees (gas-free).
  3. Melting NFTs: If a player decides they no longer need the sword, they can “melt” it. This is like the sword being broken down back into its raw materials (ENJ). The player receives the original ENJ that was used to create the NFT. This ensures that NFTs always have a base value tied to ENJ.

To manage their ENJ and NFTs, users can utilize the Enjin Wallet, a secure mobile app that also supports other cryptocurrencies like Bitcoin and Ethereum.

What Makes Enjin Coin Unique?

Enjin Coin stands out from other cryptocurrencies because it’s specifically designed for gaming and digital ownership.

Here are some of its key features:

  • Scalability: Enjin can handle a large number of transactions, making it suitable for games with millions of players.
  • Affordability: Transaction fees on the Enjin platform are low, even for games that require many transactions per minute. JumpNet further enhances affordability by enabling gas-free transactions.
  • Security: Enjin uses blockchain technology to ensure the authenticity and security of NFTs.
  • Interoperability: Enjin NFTs can be used across different games and platforms. This means you could use a sword you earned in one game in another game that supports Enjin.
  • Scarcity: As more ENJ is locked into NFTs, the circulating supply of the token decreases. This scarcity, coupled with increasing demand, could potentially drive up the price of ENJ.

Use Cases for Enjin Coin

Enjin Coin has a variety of use cases beyond just buying and selling in-game items.

Here are a few examples:

  • Gaming: ENJ is primarily used to create and trade in-game items, rewards, and currencies. It allows developers to create unique, verifiable items that players can truly own and trade. This can lead to new revenue streams for developers and more engaging experiences for players.
  • Digital Art and Collectibles: Artists can use ENJ to create and sell unique digital art and collectibles as NFTs. This gives artists more control over their work and allows them to connect directly with their audience.
  • Virtual Real Estate: ENJ can be used to buy and sell virtual land in metaverses and online worlds. This opens up new possibilities for virtual ownership and investment in digital spaces.
  • Loyalty Programs: Businesses can use ENJ to create blockchain-based loyalty programs that reward customers with NFTs. These NFTs could represent discounts, exclusive access, or other perks, providing a more engaging and secure way to reward customer loyalty.

Enjin also has a cross-chain NFT protocol called Efinity. Built on Polkadot, Efinity aims to make NFTs more accessible and scalable, further expanding the potential of the Enjin ecosystem.

Enjin Coin Partnerships

Enjin has partnered with several major companies to bring blockchain technology to a wider audience.

Some of their notable partnerships include:

  • Microsoft: Microsoft used Enjin to create a rewards program called Azure Heroes, where users earn NFTs for completing challenges and contributing to the Azure community.
  • Samsung: Enjin partnered with Samsung to integrate the Enjin Wallet with Samsung’s Blockchain Keystore, allowing users to securely store and manage their ENJ and other digital assets on their Samsung devices.
  • Atari: Enjin collaborated with Atari to bring the iconic gaming brand into the Enjin ecosystem, creating new opportunities for blockchain-based gaming experiences and digital collectibles.

Team background

Enjin was founded as a gaming community platform in 2009 by software project manager Maxim Blagov and blockchain enthusiast Witek Radomski.

Radomski not only pushed for Enjin to accept bitcoins as payment before it was cool, but he also authored the ERC-1155 token standard used to mint fungible and non-fungible tokens.

Blagov is currently Enjin’s CEO and Creative Director while Radomski is the company’s CTO. Caleb Applegate, a strategic advisor, is the COO while angel investor and CFA Oscar Franklin Tan are the CFO and Chief Legal Officer.

What is the ENJ token?

Enjin Coin (ENJ) is the native cryptocurrency of the Enjin ecosystem, designed to facilitate the creation, management, and trading of virtual goods and non-fungible tokens (NFTs) within gaming and other digital environments.

Initially launched as an ERC-20 token on the Ethereum blockchain in 2018, ENJ transitioned to the Enjin Blockchain in September 2023.

Key Features of ENJ:

  • Backing Digital Assets: Developers can mint NFTs and other digital assets by infusing them with ENJ, providing inherent value and liquidity. This process reduces the circulating supply of ENJ, as the tokens are locked within the assets until they are “melted” back into ENJ.
  • Transaction Utility: ENJ is used to pay for transaction fees on the Enjin Blockchain, facilitating seamless operations within the network.
  • Staking and Governance: Holders can stake ENJ to participate in network governance, contributing to the platform’s decentralization and security.

Token Metrics:

  • Holder Addresses: Approximately 158,379 unique addresses.
  • Circulating Supply: Approximately 1.8 billion ENJ tokens.
  • Total Supply: Approximately 1.865 billion ENJ tokens.

ENJ is arguably deflationary because as new NFT and game tokens/products are created on the Enjin platform, ENJ will be removed from circulation.