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April 5, 2021

Enjin Coin: The EFI Magnet

Enjin Coin: The EFI Magnet
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Efinity will supercharge the utility of Enjin Coin (ENJ) by incentivizing minting and providing staking rewards.

Innovation is an upwards spiral, and in the end the user always wins.

We are building Efinity to change the general public’s fundamental perception of value.

As we stand on the precipice of a new digital horizon, this new world of tangible digital value requires a new type of internet.

Efinity: The Internet of Value

There’s no doubt in our minds that Efinity Token (EFI) is the most exciting unlisted cryptocurrency. For Enjin Coin (ENJ) holders who will earn EFI through staking and minting, this is amazing.

EFI’s utility is comparable to Ethereum because it is used to pay transaction fees on the Efinity network. 

However, unlike ETH:

  • EFI is deflationary with a supply that’s fixed at 2 billion.
  • EFI has governance capabilities that can be used to easily upgrade the Efinity Network without causing a hard fork.
  • EFI has treasury capabilities that allow the Efinity community to direct innovation on the network.
  • EFI transaction fees are used to pay Enjin Coin stakers instead of miners.

EFI is destined to be the most widely used currency on Efinity, which will serve as the bridge that connects all blockchains, benefitting NFTs and fungible tokens (ERC-20) and coins alike.

As a user, if you want to move your cryptocurrencies and NFTs from one chain to another, Efinity is the bridge you’ll cross, opening you up to a cross-chain world of unbounded liquidity.

Efinity’s bridges are based on the open-source Snowfork infrastructure, so anyone can use this code to create bridges to any network—and the Efinity community can reward them via treasury grants enabled by the EFI governance model.

For a network to claim this title, it must meet the following criteria:

  • Support cryptocurrencies
  • Support NFTs
  • Support DeFi smart contracts
  • Be affordable
  • Be open and decentralized

Efinity is endowed with all of these properties, but also has a set of powerful, unique features that make it even more worthy of this title:

  • Permanent upgradability (via EFI governance)
  • Self-governed development (via EFI treasury)
  • Perpetual cryptocurrency liquidity (via Efinity Swap)
  • Perpetual NFT liquidity (via marketplace price discovery)
  • Cross-chain interoperability (via Snowfork bridges)
  • Easy on-boarding of new users (via Discrete Accounts and Fuel Tanks)

While EFI is set to become the currency of Efinity, ENJ is its master key—it is quite literally the Efinity Founders Token.

Enjin Coin: The Ultimate Founders Token

Efinity could never have existed without Enjin Coin.

Based on the current distribution and cost of acquisition, it’s becoming increasingly difficult for new entrants into the ENJ market to surpass the holdings of those who came before. That’s why, by and large, the ENJ leaderboard is populated with the founders of Efinity.

To help kickstart Efinity and propel it into a thriving network, we hosted a private sale of 15% of the EFI supply, supported by well-established brands like Crypto.com Capital, Hashed, DFG Group, Blockchain.com Ventures, BlockTower, and more. 

But ENJ holders and NFT creators truly form the backbone of the network.

A unique store of value, ENJ is used to mint NFTs on the Efinity network. This infused ENJ will be automatically staked and generate passive income in the form of EFI.

Gold was the only other significant store of value that was used as a reserve standard, but that practice was abandoned half a century ago.

Unlike gold, the supply of ENJ is fixed and will be taken off the market as it’s locked inside the cryptocurrencies and NFTs minted on Efinity.

From a long-term viewpoint, gold is also inflationary. One can only imagine how much gold will be mined from the 13 billion trillion tons of Earth’s mass, let alone the asteroids and planets in our solar system and beyond. As we look to the future, it’s safe to say very few technologists want to pass gold down to their great grandchildren.

This alone sets Enjin Coin apart as a far superior store of value.

A Magnet of Value for Efinity Founders

Enjin Coin has grown to be more than just a store of value.

It is now a magnet, held by those who made it possible to build Efinity—and who deserve to be rewarded.

The tokenomics of EFI are geared toward growth, designed to benefit Efinity founders who earn EFI by staking ENJ on the network.

Users of Efinity will pay EFI for transaction fees, marketplace commissions, bridging tolls, and smart contract charges. EFI is then automatically delegated to reward ENJ stakers, creating perpetual income for Efinity founders.

As more users flock to the Efinity Network or simply use Efinity to move their cryptocurrencies and NFTs from one blockchain to another, the demand for EFI will increase.

Meanwhile, the supply of EFI is designed to be locked up by those who wish to help govern the network.

This decentralized governance model is crucial, as crowdsourcing the wisdom of the community and empowering them to reward network activity and development will help chart the best course for the network’s future.

This will provide unfathomable value to ENJ stakers who receive a constant stream of Efinity Tokens, while EFI simultaneously grows in importance to the blockchain community as a whole.

Beyond its purpose for transaction fees on the network, EFI was created so those present at the inception of Efinity would see a constant stream of rewards on its journey to the stars.

We have already set aside 15% of the EFI supply (300 million tokens) to reward the staking of ENJ, which will be distributed over a period of 5 years.

Over time, the success of Efinity will provide untold value to the world, and that’s when things will get truly interesting for the people who were here to help create it.

Enjin Coin: The EFI Magnet
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