Enjin (ENJ)

Tokenomics & Utility

Supply and distribution

When Enjin Blockchain launched, its initial allocation was 1.75 billion ENJ. It included 1 billion for migration from the original ERC-20 ENJ, 500 million for Efinity token swaps, and 250 million for early migration and other incentives. Unlike the original ERC-20 token’s fixed supply, native ENJ has ongoing issuance for network rewards. Enjin’s staking documentation describes an annual inflation rate of about 5%, with newly issued coins distributed through its proof-of-stake system. (enjin.io)

ENJ has several connected roles. It pays transaction fees and storage deposits, supports staking and governance, and can be used in marketplace activity. Creators may also infuse ENJ into a digital item. Infusion locks a chosen amount of the coin inside each unit of that item. The holder can later destroy, or “melt,” the item to retrieve its embedded ENJ. Infusion is optional, so the amount attached to one asset may differ from that attached to another. (docs.enjin.io)

This creates two ways to think about an item. It may have a use within a game, such as opening a level or changing a character’s appearance. Separately, it may contain a recorded amount of ENJ. The network can verify that embedded amount; the game developer decides the item’s in-game function. (docs.enjin.io)