The Enjin Coin is the centerpiece token of the blockchain software developer, Enjin. Enjin has created a number of use cases for its coin as a way of adding value to NFTs. Above all, Enjin Coin is a way for blockchain games to add intrinsic value to their NFT items.
About Enjin, the platform behind Enjin Coin
To sum up, simply, Enjin is a company that allows developers to create and manage NFTs on Ethereum. Of course, Enjin does a bit more than just that. Indeed, the major value proposition that Enjin provides is that it gives a mechanism to back the value of NFTs.
The major use case for Enjin Coin is in blockchain games. Using Enjin, developers can assign value to the in-game items they create. To explain, this is where the Enjin Coin comes into play.
Firstly, developers buy Enjin Coin. Next, they create and mint in-game items as NFTs, using ENJ. To explain, when developers mint NFTs, they effectively stake a certain amount of ENJ via the smart contract. As a result, each NFT minted using Enjin has an ENJ value tied to it from the beginning. These NFT items can be in-game currencies, characters, and accessories.
When players get these NFTs they have a few different options. They can, of course, use the items in the game they are playing. They can also trade them to other players, or sell them for ENJ. Significantly, when a player sells an item to redeem ENJ, they have to burn (destroy) the item.
ENJ holders can of course trade the coin on DEXs (decentralized exchanges). Not to mention that there are a couple of platforms where holders can stake Enjin Coin to earn passive income through staking rewards. It’s important to note that Enjin had at one point mentioned an option to stake Enjin Coin to earn rewards in EFI, the token for its Efinity parachain. However, it seems like Enjin has gone in a different direction now that Efinity is live.
The benefits of ENJ
Buying NFTs can be somewhat of a risky endeavor at times. We’ve all heard of the countless projects that have rug-pulled, leaving holders with nothing. Well, Enjin-backed projects don’t carry this risk. That’s because users can sell Enjin NFTs at any time, thereby unstaking the Enjin Coin that was staked to mint the NFT. This means that you never have to worry about the assets that a project offers if they are backed by ENJ.
Fake NFTs are another issue that people face, particularly those newer to the space. So Enjin Coin can also be a way of marking some NFTs as authentic. If there is ENJ stored in an NFT then you can be sure it isn’t a fake, and it means that it can definitely work within the Enjin ecosystem.
The value of NFTs is a contentious issue, as much of an NFT’s value can come down to speculation and can be manipulated. By requiring developers to lock up Enjin Coin in each NFT, it gives that NFT somewhat of an intrinsic value.
The burning mechanism for selling NFTs in the Enjin ecosystem is one of the most interesting things about the way Enjin operates. In essence, the fact that you have to burn an item in order to redeem Enjin Coin means that selling Enjin NFTs for ENJ makes those same items more scarce, and thus, more valuable.
The supply of Enjin Coin is capped at 1 billion. Given that the token backs up the value of NFTs minted through Enjin, its capped supply is another factor helping to shore up NFT values.
Blockchain games using Enjin Coin
Lost Relics – The Top game on the Enjin marketplace
Lost Relics is an action-adventure role-playing game developed on Unity, which uses Enjin to back the value of its in-game assets. The game is both free-to-play and play-to-earn. Lost Relics particularly makes good use of ENJ utility as its gameplay revolves around collecting rare “relics.” The game is by far the most popular project on the Enjin marketplace
9lives Arena is a competitive online role-playing game. This one-on-one PVP (player versus player) game has a number of unique features about it. For one thing, there’s the permadeath feature which gives the game its name. Basically characters that players use in the main, 9Lives Arena only have, well, nine lives. In other words, they don’t simply respawn. There is a chance for players to resurrect their fallen heroes, but they can actually be lost forever!
Another interesting aspect of 9Lives Arena is players’ online/offline companion, Ooogy. Ooogy helps players to gather resources for crafting spells and weapons and works even when the player is offline.
The Six Dragons
The Six Dragons is an open-world, fantasy role-playing game that takes inspiration from major video game titles of the past two decades. Notably, the game has a huge world for players to explore, complete adventures, and battle in.
Players can craft more than 300 items in the game. And of course, players get to own all of their in-game assets. Assets backed by Enjin Coin.
Kingdom Karnage is a turn-based, virtual trading card game. It follows the mold of mega NFT games Splinterlands, Gods Unchained, and Sorare. Players in Kingdom Karnage collect character cards, train them up and combine them as they battle other players and embark on campaigns.
Enjin Coin and Enjin as a whole continue to grow in the blockchain gaming space
Overall, Enjin Coin and the entire Enjin ecosystem is certainly something to look into for anyone invested in blockchain gaming. Between the economics of the Enjin Coin, and the recent launch of its Efinity parachain, Enjin is making a great effort to advance blockchain games and the utility of NFTs in that sector.
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This article is educational material.
As always, make your own research prior to making any kind of investment.