What is Efinity? Everything you need to know about EFI Token

The thirst for a modern mainstream and developer-friendly NFT experience increases every second. Since the fast-growing development of blockchain technology, NFTs incrementally appeals to many people and definitely, in the future, it will be a thriving market that we should pay attention to. 

Today, let's read about one of the next generation of blockchain utilized for NFTs called Efinity!

What is Efinity?

Efinity is developed by Enjin - An ecosystem enabling consumers and developers to purchase, sell and distribute NFT items, founded in 2009 with a network of over 20M gamers worldwided. 

Efinity is a parachain for NFTs that builds on the Polkadot Relay Chain. Because Efinity is also a blockchain, it has independent economic, framework, data and state. 

For those who are new to Polkadot, I highly recommend reading this article below before jumping into the Efinity ecosystem. 

In short, Polkadot is a relay chain which is responsible for the network's shared security and connecting validates to Parachains - a sovereign blockchains that use the relay chain's computing resources

Efinity’s collator nodes are responsible for processing transactions on the Efinity parachain and the network pays out EFI (its native token) from Collator Pool to them. 

How the Efinity blockchain solves the NFTs trilemma

Up to date, creating NFTs on Ethereum is full of challenges due to crippling fees, inflexible smart contracts and disjointed interoperability. Thus, the development of NFTs is still limited and difficult to make real progress. 

Efinity is borned to solve these problems and will be a core part of the multi-chain NFT ecosystem.

Fees

Efinity aims to build an NFT highway, therefore its priority is to focus on the Token creation, transfer and purchase sections. 

Transaction fees on Efinity are designed in the background then allow users to interact with their favorite collectibles without worrying about the fees. 

Incentives

Rewards on PoW blockchains that support NFTs are claimed by miners, not by people who actually create, trade, use the tokens, and build the community. Therefore, unlike Ethereum, Efinity compensates all network participants with their native token EFI including:

• Collator Nodes (Network runners and maintenance).
• Users (Who govern the network).
• Buyers and sellers (Price-discovery facilitators).
• Developers (Project’s builders on Efinity).
• Early adopters and NFT creators.

Network 

Fragmented blockchains and marketplaces lead to the war of liquidity, thus hurting the growth of the digital metaverse. 

Efinity will be a hub for all fungible and non-fungible tokens. It accepts any tokens from any other chain. In the future, Enjin’s Ethereum-base platform will continue to be developed and cross-chain bridges will connect both networks for full compatibility with the entire Ethereum ecosystem. 

Noteworthy features of Efinity - Blockchain utilizes for NFTs

Token Standard

Enjin is building a token standard called Paratokens for Polkadot. This standard will be compatible with parachains, parathreads and smart contracts therefore, it’s interoperable with the entire Polkadot and Kusama ecosystem.

Scalability

Efinity could process up to 1000 transactions per second. Recall to another blockchain’s TPS, I will put the figures here for you to make a comparison:

Transactions are confirmed in 6 seconds, a medium number, allowing fast response times needed for mainstream applications.

Development Platform

Developers will write and deploy contracts using Ink! if they want to bring projects to Efinity. Ink! is a universal smart contract framework that is compatible with all Polkadot-based chains. 

Contracts can be written in a popular programming language named Rust.

Marketplace

Buyers and sellers in Efinity are provided with a robust suite of tools for creating and filling orders for any token.

Ask Orders can be placed by an owner to sell their token. Placing the order will bind the token to the owner’s account until the order is filled or cancelled.

Bid Orders can be placed on a token ID or base ID (which includes all token IDs of the same type).

Price discovery mechanism 

The highest active bid on any Token ID or/and Base ID establishes the best known current price for each NFT. 

The highest bid on any token receives a share of fees and earns weight in the Price Discovery Pool over time for any transactions involving that token. Tokens don’t need to be listed for sale (or even exist on the network) to receive a bid. In fact, users are encouraged to maintain the highest bid on any token.

I will take an example to illustrate this mechanism: 

The ability to place offers on NFTs on any network could change the way people buy things like cars and houses. You might be in search of an antique car; you find the NFT on an automobile showcase website, but the owner isn’t actively selling. Regardless, you can place a bid on the car NFT and see if the owner bites. If he doesn’t, you’ll still get rewarded for being the highest offer.

How does Efinity work?

Transaction Fee Delegation

A transaction can include a fee payer signature, which allows someone else to sign responsibility for fees before broadcasting. This is beneficial for companies and creators who want to subsidize transaction costs for their users. 

Discrete Accounts

Discrete Accounts are unique addresses that can be created and operated on the parachain. They do not have an associated private key.

This address can be used in any transaction, if that transaction is also signed by a wallet (which is allowed to use the discrete account).

Fuel Tanks

Fuel Tanks are special discrete accounts that are used purely for transaction fees. Creators can choose to subsidize costs for their customers by depositing EFI tokens to a Fuel Tank they control. 

Crafting

Crafting allows existing tokens to be modified, or creates new tokens by following a Recipe. This system is useful for gamifying collectibles with minimal effort. Anyone who has a copy of the recipe can execute it on Efinity without any coding experience. 

Tags 

Tags can be used to group related tokens (for instance, covering transaction fees for an entire game’s token collection).

Pools 

Efinity creates various pool to serve these stakeholders:

• Collator Pool: Distributing to active Collator Nodes and to users that vote for these nodes.
• Community Pool: Granting EFI to projects that benefit ecosystem and facilitating initial development by subsidizing the project’s transactions on Efinity.
• Price Discovery Pool: The price discovery process encourages users to place Bid Orders. Top bids for each Paratoken will receive EFI from this pool as compensation until their order is filled or beaten by a higher bid.
• Fuel Tank Pool: Providing a replenishing source of EFI that may be used for paying transaction fees.

What is EFI token?

EFI token is the main utility Paratoken on the network. 

EFI Token Information

EFI token price today 

You could use Coin98 Markets to update EFI token price.

Coin98 Markets is a website that helps users get updates of the real-time prices and view the detailed information of a Token Metric from any project. More specifically, you can access the home page or the community page of a project, or filter the coins/tokens by Market Cap, Trading Volume, etc.

EFI token metrics

• Token Name: Efinity.
• Ticker: EFI.
• Deployment Network: Efinity.
• Relay Chain: Polkadot.
• Token Standard: Paratokens.
• Contract: 0x656c00e1bcd96f256f224ad9112ff426ef053733
• Token Type: Utility and Governance.
• Total Supply: 2,000,000,000 EFI.
• Circulating Supply: EFI has not launched yet.

EFI Token Allocation 

• Ecosystem: 35%.
• Staking & Pools: 15%.
• Company: 20%.
• Team: 10%.
• Seed Round: 3%.
• Early Round: 7%.
• Strategic Round: 5%.
• Public Sale: 5%.

EFI Token Sales

EFI Release Schedule 

• Private Sale: Quarterly vesting in 21 months until 100% unlocked. Started on August 4, 2021.
• Public Sale: Linear vesting in 9 months. Stared on August 4, 2021.
• Company: Monthly vesting over 5 years with milestone accelerations.
• Team: 3 years vesting after 1 year cliff.
• Ecosystem: 3% to the decentralized Treasury Pool on genesis. The remainder is unlocked monthly to the Ecosystem fund over 3 years.
• Staking Pool: 15% of EFI supply to distribute to EFI pool as a Block Reward. The supply will be fully distributed after 8-10 years.

EFI Token Use Case

Currently, the EFI token has two use cases:

• Governance: Submitting and voting on proposals and referendums.
• Network transactions: Paying for transaction fees on the network (approximately 2.5%) and will be distributed to EFI pools on the network.

ENJ Token Use Case

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

Efinity will use Enjin Coin (ENJ), an integral part of the network, for the following cases: 

• Staking: Collators will be required to stake ENJ to create a node on Efinity network and earn passive income in EFI.
• Infusion: Used to infuse digital assets at a fixed bonding cost per token. Every asset minted requires ENJ.
• Collator nomination: Users (nominators) will stake or deposit ENJ to vote and select the best performing collator nodes.

How to buy EFI token

You can buy EFI token through various ways:

• DEXs: Uniswap, Sushiswap,…
• CEXs: Gate.io, crypto.com, Coinlist Pro, MEXC,…

How to store EFI token

You can store the EFI token on Coin98 Wallet when the token is supported. 

Team, Investors, and Partners

Team

Note: The Enjin and Efinity are built and developed by the same team.

• Maxim Blagov - CEO & Co-Founder: Until now, he has spent nearly 14 years devoted to the Enjin ecosystem. He graduated in Computer Science from University of Technology Sydney
• Witek Radomski - CTO: Also an early contributor to Enjin with 13 years of working experience
• Caleb Applegate - COO: In the past, he used to be an advisor, film producer and former COO of Mineplex, one of the world’s largest Minecraft gaming servers.

Investors

In the private sale round, Efinity successfully raised a total value of $18.9M including $3M from the Seed Round, $8.4M from the Early Round and $7.5M remaining for the Strategic Round. Some of their notable investors are Crypto.com Capital, Hashed, DeFi Alliance, Hypersphere,...

Partners

Updating...

Roadmap and Updates

Is EFI a good investment?

Let's look at the data we have gathered before making an assessment on Efinity. However, you should always do your own research for your investment decisions.

In affiliated relationship with Enjin

While Enjin is Efinity’s launchpad, Efinity is an ecosystem unto itself. Enjin is the set of NFT development tools, where Efinity is more like the Internet of NFTs. 

Enjin has already been adopted by over 70 game and app developers, and sooner or later, nearly all of them will adopt Efinity. The noticeable points of Enjin is, in the past, their tech stack had been used by BMW for their Vantage App, and Samsung for their Blockchain Keystore Integration. They are believed not only by Dapps, but also by well-known traditional firms. 

Bear in mind that DApp developers can benefit from Enjin's infrastructure in order to build their products/collectibles. Once these products are done, it will be exchangeable any time on Efinity. Therefore, the bond between them is inseparable.  

Efinity Metaverse Fund: $100M 

The trend of releasing incentive programs to accelerate blockchain ecosystems now attracts many crypto enthusiasts’ eyes and definitely, Efinity doesn't stand being left out of the trend. 

On November, 4th 2021, Enjin announced they have formed a $100M dollar Efinity Metaverse Fund to formalize support for ecosystem partners, and help make the decentralized Metaverse a reality. 

The Metaverse Fund will aim to support Enjin and Efinity adopters, and other organizations working on: Enjin Ecosystem Integration, Metaverse Projects, Gaming, NFT DApps,...

IDO on Coinlist

Coinlist is a platform that helps blue-chip crypto projects connect with new token holders. Coinlist was instrumental in supporting the EFI public sale, which took place in June.

The sale sold out in 2.5 hours, helping Efinity welcome over 40,000 new EFI holders. 

In my personal opinion, Coinlist’s team has a long-term vision. Therefore, almost all projects launched on Coinlist are usually standout with an impressive ROI to investors. 

That is the reason why every project launching on Coinlist usually entices a large number of people to take part in. Some of their prominent projects with very high ROI are Solana, Flow, Casper,...

Similar Projects

Flow: A blockchain serving as a foundation for games, apps and the digital assets that power them. Consumers on Flow are able to control their own data, create new kinds of digital assets sellable on open markets.

Ronin: Ronin Network is an Ethereum scaling (layer 2) blockchain solution customized and designed for scaling NFT games, built by the Sky Mavis team behind Axie Infinity - An iconic blockchain game recently.

Conclusion

If you are impressed by Efinity & Enjin vision after reading this article, and also are a DOT holder, you can support Efinity by joining their crowdloan on Polkadot through this site. The rewards are now approximately 7.5 - 9.75 EFI per DOT contributed per year. Moreover, by staking your DOT coins to Efinity, you will have a chance to receive an Exclusive Degens NFT Reward (out of only 10,042 Degen NFTs in the market). 

Coin98 Insights hopes you have gained all of the important information about EFI including its features and highlights throughout this topic.