Learn about Enjin Coin Staking
Can I stake ENJ?
Enjin staking refers to the process of participating in the Enjin Blockchain's proof-of-stake mechanism by holding and allocating ENJ tokens. This staking system is designed to ensure network security and reward participants. Users can easily stake their ENJ tokens by selecting a nominated pool with one click, streamlining the staking process and eliminating the need for manual node selection. In addition, ENJ holders can utilize custodial services to stake tokens.
Staking: You can stake ENJ by joining a nomination pool. sENJ stands for staked ENJ and is obtained when you stake your ENJ tokens, being burned when you decide to unstake. You have the option to stake your ENJ in either a Validator or Collator. Upon receiving sENJ from staking, it can be exchanged for ENJ via a dedicated trading process available on the platform.
Custodial Staking: Custodial services provide staking pools for ENJ where users can contribute their token holdings. While this isn't traditional staking, it enables ENJ holders to earn rewards. This method allows ENJ holders to gain rewards without using a standard staking mechanism.
How much can I earn staking ENJ?
Staking: Your staking reward is calculated based on the percentage of ENJ tokens you've staked within a nominator pool. As you stake more ENJ, your portion of the total rewards in the pool increases accordingly.
Custodial Staking: Centralized third-party providers mostly utilize strategies where assets from each plan and type are consolidated and allocated for yield in various on-chain opportunities. Some of the avenues for yield generation are mining, staking, liquid staking, proprietary market-neutral algorithmic trading, and collateralized on-platform lending.
What are the risks to staking ENJ?
Slashing: Keep in mind that your rewards may fluctuate if a slashing event occurs. If a validator breaches security protocols or jeopardizes the blockchain's integrity, both the validator's rewards and staked ENJ may be slashed, affecting the tokens of the nominator pools that supported it.
Platform Security: Ensure the platform you choose is reputable and secure. There is a counterparty risk associated with lending to a custodial provider.
Regulatory Risk: Be aware of the legal and regulatory environment surrounding cryptocurrency lending and staking in your jurisdiction.
Liquidity Risks: Depending on the terms and conditions of the custodial staking arrangement, users may face liquidity risks, especially if there are lockups or restrictions on withdrawing staked funds. Evaluate the platform's withdrawal policies and lock-up periods to assess the potential liquidity risks.
Before staking ENJ, consider factors such as the reputation and security of the staking platform, the potential rewards and risks involved, any lock-up periods or withdrawal restrictions, and your own investment goals and risk tolerance.
What is Enjin Coin?
Enjin Coin (ENJ) is an Ethereum-based cryptocurrency used to directly back the value of next-gen NFTs.
ERC-1155: The Multi Token Standard
Bleeding-edge token standard used to mint fungible and non-fungible tokens—in a single smart contract.
How was Enjin Coin launched?
Enjin was originally established in 2009 when it launched the Enjin Network, a community gaming platform. Still operational today, the Enjin Network service enables individuals to build websites, forums, and apps for gamers.
The company pivoted into the blockchain industry in 2017 following an Initial Coin Offering (ICO) that raised $18.9 million. Since the launch of its ERC-20 token, Enjin Coin (ENJ), the firm has since built out its own set of blockchain tools and services. In January of 2018, the gaming firm released the own android version of its blockchain wallet, the Enjin Wallet. A few months later the firm released an iOS version of its Enjin wallet.
During the summer of 2018, Enjin officially launched its Enjin Platform on the Ethereum mainnet is also compatible with the Kovan Testnet. The Enjin Platform is a platform as a service that allows other game developers to issue fungible and non-fungible assets as in-game Ethereum tokens. That same year, Enjin proposed a new ERC token standard – ERC-1155 – which was approved in 2019 and now implemented in its current software.
Who is the team behind Enjin Coin?
Some core members of the team include the following:
Maxim Blagov – Chief Executive Officer
Witek Radomski – Chief Technical Officer
Caleb Applegate – Chief Operating Officer
Ilija Rolovic – Chief Marketing Officer