Enjin Coin (ENJ) is an Ethereum-based cryptocurrency used to directly back the value of next-generation blockchain assets.
It is the gold standard for digital assets.
Every digital asset created with the Enjin Platform is an ERC-1155 token backed by ENJ. Here's why:
Consumer Trust: Owners can melt their assets back into ENJ anytime via the Enjin Wallet. In this case, ENJ acts as a guarantee of value, increasing confidence in the assets and faith in the projects offering them.
Certificate of Authenticity: The ENJ stored within assets proves their origin and certifies their compatibility with the Enjin ecosystem—guaranteeing the assets’ usability and superior technological quality with ironclad certainty.
Perceived Value: ENJ is effectively a gold standard for digital assets—a virtual material used to forge them. Perceived value of digital assets is positively impacted by the amount of their ENJ backing.
Asset Scarcity: Digital assets are often valued based on scarcity. As existing assets are melted, scarcity increases over time, thereby lowering the asset supply and increasing their value.
Tangibility: Unlike other digital assets, tokens backed by ENJ are created with something of value and can be destroyed again at any time — the two core properties of any real, physical item.
Hyperinflation: If everyone can create infinite digital assets, how do we prevent the oversupply of assets from tanking their value? As the digital asset economy grows, backing items with ENJ is the only way to effectively regulate asset creation and curb hyperinflation.