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2 months ago

Enjin: Will Efinity Network win the Parachain auction?

Enjin has become one of the most important gaming platforms in the crypto space. It allows managing virtual goods on the Ethereum blockchain. This is specifically useful for in-game content. Items like equipment for your avatar, weapons, and even real estate in the metaverse can be tokenized and become an asset. It was at the beginning of November when the project announced a 100 million US-Dollar metaverse fund for the Efinity Network. What are the plans for Efinity? What is it all about and how is Polkadot going to play an important role?

A cross-chain NFT network

Efinity is a cross-chain NFT network that aims to utilize Polkadot. Efinity is going to be a Parachain, which means that it has its own blockchain but validation and transaction security are granted by Polkadots relay chain. This allows for interoperability and has also the advantage in terms of speed and transaction costs.

While Enjin is native to the Ethereum Blockchain the Efinity Network will allow exchanging NFTs between blockchains. With a war chest of 100 million Dollars and a technology that is capable of handling in-game assets and building a bridge between blockchains the price for Enjin took off at the end of October and kept rallying during the most part of November.

Parachain auction is running

Polkadot has a limited number of slots for Parachains. In order to establish a fair competition for the scarce opportunity to win a slot, Parachains are auctioned. Along with the funds that each participant has to place a bid they can also source funds through so-called crowd loans.

A crowd loan allows users to lend DOT, the native token of Polkadot, to a project for a specific time and for the purpose to place a winning bid during the auction. In return, projects offer an incentive for the loan such as an allocation in the project’s native token.

Supporters of Efinity will be rewarded with EFI tokens along with an exclusive set of NFTs for the top 250 crowd loan contributors and another set of NFTs randomly distributed among all contributors. The amount EFI is determined by the individual size of the contribution and 10 % of the token supply will be shared among the contributors. Efinity is trying to with the fourth auction for a Parachain in the first batch. Bidding will start tomorrow and will end on December 9th, 2021. Should the project win the bid, Efinity Network could start by the end of this year.

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