Question 1

What is ENJ?

Accepted Answer

ENJ is the native governance and utility token of the Enjin Blockchain. It is used for transaction fees, staking, and governance on the chain, and supports functions such as NFT minting and the NFT.io marketplace; therefore, native ENJ is the foundational asset used to perform these operations on that chain, rather than merely the earlier Ethereum token version with the same name.

Question 2

What can ENJ be used for?

Accepted Answer

ENJ can be used to pay transaction fees on the Enjin Blockchain, as well as for governance staking, NFT minting, and trading activity on NFT.io. Different uses correspond to different on-chain or marketplace operations: for example, transfers and cross-chain asset transfers incur fees, while minting or marketplace trades use ENJ according to their respective processes; holding ENJ itself does not automatically make all operations free.

Question 3

What is the role of staking ENJ, and where do rewards come from?

Accepted Answer

ENJ staking supports network security and governance. Enjin uses nominated proof-of-stake: validators produce blocks and maintain the network, while nominators delegate their support to validators they endorse; reward arrangements are connected to this participation structure, and participants may also be subject to penalties under protocol rules. The native ENJ design also provides for annual inflation of 5% of the total supply for validator and nomination pool rewards, so reward sources include this new issuance mechanism.

Question 4

How is ENJ related to NFTs?

Accepted Answer

Creators can use ENJ when minting NFTs, or infuse ENJ into an NFT to create an ENJ reserve within that NFT. If a holder chooses to melt that NFT, the NFT itself is destroyed and the ENJ infused into it can be recovered; therefore, “recovering ENJ” is conditional on giving up the NFT, rather than receiving the same ENJ additionally while retaining the NFT.

Question 5

What is the difference between native ENJ and ERC-20 ENJ?

Accepted Answer

Native ENJ is on the Enjin Blockchain; ERC-20 ENJ is the earlier version on Ethereum. The historical migration arrangement allowed legacy ERC-20 ENJ to be exchanged for native ENJ under the applicable rules; before migration is completed, the legacy token remains on Ethereum and cannot directly use the new-chain functions as a native token on the Enjin Blockchain.

Question 6

How does ENJ issuance work?

Accepted Answer

The initial supply of native ENJ was 1.75 billion tokens, including allocations reserved for legacy ENJ migration, EFI conversion, and early governance rewards. The migration plan subsequently provided for annual inflation of 5% of the total supply for validator and nomination pool rewards; thus, the initial supply describes the composition at mainnet launch, while annual inflation describes the mechanism through which subsequent reward distribution can increase supply.

Question 7

How can ENJ be used in the NFT marketplace?

Accepted Answer

ENJ can serve as the native trading token of the NFT.io marketplace, for directly purchasing NFTs or placing auction bids. Completing a trade still depends on the counterparty's order, execution conditions, and the NFT's liquidity; ENJ acts as the payment asset in the marketplace and does not guarantee the price of any NFT or of ENJ itself.

Question 8

What happens to legacy ENJ after migration?

Accepted Answer

In the historical migration, the mainnet reserved 1 billion native ENJ for ERC-20 ENJ and migrated it at a 1:1 ratio; EFI was converted into ENJ at a 4:1 ratio. When migration is completed, the legacy tokens enter an inaccessible burn address, making the operation irreversible; users must first distinguish which type of legacy asset they hold to understand the applicable conversion ratio and migration outcome.

Question 9

Which mechanisms affect how ENJ use and supply should be understood?

Accepted Answer

When network usage is associated with NFT minting, marketplace trading, or fee payments, it may create operational demand for ENJ; staking puts ENJ toward network security, while inflation rewards change supply. These factors do not directly determine price: actual effects also depend on whether users actually adopt these functions, whether asset holders are willing to hold or sell, market liquidity, and overall market conditions.

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