Staking Enjin and EFI Rewards for Pricing NFTs on Efinity

0
28

Witek Radomski and Caleb Applegate joined a livestream with Crypto.com on Tuesday to discuss in depth the functions that will make Efinity the proclaimed “NFT Super Highway.” The two remarked upon some of the major questions surrounding the use of EFI, especially the popular topic of ENJ staking, and the passive income received through the ownership of NFTs on the network. 

Staking

Enjin has yet to announce when Efinity will be released, or when people can begin staking their ENJ and EFI tokens, but claim that they have an early alpha of the network running internally. 

It’s a Polkadot nation, Efinity a state, and Collators the mayors who don’t collect taxes, but dispense them to the population as a reward for voting. That’s the ENJ staking process imposed on a broad analogy. The reality is a bit more involved. Polkadot’s nodes take care of the security, but nodes called Collators take care of all the logic and processing of transactions on Efinity itself. 

“Basically… the 10 best nodes that give you the best value, the best uptime, will be selected and voted for by people who hold ENJ in their wallets,” said Radomski. 

People who stake will then receive some of the transaction and marketplace fees their Collator node is collecting. A slice of the transaction fee pie, so to speak. People can vote for 10 nodes, but more will exist outside the top few with the most votes. Companies like major game developers can opt to create their own Collator nodes to run a network more localized to their game, subsidizing transaction fees to facilitate internal circulation, but can also become a public collator node if they receive public votes.  

NFTs enter the staking fray too, made possible because they are both NFT and ENJ at the same time. A crypto turducken. Because there’s ENJ infused into every NFT, the NFTs in a person’s wallet are automatically staked towards a Collator node, so users collect EFI simply by holding NFTs. 

The Value of NFTs

Usability was at the heart of Tuesday’s conversation, alongside other popular words in today’s crypto canon like ‘frictionless’ and ‘interoperability’. Enjin’s goal with Efinity is to bake NFTs completely into their context, letting the companies producing them bear the burden of transaction fees until the user wishes to bring the NFT into the greater marketplace. 

“You don’t want to go on an exchange on day one of receiving an NFT, you want to get familiar with it in the context you received it. Then you’ll start learning about crypto, you’ll back it up into your real wallet…” said Radomski. 

Enjin wishes to optimize the greater marketplace experience as well, building a pricing model based around rewarding users for suggesting values for NFTs. Radomski first explained the cumbersome present method. 

“The only way you can [find the value of an NFT] is if somebody purchased the NFT in the past, and you know that the last guy who purchased this, it’s worth this much, so similar NFTs are probably worth around that much,” said Radomski. 

Instead, the Efinity network will incentivize users to estimate the price floor of an NFT with EFI rewards. People can get paid for going on the marketplace, and determining that this Minecraft Stone Shovel is worth around $3, or this collection of excited, dancing apes is worth $20,000. Radomski assures that the price set by these users won’t necessarily be final, but will help the network determine that “This NFT is worth this much in relation to this one,” he said. 

“We want participants to add value to the network,” said Applegate. 

Efinity is a cross-chain network via bridges, so users can also use it to price NFTs native to Ethereum, and the owner could see the price prediction on Efinity and move the NFT over to list. And of course, this system produces tons of data for Enjin to reap, and create predictive models based on the pricing established by users. 

Summary

It’s an experiment, as Applegate and Radomski said, and Polkadot has yet to see serious activity in comparison to Ethereum. But if Enjin keeps building these partnerships and working with new game developers, they could start bringing more significant traffic to Polkadot upon the launch of the Efinity network. 

With this column going on two months now, I’ve tried to answer some of the common questions asked in Enjin forums, but would welcome any topics of interest you, the reader, might have about the Enjin ecosystem that you’d like me to write about. My DMs are open on Twitter, go nuts. 

Want more? Connect with NFT Plazas

Join the Weekly Newsletter
Join our Discord
Follow us on Twitter
Like us on Facebook
Follow us on Instagram

*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.


Credit: Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here