Using Enjin Coin

Enjin Coin is used to pay Transaction Fees (also known as Gas), Storage Deposit, and to add ENJ Infusion to MultiTokens on the Enjin Blockchain.

Enjin Coin can come in three different forms:

• ENJ: This is the native version of Enjin Coin. You can buy it on cryptocurrency exchanges and use it for each Blockchain Transaction or use it to create new MultiTokens on the Enjin Blockchain Mainnet.
• cENJ: This is the Testnet version of Enjin Coin. It's available for free from the cENJ faucet and can be used just like ENJ for transactions and minting MultiTokens, but on the Enjin Canary Testnet.
• sENJ: sENJ represents staked ENJ. It's issued to you when you stake your ENJ and is destroyed when you unstake. You can Stake your ENJ into a Validator or Collator. Once you've received your sENJ from staking, it can be traded for ENJ through a specific trading process on the platform.

ENJ Infusion

Infusing ENJ to a MultiToken is the process of locking Enjin Coin (ENJ) inside each MultiToken unit as its backing value.

Here's why it's important:

• The MultiToken holder can melt it at anytime to retrieve the embedded ENJ. This provides intrinsic value for MultiTokens, bringing value besides it's market value.
• Once aMultiToken is infused, the infused amount is required to be deposited for each new unit minted, making the asset more scarce.

It’s important to note that once a MultiToken is infused with ENJ, it's infused ENJ amount can increase but it can never be decreased.

Minimum Account Balance (Existential Deposit)

To maintain an Enjin Coin Account on the network, a wallet must have a balance above 0.01 ENJ. If an Enjin Coin Account balance falls below this, it is automatically deleted unless a transfer includes the keepAlive flag set to true, which prevents deletion during the transfer process.

The minimum account balance requirement does not affect NFTs or MultiToken accounts. You can safely hold NFTs in a wallet even if its Enjin Coin Account balance is 0 ENJ.

When keepAlive is set to true, it guarantees that the sending account will stay active, even if its balance drops below the network's minimum threshold. However, if you set keepAlive to false, the network might delete the sender's account once its balance falls below the minimum requirement (which is 0.01 ENJ on the Enjin network). This deletion occurs because the system assumes that the account is no longer in use.

This feature is particularly useful when you are transferring the entirety or a large portion of an account's funds and want to make sure that the account remains active after the transfer. It is a safeguard against accidental deletion of accounts due to balance underflow as a result of the transfer.

Token Account Deposit

A Storage Deposit of 0.01 ENJ is required for each MultiToken holder.
This deposit is also known as Token Account Deposit.
Once MultiTokens are destroyed, or 'burned', this deposit is returned to the issuer's account proportionally.

👍

Next, learn how to Use the Enjin Platform.