It’s an exciting time for Enjin as the Efinity network is trying to win one of the five auctions held by Polkadot to become an associate member in their network. According to Parachains.info, the first slot of the Lot 1 auction has ended and Efinity is in eighth place with over 1 million DOT ($41 million).
The DeFi platform Acala won the first slot after being tied with the Ether-compatible layer Moonbeam.
Enjin doesn’t necessarily expect to win the first slot, with Acala and Moonbeam being the heavy hitters in the early rounds, but rather make a push for the fourth slot in this first batch of auctions, which will be decided on December 2. There are five spots in the first batch, and while there is a certain charm to being the first (with extra visibility), technically all paragons function the same regardless of when they are established.
If they win the slot, Efinity’s network will be running on the main network by the end of 2021.
The community essentially decides the fate of the Efinity parachain, as the voting system is based on how much of a stake DOT users have in the company’s crowdfunded loans on Polkadot.js, a leading Polkadot wallet (and just this morning Kraken’s Polkadot auction platform.) Enjin created for its community an incentive to contribute to the crowdfunding, saying in a press release that “a fixed pool of 10% of the EFI supply (equivalent to 200 million EFI tokens) will be allocated to contributors on a pro-rata basis.”
Efinity’s bid for the parachain slot also heralds the dawn of wagering and answers the age-old question of “wen.” in a Nov. 4 press release, Enjin mentioned that the crowdfunding loan will allow, “individuals to wager their DOT, ETH, ENJ, USDC or USDT for EFI rewards.” This isn’t really an ENJ bet yet, which will help get the Efinity network up and running, but it’s a key step on the road to getting there.
Ludena and Enjin
Enjin made some major announcements ahead of the auction, including an agreement to partner with South Korean social gaming platform Ludena to promote their network to the Asia-Pacific gaming market and the creation of a $100 million Efinity metaverse fund to support emerging projects on the Efinity parachain.
These announcements and auctions solidify Enjin’s big bets on the Polkadot network, continuing to push the narrative of interoperability and the environment around released languages in an era of heightened skepticism about NFT and its impact on the environment.
Environmental concerns were brought to the forefront in Enjin’s partnership with Ludena, which chose to work with Enjin “because of their robust, environmentally friendly technology stack and Efinity,” said Kenneth Lee, Ludena’s chief operating officer.
Ludena’s partnership implies a focus on growth in Asia, a huge market that attracts any company with gaming as its flagship industry. ludena, as a kind of P2E Steam, focuses more on the social media side, hosting a variety of games such as Axie Infinity, The Sandbox, and now a suite of games powered by Enjin. Their social network, called GameTalkTalk, allows users to buy and sell NFTs, earn rewards for posting, and put their tokens into shares. This is where Efinity comes into play, and according to a recent press release, GameTalkTalk will be used to host more eco-friendly NFTs.
With 3 million subscribers, Ludena aims to dip into the more than 3 billion potential gamers in the Asia-Pacific region.
“Partnering with the Ludena agreement will enrich Enjin’s vibrant ecosystem, exposing companies like KillBox and Chainos to blockchain-powered gaming mechanics. We welcome all developers and creators to join us as we secure the foundation of the meta-universe,” said Rene Stefancic, Head of Partnerships at Enjin.
The $100 million in the Ecosystem Fund will also stimulate the growth of the network, and the money will serve as seed and equity funding for early-stage projects.Enjin has not yet announced any projects that will receive nourishment from the fund.
The end of this year is a critical period in Enjin’s timeline, with much hinging on a parachain auction to establish itself as a key player in the Polkadot ecosystem. A move into APAC could mean a higher subscriber base, increased network usage and NFT sales.
Right now, despite huge gas costs, the NFT ecosystem still lives on Ether and many on Solana. efinity will have to suck away some of the major players to grab a seat in the arena or prove itself as a worthwhile place to transfer tokens. They are, after all, a bastion of interoperability.