Efinity is a Polkadot parachain created by Enjin — the company behind the Enjin network — with collaboration from the Web3 Foundation. With Efinity, Enjin aims to address pain points in the current nonfungible token user experience. Specialized for NFTs, Efinity enables faster transactions at a lower cost when minting, buying and selling tokenized assets. EFI is the Efinity network's native token and is used for transaction fees, liquidity provision, rewards and governance activities.
Polkadot parachains are fully customizable, enabling developers to specialize their networks to specific use cases. As such, Efinity can process between 700 and 1,000 transactions per second while benefiting from the Polkadot Relay Chain's security. In contrast to Ethereum and similar networks, Enjin describes Efinity as a next-generation "NFT highway" rather than a general computing blockchain. By improving the NFT user experience, Enjin believes Efinity can help push the niche's adoption among more mainstream users.
Part of this relates to cross-chain interoperability, and Enjin designed Efinity to support the movement of NFTs from any blockchain to Efinity. The company has developed a new token standard that it calls Paratokens. EFI is the first Paratoken and can transact between different parachains. As such, it is compatible across the whole Polkadot and Kusama ecosystem.
EFI has a fixed total supply of 2 billion tokens. Its use as a medium of exchange for transaction fees to reward various network participants and within the network's governance process should ensure future demand, which will result in upward pressure on EFI price. Additionally, EFI brings additional utility to the Ethereum-based ENJ token through staking on the network.
The 2 billion EFI tokens are distributed as follows: 20% to investors, including seed rounds and public sales; 30% split between the team and company; 15% to staking pools; and 35% to the Efinity ecosystem. The release of these tokens may result in selling pressure that will exert downward pressure on EFI price. However, the release schedule is designed to inflate the supply by just 2.85% in the first year, with releases slowing to just 0.15% in year 10 when the last EFI tokens enter circulation.
Maxim Blagov, a computer science graduate from the University of Sydney, and Witek Radomski, the ERC-1155 Ethereum token standard creator, founded Enjin in 2009. The company's first blockchain product, also called Enjin, was a software package enabling the creation of virtual items on Ethereum. Enjin partnered with Microsoft in 2019 to create the developer rewards program Azure Heroes.
Enjin has raised more than $60 million in funding over several rounds. In a June 2021 funding round, the company attracted backing from Hashed, Crypto.com, the Digital Finance Group and several other notable investors.