Since 2020, more than 496 million CFX have accumulated in the Conflux network’s zero address (cfx:aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa0sfbnjm2):
https://www.confluxscan.org/address/cfx:aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa0sfbnjm2
Given the current market downturn and the results of Chain Parameter Voting Rounds 14 and 15, the PoW block reward and PoS base rate have been increased. This change will result in inflationary pressure from April 12 to August 10, 2025.
To address concerns about CFX inflation, stabilize confidence, and strengthen ecosystem cohesion, the Conflux Foundation will initiate a new round of CFX token burning and staking to lower the PoS APR.
Total Burn Amount: 76,000,000 CFX
76,000,000 CFX from the Conflux Ecosystem Fund will be burned. On-chain records and transaction details will be published upon completion of the burn.
This amount addresses the CFX inflation that occurred after the network parameter change from Chain Parameter Voting Round 14 (effective April 12, 2025) until the next parameter update, expected on August 10, 2025, following Chain Parameter Voting Round 16, which concludes on June 11, 2025.
The total includes approximately:
-
33 million CFX from PoW inflation
-
43 million CFX from PoS inflation
Details:
PoW Inflation:
PoW Base Block Reward is 1.6 CFX per block.
Over four months:
1.6 (CFX/block) × 2 (blocks/sec) × 86,400 (sec/day) × 120 (days) = 33,177,600 CFX
PoS Inflation:
With a base rate of 6.5% and current staking volume (~710 million CFX), the estimated APR is 18.2%.
PoS reward within four months is 43,073,333 CFX.
If the APR is reduced to 13%, the reward would be 30,766,667 CFX.
For this estimation, we will proceed with 43 million CFX.
Lower PoS APR
To reduce the current PoS APR, the Conflux Ecosystem Fund will stake 500,000,000 CFX until the next parameter update, Chain Parameter Voting Round 16, takes effect.
This is expected to lower the APR from 18.2% to approximately 13.38%.
The staking will generate about 5,575,000 CFX in rewards per month. These rewards will be locked for at least two years, after which the Foundation will open discussions and publicly announce the subsequent plan: either to burn the rewards or allocate them to enhance Conflux Ecosystem Fund reserve.
Next Steps
The Conflux Foundation will coordinate with core CFX holders, investors, the founder group, mining pools, and exchanges to participate in the upcoming PoW and PoS parameter vote (Chain Parameter Voting Round 16). The goal is to establish a more balanced and sustainable token incentive structure.
A formal governance proposal regarding this burning plan will be submitted on April 28, 2025. We encourage all community members to stay tuned and participate in the upcoming vote. Thank you for your continued support!
Conflux Team
April 25, 2025