Over 160 Million CFX Burned
Conflux Foundation has publicly released its first quarterly financial report (November 2020–January 2021) to uphold transparency and foster the healthy growth of the Conflux network. The report focuses on two key actions: token burning and team lockup.
According to the Conflux Network Economic Whitepaper, the 5 billion CFX genesis tokens were allocated as follows:
- 16% for private investors & foundation reserve (unlocked over 2 years)
- 36% for the core team and seed investors (unlocked over 4 years)
- 8% for community funds (unlocked over 4 years)
- 40% for ecosystem funds (unlocked over 4 years)
Breakdown of Unlocked CFX
- Core Team: 6.25% unlocked (112.5 million CFX), with 68,263,750 CFX distributed and 44,236,250 CFX remaining.
- Ecosystem Fund: 6.25% unlocked (125 million CFX), of which 0.01% was distributed, leaving 124,762,408 CFX unallocated.
Following a network upgrade vote on December 14, 2020, unused ecosystem funds were burned monthly for six months post-Tethys launch. A total of 165,429,074 CFX was burned to a zero address.
Team Voluntarily Locks 88 Million CFX
To demonstrate long-term commitment, Conflux founders, the chief scientist, select seed investors, and unallocated team tokens (88,049,445 CFX) were voluntarily locked until at least August 2021.
👉 Learn more about Conflux's tokenomics
Impact on Circulating Supply
- Total CFX burned/locked: 253,478,519 CFX
- Circulating supply: 554,347,980 CFX
- Percentage affected: 45.73%
This move mitigates concerns about team/investor sell-offs and strengthens market confidence.
Future Transparency Measures
Conflux Foundation pledges to disclose financial reports quarterly, ensuring accountability and aligning with blockchain industry best practices.
Why This Matters
- Scarcity boost: Burning tokens accelerates CFX circulation.
- Community trust: Lockups signal team conviction in Conflux’s future.
- Ecosystem growth: Long-term stability encourages developer and partner adoption.
FAQs
1. How often will Conflux release financial reports?
Conflux plans quarterly disclosures to maintain transparency.
2. What percentage of CFX is still locked?
As of this report, 45.73% of circulating CFX is burned or locked.
3. Why burn ecosystem funds instead of redistributing them?
Burning reduces supply inflation and aligns with community consensus from the December 2020 vote.
4. Can locked CFX be released earlier?
No. The team’s 88 million CFX is contractually locked until August 2021.
5. How does this impact CFX’s market value?
Reduced supply and increased holder confidence may positively influence price stability.
6. Where can I verify burn/lockup transactions?
Conflux provides wallet addresses for public auditing in its reports.
By balancing strategic burns, lockups, and transparency, Conflux reinforces its position as a leader in sustainable blockchain development. 🚀