Since 2020, the zero address on the Conflux network (cfx:aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa0sfbnjm2) has accumulated over 496 million CFX.

https://www.confluxscan.org/address/cfx:aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa0sfbnjm2 7


The current overall market environment is in a downturn, and is affected by Chain Param Voting Round 14 & 15. The PoW block reward and PoS benchmark return rate have been adjusted upwards, indirectly bringing inflation pressure for nearly four months (from April 12 to August 10). Given the current community's concern about CFX inflation pressure and related discussions and suggestions, in order to further stabilize community confidence and strengthen ecological connections, the Conflux Foundation has decided to launch a new round of CFX destruction plan and actively stabilize PoS yield:


Total amount of destruction: 76,000,000 CFX


The total amount of destruction for this Conflux ecological fund is 76,000,000 CFX. After the destruction is completed, on-chain records and details will be announced.

The total amount of destruction this time will cover the increase of CFX in the entire Conflux network from the effective date of the network parameter adjustment CFX output rate (Chain Param Voting Round 14, effective date April 12, 2025) to the next network parameter adjustment (Chain Param Voting Round 16, voting deadline June 11, 2025, expected effective date August 10, 2025), approximately four months. Among them, the PoW output is about 33 million CFX, and the PoS output is estimated at 43 million CFX.

Calculation basis:

PoW output: After the adjustment in Round 14, the block reward is 1.6 CFX/block. Over four months, this totals approximately 1.6 (CFX/block) * 2 (blocks/second) * 86400 (seconds/day) * 120 (days) = 33,177,600 CFX.

PoS output: After the adjustment in Round 14, the PoS base rate is 6.5%. Under the current staking amount (~710M CFX), the PoS APR is 18.2%. Based on this, the total PoS rewards over four months are 43,073,333 CFX. If the PoS APR decreases to 13% (see below), this part of the reward will be correspondingly reduced to 30,766,667 CFX. Here, we still take the higher estimate of about 43 million.



Stabilizing PoS yield


The Conflux ecological fund will increase 500,000,000 CFX to participate in PoS staking until the next network parameter adjustment (Chain Param Voting Round 16) takes effect. By increasing the total amount of PoS staking, it is expected that the annualized return rate (APR) will be reduced from the current 18.2% to 13.38%. The interest generated from the CFX staked by the foundation, approximately 5,575,000 CFX per month, will be locked for at least two years, and after the term expires, the subsequent disposal method (destruction or replenishment of the Conflux ecological fund reserve) will be discussed and announced.

In addition to the above actions, the Conflux Foundation will also fully communicate with major holders of CFX, investors, founding teams, mining pools, exchanges, and other partners, and participate in the next round of voting on key parameters for PoW and PoS (Chain Param Voting Round 16) to achieve a more balanced and sustainable token incentive structure.

The foundation will initiate a vote on this destruction plan on April 28, 2025, in Governance, and we will release relevant announcements at that time. Please pay attention and participate in the vote in a timely manner. Thank you for your support of Conflux!