1. Timelines and Details of Token Burning
- Date of Execution: Burning of 76 million CFX is scheduled after the voting ends, which will last until June 11, 2025. The exact date of the transaction will be announced later, and its details will be published on the blockchain.
- Goals:
- Reduction of inflation caused by Proof-of-Work (PoW) and Proof-of-Stake (PoS) rewards.
- Stabilization of the ecosystem through staking 500 million CFX, which will reduce the annual PoS yield from ~18.2% to ~13.38%.
2. Potential Impact on CFX Value
- Deflationary Effect: A reduction in token supply can increase their price while maintaining demand. Similar measures in other projects (e.g., $BNB) have historically supported value growth.
- Forecasts for 2025:
- Conservative Scenario: $0.11–$0.13 (average price — $0.1114).
- Optimistic Scenario: Up to $0.1340 under favorable market conditions.
- Long-term Prospects: Growth to $0.87–$0.90, and by 2030 up to $56–$92.
3. Factors Contributing to Growth
- Support from China: Conflux is the only blockchain approved by the Chinese government. Partnerships with China Telecom and integration with the digital yuan enhance investor confidence.
- Technological Advantages:
- High throughput (up to 6000 TPS) and low fees.
- Compatibility with Ethereum (EVM) and multi-chain solutions (e.g., ShuttleFlow).
- Ecosystem Development: Launch of Bitcoin L2, integration of smart contracts, and growth of DeFi/NFT projects.
4. Risks and Limitations
- Volatility: The cryptocurrency market is subject to sharp fluctuations. For example, over the last 7 days, the price of CFX has dropped by 10.73%.
Conclusion
Burning of CFX tokens and staking 500 million coins are strategic steps to combat inflation and increase network stability. Short-term growth to $0.13–$0.15 depends on the implementation of technological ideas and regulatory support. Investors should consider the risks and diversify their portfolios.