The Conflux Foundation has officially published its first quarterly financial report for the CFX token, covering the period from November 2020 to January 2021. This milestone disclosure underscores Conflux’s commitment to transparency, fairness, and long-term network sustainability. The report focuses on two pivotal initiatives: token burning and voluntary team lockups, both of which play a crucial role in strengthening market confidence and enhancing the intrinsic value of the CFX ecosystem.
By proactively managing token distribution and aligning stakeholder incentives, Conflux is setting a new benchmark for accountability in the blockchain space. These actions not only reflect responsible governance but also demonstrate the team's unwavering belief in the project’s future.
🔥 Over 165 Million CFX Tokens Burned
One of the most significant outcomes detailed in the report is the permanent removal of 165,429,074 CFX tokens from circulation. This large-scale burn was executed in accordance with the results of a community-driven governance vote held on December 14, 2020, during the Tethys network upgrade.
According to the approved proposal:
- For the first six months after the Tethys mainnet launch, funds from the Conflux Network Ecosystem Fund would not be allocated for any new purposes.
- Monthly surplus tokens—after covering storage and gas fee subsidies—would be sent to a zero address, effectively removing them from circulation.
👉 Discover how strategic token burns can boost long-term investment value.
This mechanism ensured that excess ecosystem tokens did not flood the market prematurely, thereby protecting price stability and promoting scarcity. The burn has now been fully completed, with all eligible tokens successfully transferred to an unrecoverable address.
Additionally, the report provides clarity on token unlocks:
The Founding Team and Seed Investors allocation (36% of total supply) has unlocked 6.25% so far, amounting to 112,500,000 CFX.
- Of this, 68,263,750 CFX have been distributed.
- A remaining balance of 44,236,250 CFX remains unissued.
The Ecosystem Fund (40% of total supply) has also unlocked 6.25%, or 125 million CFX.
- Only 0.01% (200,000 CFX) has been actively used.
- The current balance stands at 124,762,408 CFX, with the rest either burned or reserved for future ecosystem development.
These figures highlight disciplined fiscal management and reinforce trust among community members.
🔒 Team Voluntarily Locks Over 88 Million CFX
In a powerful show of confidence, key members of the Conflux core team—including all founders, the chief scientist, select seed investors, and undistributed team allocations—have voluntarily locked up 88,049,445 CFX tokens. These tokens will remain inaccessible until at least August 2021.
This strategic decision addresses one of the most common concerns in crypto projects: early insider sell-offs. By locking their holdings, the team signals long-term commitment and eliminates short-term speculation risks.
"When builders stake their own assets, it speaks louder than any roadmap." – Community Member
With a current circulating supply of 554,347,980 CFX, the combined impact of burns and lockups represents a staggering 45.73% of all available tokens. This level of participation from insiders significantly enhances investor trust and supports sustainable price discovery.
Transparent Address Disclosure
To ensure full transparency, Conflux has publicly disclosed the wallet addresses involved in both burning and lockup activities:
Burn Transaction Hashes:
0x70376dd04c62a0f7bd8e25cea7f88d792c07b5a575113943585397495c49cf1c0xd364c5dd2d0152e99945f110a13102e41b0037fc0725471cdd211405b0970bed0x4987198677ea3a39bcf4441a8692ba9a7830d6365913e8920c9a3e8f37f40585
Lockup Addresses:
cfx:acfb4d6pxc662y8uus8b4kea4g37cfurzymz4z0e19cfx:acgggd313hdur6f0pxfzyn69mg4wju3gv6pb614x1dcfx:aat1shgyt7bf0tmjsje2465d83e4jhtu8eb9w8rbb0cfx:aaryuw8k9pjxyud2parwnh5bb1srnwuvd6rypertuycfx:aak0t61kr9vst67pwpv3rhprjaau3dvd4jtzym5mrccfx:aan3r2889ukgsx5njruffaxpxvh6nkv7fawjtpykjfcfx:aanjhbh2t4hbjsej7ahnzgdnt3p9j7085etxbyst1ucfx:aat1cy4ujbzx1khsd3hwsu2x2fnrfrd6bufah2dfb9cfx:aajp8bzdc0kf6y8d6mvp4ttavu8pav8hc6wtgx0vbmcfx:aartyz300uv6fc9ceupjjabn79jgspw6rux6yu4h4w
All transactions are verifiable on-chain, reinforcing Conflux’s dedication to open governance.
📊 Why Token Burns and Lockups Matter
Token burns and lockups are more than just symbolic gestures—they are fundamental tools for economic design in decentralized networks.
Benefits of Token Burning
- Reduces inflationary pressure: Removing tokens from circulation helps maintain or increase scarcity.
- Boosts holder confidence: Demonstrates responsible use of ecosystem funds.
- Aligns with deflationary models: Over time, sustained burns can contribute to upward price pressure.
Advantages of Voluntary Lockups
- Prevents market dumping: Ensures early stakeholders don’t exit prematurely.
- Signals long-term vision: Builds credibility with investors and partners.
- Strengthens network security: Encourages active participation over speculation.
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Together, these mechanisms foster a healthier, more resilient economy—one where value accrues to users and long-term supporters rather than short-term traders.
🌐 Looking Ahead: Commitment to Ongoing Transparency
The Conflux Foundation has pledged to release financial updates every quarter, ensuring continuous visibility into fund usage, unlock schedules, and ecosystem growth. This regular cadence will allow stakeholders to track progress and hold the foundation accountable.
Future reports may include:
- Detailed breakdowns of ecosystem fund allocations
- Progress on developer grants and partnership integrations
- Updates on network performance and adoption metrics
As Conflux continues to expand its real-world applications—from DeFi to NFTs and enterprise solutions—transparent governance will remain a cornerstone of its success.
Frequently Asked Questions (FAQ)
Q: What is the purpose of burning CFX tokens?
A: Burning reduces the total circulating supply, increasing scarcity and potentially boosting long-term value. It also ensures unused ecosystem funds don’t disrupt market equilibrium.
Q: Who decided on the token burn?
A: The burn was approved through a community governance vote during the Tethys network upgrade, reflecting decentralized decision-making.
Q: How much of the circulating supply was affected by burns and lockups?
A: Combined, burned and locked tokens account for 45.73% of the current circulating supply of 554 million CFX.
Q: Are the locked tokens gone forever?
A: No—the locked tokens are temporarily frozen and will become available after August 2021. However, there's no obligation for holders to sell once unlocked.
Q: Can I verify the burn and lockup transactions myself?
A: Yes—all transaction hashes and wallet addresses are publicly listed and can be checked using blockchain explorers.
Q: Will Conflux continue releasing quarterly reports?
A: Yes, the foundation commits to publishing financial disclosures every three months to ensure ongoing transparency.
Conflux’s first quarterly report sets a strong precedent for accountability in Web3. Through measurable actions like large-scale token burns and voluntary lockups, the project is proving that integrity and innovation can go hand-in-hand. As blockchain ecosystems mature, such practices will become essential for earning user trust and driving sustainable growth.
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