What is Conflux (CFX)?

Deep Dive

1. Technology & Architecture

Conflux uses a Tree-Graph consensus mechanism to process blocks in parallel, resolving congestion while maintaining decentralization. Its dual Proof-of-Work (mining) and Proof-of-Stake (staking) layers balance security and scalability, achieving transaction finality in under 1 minute.

The blockchain is EVM-compatible, allowing developers to deploy Solidity-based smart contracts seamlessly. Innovations like fee sponsorship let third parties pay transaction costs, enabling users with empty wallets to interact with apps.

2. Tokenomics & Governance

The $CFX token powers network operations:
- Transaction fees: Paid in CFX.
- Staking: Users earn ~4% annual rewards via built-in staking.
- Governance: Holders vote on protocol upgrades.

Supply is managed through token burns (e.g., 76M CFX burned in May 2025) and staking locks (500M CFX staked), tightening liquidity to incentivize long-term holding.

3. Key Differentiators

• Regulatory compliance: The only Chinese public blockchain endorsed for pilot projects (e.g., state-backed stablecoins).
• Cross-chain interoperability: ShuttleFlow bridge enables asset transfers between Ethereum, BSC, and other chains.
• Enterprise adoption: Partnerships with McDonald’s China, China Telecom, and fintech firms for real-world asset (RWA) tokenization.

Conclusion

Conflux merges regulatory alignment with technical innovation, positioning itself as a bridge between Asian markets and global blockchain ecosystems. Its focus on compliant stablecoins and high-throughput infrastructure raises a critical question: Can it balance decentralization with state-backed use cases to become a cornerstone of Web3 in regulated economies?