CFX is the native cryptocurrency of Conflux, which operates as a permissionless Layer 1 blockchain. $CFX is used for transaction fee payment, staking rewards, mining rewards, and network governance on the network ^[1][2]

Tokenomics

$CFX token was introduced in November 2020. Each CFX currency is made up of smaller units called drips, which are equivalent to Gwei on the Ethereum network or Satoshis in Bitcoin. ^[4]

A single CFX crypto coin has 10^18 drips. In order to initiate a transaction on the Conflux Network, users are required to pay a nominal amount of drip as a transaction fee. This fee is subsequently granted to system maintainers, commonly referred to as miners. ^[4]

Conflux Network has a total supply of 5 billion pre-mined CFX tokens used to reward developers and contributors to the ecosystem. 40% of the supply was allocated to ecosystem funding, 36% was allocated to the Genesis Team, 12% to private equity funders, 8% to community funding, and 4% was allocated to public funding. ^[4][5]

Utility

Users are required to stake CFX tokens to participate in the Conflux community's governance and exercise voting rights. Apart from voting, token holders who stake CFX have the opportunity to earn passive income. CFX is also utilized for gas fees, enabling users to execute smart contracts on the blockchain. ^[4][7]

Developers can make use of CFX tokens to power decentralized applications. Finally, CFX is used to incentivize miners on the Conflux network in the form of transaction fees, block rewards, and interest from developers' locked tokens. ^[4][7]