Question 1

What is CFX?

Accepted Answer

CFX is the native asset of the Conflux network, rather than an ordinary contract token deployed on the chain. It serves as the network's base unit of account and transfer asset, and is also used to pay resource fees, incentivize network maintainers, and participate in DAO-related governance.

Question 2

Why do I need CFX to use Conflux?

Accepted Answer

When initiating a transfer or calling a smart contract in Core Space, executing the operation consumes computational resources, and users pay Gas in CFX. The final fee is determined by the Gas actually consumed by the transaction and the applicable Gas price; therefore, more complex contract calls generally consume more resources than simple transfers. Gas fees are not payments for a single purpose: a transaction includes a base fee and a possible priority fee. The priority fee and part of the base fee are paid as miner rewards, while the remainder of the base fee is burned according to network parameters.

Question 3

How is CFX related to on-chain storage?

Accepted Answer

CFX is related to on-chain storage because long-term occupation of state storage requires corresponding storage collateral. When an application or account writes data on-chain, the network uses this mechanism to measure continuously occupied resources, rather than charging only for one-time transaction execution. If storage collateral is covered by a sponsorship mechanism, a portion of CFX can be burned and converted into Storage Points, permanently leaving circulation; the conversion ratio is determined by parameters managed by the DAO. Therefore, the storage mechanism affects both an application's resource costs and potentially CFX's circulating supply.

Question 4

How does CFX support network operations?

Accepted Answer

CFX supports Conflux operations through two types of network-maintenance incentives. PoW miners receive new block rewards after successfully mining blocks, as well as transaction priority fees and part of the base fee; PoS validators stake CFX and earn interest under the staking mechanism. The sources and conditions of the two types of rewards differ: PoW rewards correspond to block production, while PoS interest is associated with staking participation. Both are part of new issuance during network operation. Specific distribution parameters can be adjusted by the DAO, and historically displayed reward figures should not be treated as promises of fixed returns.

Question 5

What governance can CFX holders participate in?

Accepted Answer

CFX can be used for on-chain governance in the Conflux DAO. One focus of governance is influencing economic parameters that affect token issuance and burning. The DAO manages related votes through ParamsControl, rather than merely expressing views on abstract issues. Governable parameters listed in the documentation include the PoW base block reward powBaseReward, the PoS base interest rate interestRate, the proportion of storage sponsorship converted into Storage Points storagePointProp, and the proportion of transaction base fees split between burning and miner allocation baseFeeShareProp. Parameter changes can affect reward or burn rules; they do not mean holders receive fixed returns.

Question 6

What is the Drip unit?

Accepted Answer

Drip is the smallest unit of CFX. 1 CFX = 10^18 Drip, so on-chain amounts can be represented precisely as integer Drip values; wallet interfaces typically convert the integer into a more readable CFX amount. For example, an amount displayed as 0.5 CFX can be represented at the underlying level as 5×10^17 Drip. Unit conversion changes only the display format, not the amount of assets represented.

Question 7

How is CFX supply formed?

Accepted Answer

CFX supply is shaped jointly by genesis allocations, issuance during network operation, and burning. The genesis block contains 5 billion pre-mined CFX, with different release schedules for categories including investors, the foundation, the genesis team, the community fund, and the ecosystem fund; during operation, CFX is added through PoW block rewards and PoS interest. At the same time, a portion of storage sponsorship collateral is burned when converted into Storage Points, and the portion of transaction base fees not allocated to miners is also burned. Therefore, “issuance” should be distinguished from “changes in circulating supply”: new rewards increase issuance, while burns permanently remove tokens from circulation; key parameters on both sides can be adjusted by the DAO.

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