What is Conflux ($CFX) and How Does It Work? Full Breakdown and Price Analysis

As the blockchain space evolves, scalability and decentralization remain two of its most persistent challenges. Conflux Network ($CFX) positions itself as a Layer-1 solution that addresses these issues head-on with its unique architecture and incentive mechanisms. 

With CFX recently surging over 90% in 24 hours and trading at $0.23, market interest has reignited in what many consider a technically robust yet under-the-radar project.

In this article, we dive into what Conflux is, how it works, and what could shape CFX’s price moving forward.

Read Also: How to Buy Conflux (CFX)

Key Takeaways

• Conflux Network is a Layer-1 blockchain using a novel Tree-Graph consensus mechanism to allow faster throughput and higher scalability.
• The protocol combines Proof of Work (PoW) and Proof of Stake (PoS) for network security and governance.
• Its native token, CFX, powers transactions, staking, and governance, with a circulating supply of 5.11 billion.
• CFX is up over 90% in the last 24 hours, driven by renewed interest in real-world asset (RWA) infrastructure and East Asia-focused chains.
• DAO-based governance allows the community to adjust inflation, rewards, and burn rates dynamically.

What is Conflux?

Conflux Network is a public, permissionless Layer-1 blockchain optimized for high throughput, low fees, and decentralized security. Designed with Tree-Graph consensus, it processes blocks and transactions in parallel, giving it a theoretical speed of up to 6,000 TPS—far beyond Ethereum and Bitcoin.

What sets Conflux apart is its dual-consensus model. It starts with Proof of Work (PoW) to secure the base layer, then integrates Proof of Stake (PoS) to introduce governance and reduce centralization risks. Smart contracts on Conflux are written in Solidity and are fully compatible with the Ethereum Virtual Machine (EVM), allowing seamless migration for developers.

How Does Conflux Work?

Tree-Graph Consensus

At the core of Conflux is Tree-Graph—a consensus model that merges the security of PoW with the efficiency of DAG-like structures. Unlike traditional chains that process blocks linearly, Tree-Graph allows multiple blocks to be confirmed simultaneously, increasing scalability and decreasing latency.

PoW + PoS Hybrid

PoW miners create new blocks and earn rewards, while PoS validators stake CFX to secure the network and earn interest. This hybrid design helps balance decentralization and efficiency.

Governance via DAO

The Conflux DAO governs key parameters such as mining rewards, staking yields, and burn ratios. Voters can dynamically adjust:

• powBaseReward: Mining reward per block (currently 1 CFX/block)
• interestRate: Base rate for PoS yields
• storagePointProp and baseFeeShareProp: Parameters that control token burn mechanics

Read Also: What Is Manyu and How Does It Work?

CFX Tokenomics and Economic Model

Initial Distribution

From its genesis block, Conflux distributed 5 billion pre-mined CFX as follows:

• 12% to private investors (vested over 2 years)
• 36% to founding teams (vested over 4 years)
• 40% to ecosystem development
• 8% to the community fund
• 4% to the Foundation for long-term support

Operational Phase

CFX inflation is currently ~1.9% annually:

• 63M CFX from PoW rewards (1 CFX per block, every 0.5 seconds)
• 44M CFX from PoS staking yields (12.9% APY)
• Token burns from storage conversion and base fee mechanisms reduce circulating supply over time

Why Is CFX Up Today?

CFX is up over 90% in the past 24 hours, trading around $0.23 with $1.8 billion in volume. Key reasons for the surge include:

• Renewed focus on RWA (Real World Asset) infrastructure, where Conflux’s compliance-friendly positioning in Asia plays well
• Speculation around a potential CFX ecosystem expansion
• Increased staking activity and token velocity as more users interact with the protocol
• Technical momentum, with the price rebounding strongly from long-term support

Conflux reached an all-time high of $1.70 in March 2021. It’s still down over 86% from that level, but recent momentum may signal a reversal if adoption continues.

What Could Affect CFX’s Future Price?

Several catalysts and risks could impact the price trajectory of CFX:

• Ecosystem Growth: More DeFi, NFT, and RWA projects choosing Conflux would drive demand for CFX
• Regulatory Environment: Conflux’s China-friendly stance may be a double-edged sword if geopolitical tensions rise
• Tokenomics Adjustments: Changes in PoW or PoS rewards through DAO voting could influence inflation and staking yield
• Market Sentiment: As a high-beta token, CFX will react more aggressively than BTC/ETH to both rallies and corrections

Final Thoughts

Conflux Network is quietly proving it can scale Ethereum-compatible apps without compromising decentralization or speed. With its hybrid PoW/PoS model, active DAO governance, and explosive recent price action, CFX is now back on the radar of both retail and institutional investors.

That said, CFX remains a volatile asset with macro and protocol-specific risks. But if current trends hold, Conflux could emerge as one of the more sustainable Layer-1 platforms built for long-term adoption.

Read Also: What is Housecoin (HOUSE)? Dive into the Tokenomics

FAQs

What is Conflux Network used for?

It powers dApps, DeFi protocols, NFT platforms, and tokenized real-world assets with high scalability and low fees.

How do I buy CFX?

You can buy CFX on major exchanges like Binance, KuCoin, and Gate.io using USDT or other trading pairs.

Is CFX inflationary?

Yes, but inflation is moderate (~1.9% annually) and offset by token burns and staking incentives.

Can I stake CFX?

Yes. By becoming a PoS validator or staking with a pool, you can earn interest on your CFX holdings.

Is Conflux EVM-compatible?

Yes. It supports Solidity and works with existing Ethereum tools and wallets, making it easy for developers to build or migrate apps.