Klaytn and Finschia Jointly Propose a Chain Merge to Create Asia’s Leading Blockchain Ecosystem
Klaytn Foundation is partnering with Finschia Foundation, the operator of the open blockchain and Web3 business developed by LINE Tech Plus, to propose the launch of a new mainnet project through the integration of the two blockchain ecosystems. To this end, the two foundations have submitted their proposals to their respective governance members for open discussion, with voting scheduled from 26 January till 2 February. The governance proposal submitted by Klaytn Foundation can be viewed on the Klaytn Governance Forum.
The chain merge is designed to create a highly competitive mainnet ecosystem by integrating the capabilities of Klaytn and Finschia. The two foundations will form an integrated organization, sharing technologies, services, and business networks, working alongside Kakao, LINE, and other partners who have contributed to the development and ecosystem expansion of their respective mainnets. By doing so, we plan to establish ourselves as Asia’s largest Web3 ecosystem, taking the lead to drive blockchain mass adoption in the region.
The creation of Asia’s largest Web3 ecosystem
Klaytn’s robust technical infrastructure and strong presence in South Korea, Singapore, and Vietnam, will be combined with Finschia’s comprehensive service network that is popular in Japan, Taiwan, Thailand, and Abu Dhabi. Post-merge, Klaytn’s DeFi and gaming services and Finschia’s NFT, payment, and AI services will come together to create a massive ecosystem of 420+ DApps and services, 45+ governance partners, and 450+ Web3 resources (based on foundations and key ecosystem participants) – the largest Web3 network in Asia. The merged blockchain will also inherit integration with both Kakao and LINE messengers, creating a powerful ecosystem with over 250 million potential Asian user touchpoints.
We expect the integration of Klaytn and Finschia to be a catalyst for the creation of new Web3 infrastructure in key Asian countries and supercharge scalability and liquidity.
Post-merge, the unified foundation will continue to pursue ecosystem expansion in the RWA tokenization, GameFi and DeFi verticals through collaborations with Japanese, South Korean, and Southeast Asian partners, while continuing to develop messenger-based Web3 services and the digital commerce platform. With access to every Kakaotalk and LINE user, the new public blockchain will also act as a springboard for Asia’s IT and entertainment enterprises.
Should the proposal pass both Klaytn and Finschia’s governance voting processes, the two foundations will immediately begin work on the chain merge, as well as the following business initiatives:
- Strengthening of the DeFi infrastructure and launch of a native stablecoin
- Discovery and onboarding of AI-based DApps
- Enhancing the onboarding infrastructure for Web2 companies to bring their digital items, memberships, ticketing platforms and more on-chain
- Onboarding of top-tier Japanese gaming companies and Web3 projects featuring global IP
- Cultivating of communities of holders, developers, and partners in each Asian country
Improved tokenomics focused on sustainable value creation
With the chain merge, KLAY and FNSA, the native coins of the two blockchains, will be replaced by a new native coin which will be issued based on the combined total amount of KLAY and FNSA. All KLAY and FNSA holders will be able to swap for the new coin upon issuance.
Drawing on the combined experience of both foundations, the proposed tokenomics for this new native coin will focus heavily on delivering sustainable value creation. This will be achieved via a lower base inflation rate and a 3-layer burning model designed to drive the coin towards deflation as network activity increases.
Additionally, 24% of the new coins issued—equivalent to the bulk of non-circulating KLAY—will be immediately burned to implement Zero Reserve Tokenomics, providing holders with greater certainty. Instead of operating off of reserves, the new foundation will operate transparently via an ecosystem fund and an infrastructure fund that are continuously replenished via block rewards.
Enhanced governance, decentralization, and interoperability
The respective governance of Klaytn and Finschia will also be unified to enhance user and community delegation capabilities. The permissionless node validation system that the Klaytn Foundation has been promoting will also be implemented, creating a transparent, trusted, and open ecosystem.
To support the seamless migration of existing DApps and services on both Klaytn and Finschia, the proposed new blockchain will support both EVM and CosmWasm. This makes it accessible to both Ethereum and Cosmos builders, allowing them to leverage the technological advantages of each while enabling greater interoperability between the two ecosystems.
“We are excited to be taking the first step toward unlocking the enormous synergy of merging the public blockchains started by Kakao and LINE, which are both leading IT companies in Asia,” said Klaytn Foundation and Finschia Foundation. “We will give our best to make this merge an opportunity to innovate and lead the Asian blockchain industry in both technology and adoption.”
With such a major change being proposed, the two foundations have arranged for the upcoming Klaytn Community Town Hall on Friday, January 19th to provide an opportunity for open dialogue and clarifications with our communities. More information on this Town Hall will be shared on the official community and social platforms of Klaytn and Finschia Foundation.
About Finschia Foundation
The Finschia Foundation is an independent non-profit organization, based in Abu Dhabi, UAE, established in March 2023 to expand public blockchain and Web3 technologies. Inheriting the philosophy of LINE Blockchain’s “Blockchain for All”, the Foundation operates its third-generation public blockchain mainnet Finschia and crypto asset FINSCHIA (FNSA), and aims to achieve a sustainable token model with Web3 users around the world.