Klaytn, a Layer 1 blockchain supported by South Korea’s internet powerhouse Kakao, and Finschia, a prominent Japanese blockchain developed by the messaging giant LINE, have unveiled plans blockchain merger their with respective blockchains. This ambitious venture aims to forge what could be the largest web3 ecosystem in Asia.
The Klaytn Foundation and the Finschia Foundation announced their intentions to create a novel blockchain that will be compatible with both the Ethereum Virtual Machine (EVM) and CosmWasm frameworks. Additionally, these foundations are set to unite into a single entity, pending approval of the proposed merger.
This new mainnet is poised to blend Klaytn’s integration with KakaoTalk and Finschia’s with LINE, effectively tapping into a vast user base that encompasses over 250 million digital wallets and supports more than 420 decentralized applications. Given the widespread popularity of Kakao and LINE as messaging platforms in Asia, this merger holds significant potential.
The envisioned public blockchain is not just a technological feat; it’s also set to be a pivotal platform for the IT and entertainment sectors across Asia, leveraging the extensive reach of every KakaoTalk and LINE user.
The stakeholders have scheduled a vote on this blockchain merger from January 26 to February 2.
Accompanying this merger is the proposal of a new token, intended to supersede the existing KLAY and FNSA tokens. Holders of these coins will have the opportunity to exchange them for the new token upon its release.
Following the merger announcement, the value of KLAY witnessed a significant surge of 31.8%, reaching $0.25, as recorded at 2:20 p.m. Hong Kong time. Similarly, FNSA experienced a 22.6% rise, trading at $34.74, according to data from The Block.
The new tokenomics, shaped by the combined expertise of both foundations, will primarily aim at fostering sustainable value. This will be achieved through a lower base inflation rate and a three-tiered burning model, which is designed to encourage deflation as network activity escalates.
In a notable strategy, the foundations plan to incinerate 24% of the issued new coins, embracing what they refer to as “Zero Reserve Tokenomics.”
The foundations expressed their excitement about this merger, recognizing it as a strategic move to harness the immense potential synergy resulting from the union of public blockchains initiated by two of Asia’s leading IT companies, Kakao and LINE.
