In a groundbreaking move, the Klaytn Foundation and Finschia Foundation, architects of South Korea’s Klaytn and Japan’s Finschia blockchains respectively, have joined forces to propose a merger of their existing blockchains. The integration proposal, set to be discussed among governance members, aims to birth a new mainnet that not only boasts technological superiority but also envisions becoming Asia’s premier Web3 ecosystem. The proposal, slated for discussion from January 26 to February 2, 2024, seeks to unify the foundations into a single entity, consolidating their technological prowess, services, and extensive business networks.
The primary objective of this proposed merger is to create a new industry leader with a cutting-edge blockchain supporting both EVM and CosmWasm. Additionally, the mainnet aspires to foster one of the most extensive DApp ecosystems in Asia. With strategic partnerships involving major players like Kakao, LINE, and other collaborators, the unified organization anticipates leveraging its combined strength to achieve this ambitious vision.
The amalgamation of Klaytn and Finschia, acknowledged as Web3 leaders in South Korea and Japan, is poised to establish Asia’s largest Web3 ecosystem. Envisaged to serve over 250 million digital wallets engaging with 420 DApps, the new mainnet inherits Klaytn’s integration with Kakaotalk and Finschia’s integration with LINE, ensuring a seamless Web3 experience for millions across Asia.
Upon completion of the merger, the consolidated foundation will persist in expanding its footprint in RWA tokenization, GameFi, and DeFi sectors. Collaborations with partners across Japan, South Korea, and Southeast Asia will drive these initiatives forward. Simultaneously, the foundation remains committed to developing messenger-based Web3 services and digital commerce platforms. The new public blockchain, acting as a springboard, will provide Asia’s IT and entertainment enterprises unprecedented access to Kakaotalk and LINE users, establishing the largest Web3 business network in the region.
Should the proposal garner approval through both Klaytn and Finschia’s governance voting processes, the foundations will embark on the chain merge. Concurrently, the following business initiatives will be set in motion:
- Infrastructure development to enhance institutional investor accessibility
- Strengthening DeFi infrastructure and launching a native stablecoin
- Discovery and onboarding of AI-based DApps
- Enhancing onboarding infrastructure for Web2 companies
- Onboarding top-tier Japanese gaming companies and global Web3 projects
Post-merge, the native coins KLAY and FNSA will be replaced by a new native coin, based on their combined total amounts. Tokenomics for the new coin will prioritize sustainable value creation, featuring a lower base inflation rate and a 3-layer burning model to encourage deflation. Additionally, a significant portion of the new coins will be immediately burned, implementing Zero Reserve Tokenomics for enhanced holder certainty. The governance structures of both foundations will amalgamate, creating Asia’s most extensive decentralized Web3 governance structure, comprising 45 leading enterprises.
The merged blockchain, supporting EVM and CosmWasm, aims to attract Ethereum and Cosmos builders, capitalizing on the strengths of each ecosystem for enhanced interoperability. The proposal emphasizes a commitment to openness and security, planning permissionless validation for network participation.
In a joint statement, the Klaytn and Finschia Foundations expressed excitement about unlocking the synergies resulting from merging the public blockchains initiated by Kakao and LINE. The foundations pledge to make this merger a pivotal moment, propelling the Asian blockchain industry forward in both technology and adoption. To address queries, representatives from both foundations will participate in the upcoming Klaytn Community Town Hall on January 19, 2024, providing further insights into this transformative proposal.
