Kakao-backed Klaytn and LINE-developed Finschia are considering a merger to build Asia’s largest web3 ecosystem.
The Klaytn Foundation and Finschia Foundation are proposing the integration of Klaytn and Finschia, creating a blockchain network supporting Ethereum Virtual Machine (EVM) and CosmWasm frameworks. The merger includes combining foundations into a single organization responsible for development and governance.
“We weren’t joking when we said 2024 is going to be wild – we’ve just submitted a governance proposal to merge the #Klaytn and @finschia blockchains to create Asia’s largest Web3 ecosystem!”
We weren’t joking when we said 2024 is going to be wild – we’ve just submitted a governance proposal to merge the #Klaytn and @finschia blockchains to create Asia’s largest Web3 ecosystem! Details below 🧵https://t.co/rNsqxxjBsj pic.twitter.com/mvJHPGdYof
— Klaytn (@klaytn_official) January 16, 2024
The upcoming mainnet aims to unite Klaytn’s integration with KakaoTalk and Finschia’s integration with LINE, serving over 250 million digital wallets and 420+ decentralized apps.
“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,” the companies said.
The voting period is scheduled from January 26 to February 2.
The merger plans to introduce a new token, replacing existing KLAY and FNSA tokens. Holders can swap existing tokens for the new one. Following the announcement, the KLAY token’s price surged 31.8%, reaching $0.25, and the FNSA token increased by 22.6% to $34.74.
“Drawing on the combined experience of both foundations, the proposed tokenomics for this new native coin will focus heavily on delivering sustainable value creation,” the companies said.
“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.”
As part of the merger, Klaytn and Finschia foundations intend to burn 24% of the new tokens, implementing a “Zero Reserve Tokenomics” model.
“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,” the foundations said.
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