By
Chimamanda U. Martha
April 24th, 2024
Backed by South Korean internet giant Kakao and Japan’s messaging conglomerate LINE, Klaytn and Finschia are positioned to lead the way in blockchain innovation across Asia.
The Klaytn and Finschia have announced in a press release that they have received approval to merge their networks, paving the way for the creation of Asia’s largest Web3 ecosystem.
The joint proposal, which garnered overwhelming support from both governance members, aims to combine the strengths of Klaytn’s leading Layer 1 blockchain technology with Finschia’s expertise in digital asset operations.
Formation of Asia’s Leading Blockchain Network
The proposal, unveiled in January, saw resounding support from both Klaytn and Finschia governance members, with 90% and 95% voting in favor, respectively. With this merger, the integrated mainnet will boast approximately 420 Decentralized Applications (DApps) and over 45 governance member partners.
Youngsu Ko, Chairman of the Finschia Foundation Council, highlights the importance of this integration stating:
“There was no one blockchain network that represented the Asian market, and the level of community participation had much to be desired.”
“We plan to build Asia’s largest blockchain ecosystem with the diverse opinions from our partners and community that we gathered during the merger proposal process,” he added.
According to the announcement, the two foundations will establish a joint task force to oversee the seamless integration of their chains and the establishment of an integrated foundation in Abu Dhabi by the second quarter of this year.
This integration will involve adopting a single governance system and jointly operating the board, ensuring efficient operation and alignment of goals. Leveraging the technological expertise of both foundations, the merged blockchain will prioritize decentralization and interoperability, supporting both Ethereum Virtual Machine (EVM) and CosmWasm.
An important aspect of the merger involves the introduction of a new native coin to replace KLAY and FNSA, the native coins of Klaytn and Finschia, respectively. This new coin will feature updated tokenomics, with 22.9% of the existing token issuance, valued at $384 million, being burned.
Additionally, all non-circulating coins will be removed, enhancing transparency and market dynamics. Moreover, to increase community involvement, the merged chain will implement enhanced governance delegation and participation mechanisms.
Future Initiatives and Collaborations
Looking ahead, the integrated foundation plans to embark on various business initiatives aimed at driving innovation and growth in Asia’s blockchain industry.
These initiatives include infrastructure development to cater to institutional investors, collaboration with diverse partners, and the launch of native stablecoins. By fostering collaboration and innovation, Klaytn and Finschia aim to position themselves as pioneers in web3 innovation in the region.
Sam Seo, Representative Director at Klaytn Foundation, stated:
“In the process of fine-tuning the merge proposal, we have seen how much positive change can be made through sincere communication with ecosystem participants, including the holder community and governance council members. Together, we will build Asia’s best blockchain ecosystem that will create greater future value.”
Backed by South Korean internet giant Kakao and Japan’s messaging conglomerate LINE, Klaytn and Finschia are positioned to lead the way in blockchain innovation across Asia.