By
Godfrey Benjamin
April 26th, 2024
This merger is poised to create the largest Web3 business network in Asia, fostering communities of holders, developers, and partners in each Asian country.
Klaytn and Finschia Foundations have announced a joint proposal for a merger, seeking to create a new mainnet that not only boasts technological superiority but also envisions becoming Asia’s premier 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
Objectives of Klaytn and Finschia’s Merger
The proposal, open for discussion with governance voting scheduled from January 26 to February 2, aims to consolidate the foundations into a single entity, combining their technological prowess, services, and extensive business networks.
The primary objective of this proposed merger is to establish a new industry leader with a cutting-edge blockchain supporting both Ethereum Virtual Machine (EVM) and CosmWasm. This aims to attract Ethereum and Cosmos builders, capitalizing on the strengths of each ecosystem for enhanced interoperability.
The mainnet aspires to create one of the most extensive Decentralized Application (DApp) ecosystems in Asia, bringing together South Korea and Japan’s leading blockchains, resulting in over 420 DApps.
Additionally, the proposed deal will see the merger of Klaytn’s robust networks in Korea, Singapore, and Vietnam with Finschia’s strong presence in Japan, Taiwan, Thailand, and Abu Dhabi. This strategic integration will enable interoperability between Klaytn’s Decentralized Finance (DeFi) and gaming services and Finschia’s NFT, payment, and AI services.
As part of the merger, the team noted that a new integrated token, provisionally named PDT, will be issued. Holders of KLAY and FNSA will be able to claim this new token, usable on both LINE and Kakao messengers. The integrated token will feature a revamped tokenomics, with approximately 24% of the total supply burned, reducing the inflation rate to 5.2%. A new 3-Layer burning model will be introduced to sustain growth and ensure a balanced token ecosystem.
“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 Klaytn Foundation and Finschia Foundation said in a joint statement. “We will give our best to make this merger an opportunity to innovate and lead the Asian blockchain industry in both technology and adoption,” added the companies.
Business Initiatives and Expansion Plans
Should the proposal pass both Klaytn and Finschia’s governance voting processes, the foundations will immediately begin work on the chain merge and subsequent business initiatives.
This includes infrastructure development for institutional investors, strengthening DeFi infrastructure with the launch of a native stablecoin, discovery, and onboarding of AI-based DApps, and enhancing the onboarding infrastructure for Web2 companies.
Furthermore, the foundations will continue to develop messenger-based Web3 services and the digital commerce platform, acting as a springboard for Asia’s IT and entertainment enterprises. This merger is poised to create the largest Web3 business network in Asia, fostering communities of holders, developers, and partners in each Asian country.
To address questions regarding this proposal, representatives from the two foundations will answer inquiries at the upcoming Klaytn Community Town Hall on Friday, January 19.
