• The Klaytn Foundation and Finschia Foundation proposed a merger to create a Web3 powerhouse in Asia.
• The integration proposal, presented on January 16, initiates a discussion period, followed by a voting phase from January 26 to February 2, 2024.
• The new blockchain solution, designed for compatibility with EVM and CosmWasm, will introduce a native coin to replace KLAY and FNSA, emphasizing sustainable value creation through innovative tokenomics.

The Klaytn Foundation, the entity behind Layer 1 blockchain Klaytn, and Finschia Foundation, the operator of the Finschia blockchain, proposed merging to create a web3 powerhouse in Asia. 

Klaytn x Finschia

On January 16, the two blockchain foundations formally presented the integration proposal to their respective governance members. This action initiates a period of discussion and consideration, followed by a voting phase scheduled from January 26 to February 2, 2024.

In a statement, the two firms emphasized that the proposed ecosystem will serve as a platform for 420 decentralized applications (DApps) and will accommodate 250 million wallets integrated with Kakaotalk and LINE—both huge messaging platforms used across Asia. 

“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,” Klaytn Foundation and Finschia Foundation stated.

Moreover, this new advanced blockchain solution, designed to maintain compatibility with both the Ethereum Virtual Machine (EVM) and CosmWasm, will also introduce a new native coin to replace KLAY and FNSA, thereby enabling holders to exchange their existing assets upon the issuance of the new currency.

The press release disclosed that the tokenomics of the new coin emphasize sustainable value creation, incorporating a lower base inflation rate and a 3-layer burning model for potential deflation. Furthermore, 24% of the new coins will be immediately burned, implementing Zero Reserve Tokenomics. 

In addition, they pointed out that the governance structures of Klaytn and Finschia will merge, forming Asia’s largest decentralized Web3 governance with 45 leading global enterprises. 

Post-Merge Plans

According to the media release, after merging the unified foundation intends to leverage strategic collaborations in Japan, South Korea, and Southeast Asia to facilitate expansion across real-world asset (RWA) tokenization, game finance (GameFi), and decentralized finance (DeFi).

Moreover, it will develop messenger-based web3 services, a digital commerce platform, and act as a hub for Asia’s IT and entertainment enterprises with access to Kakaotalk and LINE users. 

The firms also expect the merger to create the largest web3 business network in Asia. 

Following the merger, immediate attention will be directed towards crucial business initiatives, including the development of infrastructure to cater to institutional investors, bolstering DeFi capabilities with the launch of a native stablecoin, and discovering and integrating AI-based DApps. 

The two blockchains also aim to improve the onboarding infrastructure for web2 companies to transition their digital items and platforms onto the blockchain, welcome top-tier Japanese gaming companies and web3 projects with global intellectual property, and foster communities of holders, developers, and partners in various Asian countries. 

“We will give our best to make this merge an opportunity to innovate and lead the Asian blockchain industry in both technology and adoption,” the two foundations added.

News on Klaytn

Last year, Klaytn Foundation’s Paulo Caperig, the Community Lead, and Sooyoung “Eddie” Kim, the Senior Manager of Blockchain Governance & Business Development, discussed the company’s expansion into gaming, real-world asset tokenization, and central bank digital currencies (CBDCs) during a special interview at the Yield Guild Games Web3 Games Summit with BitPinas.

In 2020, cryptocurrency exchange Huobi joined Klayton’s Governance Council, a group focused on advancing the development of the Klaytn blockchain for global mass adoption. Members of the council play a crucial role in decision-making and contribute to the development and implementation of Klaytn-based applications. Other members of the governance council include gumi Cryptos, UnionBank of the Philippines, KakaoPay, GroundX, and LG International.

This article is published on BitPinas: Klaytn, Finschia Propose Chain Merge for Asia’s Top Blockchain

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