Building Asia’s largest Web3 ecosystem
The Klaytn Foundation, which is committed to developing the Klaytn ecosystem, a major Korean Layer 1 blockchain, announced on the 16th a partnership plan with the Finschia Foundation, which operates the Finschia blockchain developed by LINE Tech Plus.
The plan aims to merge two existing blockchains into a new mainnet and significantly contribute to the development of Asia’s Web3 ecosystem. The merger proposal has been submitted to the governance members of each organization, and discussions and voting will take place from January 26th to February 2nd, 2024.
If approved, the leading blockchains of Korea and Japan will become one, creating a powerful ecosystem. It is expected to incorporate more than 420 dApps and more than 250 million* wallets integrated through KakaoTalk and LINE, popular messaging platforms in both countries. *Total monthly active users (MAU) of Kakao and LINE in major countries.
Additionally, the two foundations will be integrated, bringing together technology, services, and a business network with many strategic partners, including Kakao and LINE.
What is Finschia?
An open network released in December 2022 by LINE TECH PLUS PTE. LTD., a subsidiary of LINE Xenesis, which operates LINE’s blockchain-related business and crypto asset business. Its operation was later transferred to the Finschia Foundation, which was established in Abu Dhabi in March 2023 as part of the “Token Economy 2.0” strategy that utilizes the crypto asset FINSCHIA (FNSA).
▶️Virtual currency glossary
connection:Korean blockchain Klaytn promotes real-world asset (RWA) tokenization
New blockchain concept
The proposed new blockchain will be compatible with EVM (Ethereum Virtual Machine) and CosmWasm, inheriting the best of both Klaytn and Finschia. The existing KLAY and FNSA tokens will be replaced by the new native coin. Existing holders will be able to exchange it for the new blockchain’s native coin.
Tokenomics has been improved, with emphasis on transparency and stability. As part of adopting a zero reserve policy, 24% of newly minted coins (representing the majority of uncirculated KLAY) will be immediately burned. Following the announcement, KLAY’s price rose 25% from the previous day.
The new public blockchain, which will be accessible to all KakaoTalk and LINE users, is also expected to serve as the Web3 foundation for IT and entertainment companies in Asia. This merger is expected to create Asia’s largest Web3 business network.
Klaytn’s governance members and Finschia’s governance members will also be combined to create Asia’s largest decentralized Web3 governance structure comprising 45 major global companies. There are plans to expand the number of governance members to up to 100.
Once the integration is achieved, we will work with partners in Japan, South Korea, and Southeast Asia to expand the ecosystem in areas such as RWA (real-world assets) tokenization, GameFi, and DeFi (decentralized finance). Additionally, the company will focus on developing messenger-based Web3 services and digital commerce platforms.
Other business plans include infrastructure development to increase accessibility for institutional investors, the launch of its own stablecoin, and the discovery and onboarding of AI-based dApps. This move will accelerate the further development and spread of Web3 technology in Asia.
Virtual currency exchanges that handle KLAY are:Check the stocks handled by each exchange.
connection:Finschia governance model evolves, SoftBank and LINE participate