The Japanese telecommunications giant LINE and the South Korean internet giant Kakao, through their respective blockchain platforms Finschia and Klaytn, have announced an unprecedented mainnet merger plan. In this article, we will introduce this event and the parties involved.
Summary:
LINE and Kakao propose a merger of their mainnets.
Background:
LINE’s third-generation blockchain mainnet Finschia is officially launched, and the non-custodial wallet DOSI Vault will be introduced.
Table of Contents:
Introduction to the basic situation of the two merging parties: decentralized trust blockchain platform Klaytn + blockchain ecosystem Finschia
Introduction to the collaboration: forming an ecosystem with 250 million wallet users and over 420 DApps
Deep integration of Kakao and LINE in the Web3 field is worth paying attention to, expecting more meaningful cooperation from other major players.
On January 16th, Finschia, launched by the Japanese telecommunications giant LINE, and Klaytn, owned by the South Korean internet giant Kakao, announced an unprecedented mainnet merger plan. This proposal, known as FGP-23, aims to integrate the mainnets of both parties to create a high-performance network that combines Ethereum (EVM) and Cosmos (CosmWasm) technologies. This is not only a technical integration but also a subversion of blockchain architecture.
After the merger, a new token will be created, tentatively named PDT. Finschia’s FNSA and Klaytn’s KLAY holders will have the opportunity to exchange for this new currency. It is worth noting that approximately 24% of the existing circulation will be destroyed, and the supply of the unreleased tokens will be permanently removed. This measure will reduce the inflation rate to 5.2% and introduce an innovative 3-Layer burn model to promote growth.
This merger is not only a technical integration but also a strategic alliance of the two blockchain giants. The voting will take place from January 26th to February 2nd (Beijing time). If approved, the two parties plan to establish an integrated foundation in the second quarter to promote new token exchange and governance integration. This move aims to build a leading Web3 ecosystem in Asia and usher in a new era of blockchain. The market has reacted strongly, with KLAY from Klaytn and FNSA from Finschia recording increases of 31.8% and 22.6% respectively, demonstrating the significant impact of this news on the industry. In the following sections, we will introduce this event and the parties involved.
Klaytn, as a service-centric enterprise-grade decentralized trust blockchain platform, has achieved significant achievements in the blockchain field. Its “hybrid” design combines decentralized data and control of public blockchains, decentralized governance, low latency, and high scalability of private blockchains. Klaytn has not only collaborated with many well-known brands worldwide but has also made contributions to building a reliable decentralized business platform. Its goal is to become the leading NFT and decentralized finance (DeFi) platform in Asia. In addition, Klaytn has collaborated with leading institutions worldwide to develop the foundational software platform for central bank digital currencies (CBDC).
Klaytn’s native functional token KLAY is used for network usage, mining, and minting NFTs. Since its establishment in 2020, the Klaytn Foundation has actively worked with its global governance council members to expand the ecosystem of the Klaytn global Layer 1 blockchain platform. The foundation promotes the adoption and development of new technologies, ensuring that Klaytn becomes an open, trusted, and sustainable blockchain platform for developers and users, and ensures the optimal expansion of the ecosystem in the rapidly changing blockchain environment.
At the same time, Finschia aims to establish the world’s leading blockchain ecosystem, dedicated to promoting the popularization of Web3 and serving over 1 billion users. As the successor to LINE’s blockchain, Finschia has been independently developed and operated since 2019. Starting from the third-generation mainnet, the Finschia Foundation inherits the vision and mission of LINE’s blockchain, focusing on the dynamic balance of service growth and token demand. FNSA is Finschia’s transactional cryptocurrency, which creates a virtuous cycle of adoption and network value increase through protocol-based inflation mechanisms.
Finschia’s goals include establishing a sustainable token model, building a community-centric ecosystem, and constructing a Web3 blockchain that can serve over 1 billion users. The Finschia Foundation, headquartered in Abu Dhabi, United Arab Emirates, is committed to expanding public blockchains and Web3 technologies and achieving sustainable token models together with global Web3 users.
1. Overview of the merger: Klaytn Foundation and Finschia Foundation propose a merger to establish Asia’s leading Web3 technology and ecosystem.
2. Objectives of the proposal: Unify the two major blockchain platforms in South Korea and Japan to create an ecosystem with 250 million wallet users and over 420 DApps.
3. Ecosystem and user base: The new blockchain after the merger will integrate the existing integration of Klaytn with Kakaotalk and Finschia with LINE, aiming to bring the Web3 experience into the daily lives of hundreds of millions of users.
4. Integration of technology and services: The new blockchain will be compatible with EVM and CosmWasm, inheriting the technical advantages of Klaytn and Finschia.
5. Future plans: Expand into fields such as tokenization of real-world assets (RWA), GameFi, DeFi, and develop Web3 services and digital commerce platforms based on instant messaging.
6. Business plans after the merger: Improve accessibility to infrastructure for institutional investors, strengthen DeFi infrastructure, launch native stablecoins, facilitate AI-assisted DApp discovery and onboarding, and help Web2 companies transition digital products, memberships, ticketing platforms, etc., to the blockchain.
7. New token economy and governance model: KLAY and FNSA will be replaced by new native tokens, based on a sustainable value creation model; 24% of the newly issued tokens will be burned, implementing a zero-reserve token economy; the governance members after the merger will expand to 45 global enterprises and can increase to 100 in the future.
8. Enhanced interoperability and open governance: The plan is to achieve permissionless validation, allowing anyone to participate as a network validator; improve interoperability between the two ecosystems supported by EVM and CosmWasm.
9. Future prospects and community involvement: The Klaytn and Finschia Foundations will provide detailed presentations of the proposal at community town hall meetings; the merger aims to promote the development and innovation of the Asian blockchain industry and open up new technological and application pathways.
The approval of this proposal will mark an important milestone in the Asian blockchain field, demonstrating the combined technical strength of the two blockchain platforms and their shared vision for the future Web3 ecosystem.
The renewed collaboration between Kakao and LINE, two Asian tech giants, signifies a new stage in their exploration and cooperation in the blockchain field. Looking back at history, we find that this is not the first time the two companies have worked together. As early as 2019, they collaborated in the gaming industry, jointly developing a mobile game based on the popular Japanese character Doraemon and planning to launch it in the Japanese market. This collaboration not only strengthened the position of the two companies in the gaming industry but also demonstrated their shared vision in seeking innovation and expanding markets.
Now, this spirit of collaboration extends to the blockchain field, as the two companies merge their respective blockchain platforms, Klaytn and Finschia, to move towards the Web3 era. This merger reflects the insights of the two companies into future technological development trends and their shared determination to build a powerful ecosystem. By combining their technological strengths and resources, Kakao and LINE can not only accelerate the development of Web3 technology but also better meet the growing demands of users.
It is worth noting that this collaboration is not only based on technical integration but also embodies a deep strategic fusion between the two companies. By combining Kakao’s strong market influence and LINE’s technological innovation capabilities, the new merged platform has the potential to become a leader in the Web3 field in Asia and even globally. Furthermore, this collaboration is also an investment and layout in the future digital economy by both companies, demonstrating their determination to innovate and seek breakthroughs in global competition.
To sum up, this collaboration between Kakao and LINE is not only a continuation of their past successful cooperation but also a new starting point for their exploration in the field of new technologies. With the continuous development and maturation of Web3 technology, we have reason to expect that this collaboration will bring more innovation and opportunities to the entire blockchain industry.
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