The Klaytn and Finschia blockchains are set to merge.

First mentioned in a joint proposal, the integrated blockchain, a result of merging Finschia and Klaytn, will connect Web3 assets based on LINE and Kakao messengers.

The results is an expansive ecosystem with over 250 million user touchpoints in Asia.

The platform will service 420 DApps and services, 45 governance partners, and over 450 Web3 resources.

Why Merge?

According to Klaytn's release, 2024 holds significance for the blockchain industry, with the approval of Bitcoin ETFs and the widespread adoption of AI, marking a rapid transition to Web3.

Despite the Asian market driving a substantial 34% of global GDP and 77% of cryptocurrency trading volume, the market capitalisation of Asian blockchains remains at 5%, indicating an untapped sector.

The proposed integration of Finschia and Klaytn seeks to address this gap, combining the strengths of Asia's largest product and infrastructure assets.

This integration aims to maximise synergy, combining Klaytn's networks in Korea, Singapore, and Vietnam with Finschia's strong presence in Japan, Taiwan, Thailand, and Abu Dhabi.

The interoperability between Klaytn's DeFi and gaming services and Finschia's NFT, payment, and AI services is expected to create new Web3 infrastructures, enhancing scalability and liquidity of tokens across major Asian countries.

PDT Token Launch

A new integrated token, tentatively named PDT, will be issued, allowing holders of KLAY and FNSA to claim and use it on both LINE and Kakao messengers.

The tokenomics of PDT will undergo an overhaul, with approximately 24% of the total supply being burned, and the uncirculated supply permanently removed.

The inflation rate will be reduced to 5.2%, and a new 3-Layer burning model will be introduced for sustained growth.

The integrated blockchain will leverage Ethereum (EVM) and Cosmos (CosmWasm) technologies, promising unparalleled compatibility and high performance.

Governed by over 45 entities, it intends to form the largest Web3 governance structure in Asia, emphasizing decentralization through the expansion of participating entities and enhanced community delegation functions.

The proposed schedule includes simultaneous posting of Klaytn and Finschia proposals on January 16, 2024, followed by the start of governance voting on January 26, and concluding on February 2, 2024.

If approved, the teams plan to establish an integrated foundation within the second quarter, initiate the new integrated token swap, complete governance integration, and launch new business initiatives for the integrated mainnet.

Post-merger, the ensuing blockchain will purportedly be Asia's largest blockchain ecosystem.

Klaytn

Earlier this month, Klaytn collaborated with CREDER, a digital transformation firm in South Korea to launch a gold-backed token, $GPC.

Named Goldstation, it is part of Klaytn's commitment to expanding their focus on metal RWA tokenisation projects globally.

Finschia

Finschia is the successor to the now-defunct LINE blockchain.

Independently developed since 2019, the project currently collaborates with industry heavyweights such as SoftBank Corp, NAVER, and YG Plus to advance NFT and Web3 solutions for user engagement.