Asia’s Two Leading Public Chains to Merge! Klaytn and Finschia by LINE Collaborate on Merger Proposal, Creating Asia’s Premier Blockchain

Asia's Two Leading Public Chains to Merge! Klaytn and Finschia by LINE Collaborate on Merger Proposal, Creating Asia's Premier Blockchain

Asia's Two Leading Public Chains to Merge! Klaytn and Finschia by LINE Collaborate on Merger Proposal, Creating Asia's Premier Blockchain

Kakao, a South Korean communication software company, and Finschia, a public chain under LINE, jointly proposed a mainnet merger plan to their respective governance members and communities on Tuesday (16th). The goal is to merge Klaytn and Finschia to create a leading blockchain in Asia and accelerate the large-scale application of Web3 in Asia.

According to the announcement by Finschia, although the Asian market accounts for 34% of global GDP and 77% of cryptocurrency trading volume, the market value of Asian blockchain only accounts for 5%. This indicates fragmentation in this field and its underutilization. Klaytn and Finschia hope to achieve significant growth by integrating their ecosystems and resources through the integration project called “Project Dragon”.

According to the announcement, the integrated blockchain will inherit and connect Web3 assets based on LINE and Kakao communication software, thereby creating a powerful ecosystem with over 250 million user touchpoints in Asia. In addition, the blockchain will also cover “over 420 decentralized applications (DApps) and services, over 45 governance partners, and over 450 Web3 resources (foundations and major participants based on the ecosystem)”.

The integration of the ecosystem will maximize the synergistic effects of the two entities, as stated in the Finschia announcement. The integrated blockchain will issue a new integrated token, tentatively named PDT. Holders of Finschia’s native token $FNSA and Klaytn’s $KLAY token will be able to claim this new token. The announcement also pointed out that the integrated blockchain will combine Ethereum (EVM) and Cosmos (CosmWasm) technologies to “provide a network with new compatibility and high efficiency”. Its governance will involve more than 45 companies, forming the largest Web3 governance in Asia.

The merger proposal is expected to be voted on between January 26th and February 2nd. If the proposal is approved, Finschia and Klaytn plan to “establish an integrated foundation, launch a new token exchange, complete governance integration, and introduce new business plans for the merged mainnet” in the second quarter.

Following the release of the proposal, the prices of $FNSA and $KLAY tokens have both surged significantly. According to TradingView data, FNSA token rose from around $29 to $35, with an increase of approximately 24% in the past 24 hours. KLAY token, on the other hand, rose from $0.2 to $0.24, with an increase of approximately 26% in the past 24 hours.