25 February, 2024

Klaytn and Finschia Combine Forces for a More Dynamic Blockchain Ecosystem

1 month ago

16 Jan, 2024

  • Klaytn and Finschia Foundations propose a merger to form a unified blockchain mainnet, potentially creating Asia’s largest Web3 ecosystem.
  • The merged blockchain will support both EVM and CosmWasm, aiming to enhance user experience and network capabilities.
  • The transition to a new native coin and the establishment of a large decentralized Web3 governance structure is central to the merger’s strategy.

Klaytn Foundation and Finschia Foundation, both key players in the blockchain arena from South Korea and Japan, have recently announced plans to merge their blockchains, Klaytn and Finschia, into a single, unified mainnet. This proposed merger aims to form what could be Asia’s largest Web3 ecosystem, uniting over 250 million digital wallets and a network of more than 420 decentralized applications (DApps).

The merger is focused on creating a blockchain that supports both Ethereum Virtual Machine (EVM) and CosmWasm, aiming to leverage the strengths of both technologies. The integration is expected to enhance the user experience by connecting Web3 assets from LINE and Kakao’s messaging platforms, broadening the reach across Asia.

Central to the merger is the transition from KLAY and FNSA tokens to a new native coin. The approach to tokenomics is designed to foster a more stable economic environment within the blockchain, featuring a lower base inflation rate and a 3-layer burning model to encourage deflation with increased network activity. Additionally, a substantial portion of new coins, mainly non-circulating KLAY, will be burned to implement Zero Reserve Tokenomics.

The merger also plans to establish a large decentralized Web3 governance structure in Asia. This structure aims to enhance network security and decentralization through permissionless validation. The foundations are looking to expand into new sectors such as real-world asset (RWA) tokenization, GameFi, and DeFi, integrating traditional digital platforms with blockchain technology.

The Klaytn Community Town Hall, scheduled for January 19, 2024, will provide more details on this proposal. The period for discussion and voting on the proposal is set from January 26 to February 2, 2024.

Merging blockchains is becoming a common trend. Last week, BNB Chain, a notable entity in the field of decentralized smart contracts, announced plans to alter its blockchain architecture. The chain intends to shut down the BNB Beacon Chain, crucial for staking and governance, by April 2024. The objective is to combine the BNB Beacon Chain (BEP-2) with the BNB Smart Chain (BEP-20) to improve the efficiency and security of the network.