Messaging app giants LINE and Kakao have proposed a merger of their respective public chains, Finschia and Klaytn, emphasizing their goal to become the leading public chains in Asia and achieve explosive growth in the Web3 field.
Finschia, the third-generation blockchain mainnet of LINE, has officially launched, boasting transaction speeds 400 times faster than Ethereum.
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Proposal to merge Finschia and Klaytn mainnets
Integration of LINE and Kakao messaging apps
Introduction of new token PDT
Integration of Ethereum EVM based on Cosmos technology
Proposal to merge Finschia and Klaytn mainnets
According to an announcement by Finschia, both Klaytn and Finschia have simultaneously released governance proposals, with the voting period expected to be from 13:00 on January 26 to 13:00 on February 2 (Taiwan time).
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Integration of LINE and Kakao messaging apps
The merger aims to integrate the two messaging apps LINE and Kakao Messenger, including over 420 DApps and services, to establish the largest Web3 network in Asia.
The merger will enable Finschia’s NFT, payment, and AI services, enhance interoperability between Klaytn and DeFi and gaming services, and allow tokens to be used on LINE and Kakao platforms.
Introduction of new token PDT
Both parties will jointly issue a new token (tentatively named PDT), and holders of FNSA and KLAY will be able to claim the new token.
The token economics will also undergo changes, with approximately 24% of the unissued and existing circulating PDT tokens being burned after the token swap is completed, reducing the inflation rate to 5.2% and introducing a new three-tier burn mechanism.
KLAY holders will have a 1:1 exchange ratio, while FNSA holders will have approximately a 1:148 exchange ratio.
Integration of Ethereum EVM based on Cosmos technology
The new chain will be compatible with Ethereum, and the announcement claims that over 45 companies will participate in the governance, making it the largest Web3 governance ecosystem in Asia.
If the proposal is approved, the new token swap and governance integration are expected to be launched in Q2 of this year. The official statement claims that this merger signifies the birth of the largest blockchain ecosystem in Asia and will accelerate the widespread adoption of Web3 in the region.
Finschia
Kakao
Klaytn
LINE
Further reading
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