Kakao-backed Klaytn and LINE-developed Finschia have announced their plans to merge, with the aim of building Asia’s largest Web3 ecosystem. The proposed integration involves combining the Klaytn Foundation and Finschia Foundation into a single organization responsible for the development and governance of a blockchain network supporting Ethereum Virtual Machine (EVM) and CosmWasm frameworks.
The merger is set to bring together the integration of Klaytn with KakaoTalk and Finschia with LINE, thereby catering to over 250 million digital wallets and more than 420 decentralized apps. The new public blockchain, with access to every Kakaotalk and LINE user, also holds the potential to act as a launchpad for Asia’s IT and entertainment enterprises.
To facilitate the merger, a voting period has been scheduled from January 26 to February 2. If approved, the merger will introduce a new token, replacing the existing KLAY and FNSA tokens. Holders of these tokens will be able to swap them for the new native coin. The news of the proposed merger has already had a significant impact on token prices, with KLAY experiencing a surge of 31.8% to $0.25 and FNSA seeing an increase of 22.6% to $34.74.
The companies involved in the merger have highlighted the combined experience of the Klaytn and Finschia foundations, emphasizing their commitment to creating sustainable value through the proposed tokenomics. The new native coin will feature a lower base inflation rate and a 3-layer burning model designed to drive deflation as network activity increases.
In addition, the merger plans include the implementation of a “Zero Reserve Tokenomics” model, which involves burning 24% of the new tokens. By uniting the efforts of two leading IT companies in Asia, Kakao and LINE, the foundations express their excitement about unlocking the enormous synergy that merging public blockchains will bring.
While this merger could lead to the formation of Asia’s largest Web3 ecosystem, it is yet to be seen how the integration of Klaytn and Finschia will unfold and what impact it will have on the blockchain landscape in the region.
The source of the article is from the blog bitperfect.pe