South Korean communication software company Kakao’s public chain Klaytn and LINE’s public chain Finschia jointly proposed a mainnet merger proposal 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.
In the announcement, Finschia stated that although the Asian market drives 34% of global GDP and 77% of cryptocurrency trading volume, the market value of Asian blockchain accounts for only 5%. This shows the fragmentation and underutilization of this field. Klaytn and Finschia hope to achieve significant growth by integrating their ecosystems and resources through a 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 strong 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 key participants based on the ecosystem)”.
The integration of the ecosystem will maximize the synergy between the two entities, as stated in Finschia’s announcement. A new integrated token, tentatively named PDT, will be issued on the integrated blockchain. Holders of Finschia’s native token $FNSA and Klaytn’s $KLAY token will be able to claim this new token.
Finschia also stated 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 over 45 companies, forming the largest Web3 governance in Asia.
The merger proposal is expected to be voted on from January 26th to February 2nd. If approved, Finschia and Klaytn plan to “establish an integrated foundation, launch new token exchanges, complete governance integration, and introduce new business plans for the merged mainnet” in the second quarter.
After the proposal was released, the prices of $FNSA and $KLAY tokens both surged. According to TradingView data, the FNSA token rose from around $29 to $35, with a 24% increase in the past 24 hours. The KLAY token rose from $0.2 to $0.24, with a 26% increase in the past 24 hours.
