Blockchain networks Klaytn and Finschia are set to merge. Their coins, KLAY and FNSA, will be replaced by a new native token. The initiative aims to establish the largest Web3 ecosystem in Asia.
Board members of Klaytn and Finschia Foundation board members voted in favor of merging the networks into a single Web3 ecosystem. The process of bringing together Asia’s largest providers of blockchain infrastructure and Web3 products was dubbed Project Dragon.
According to the roadmap, the plan is to launch an integrated core network compatible with EVM and CosmWasm. Additionally, a new native token, tentatively named PDT, will replace KLAY and FNSA coins and will be utilized in messaging platforms LINE and Kakao.
Sam Seo, Representative Director of Klaytn Foundation, highlights that the unified network will facilitate interoperability between NFTs, payments, Finschia’s AI services, and Klaytn’s DeFi and GameFi services. Youngsu Ko, Chairman of the Finschia Foundation Board, adds that the combined ecosystem will encompass approximately 420 dApps and over 250 million Web3 users.
A new non-profit organization, to be established in Q2 of this year, will be headquartered in Abu Dhabi. It’ll feature an equal number of directors from Klaytn Foundation and Finschia Foundation on its board, along with representatives from Kakao, Binance, Quantstamp, SoftBank, and CertiK.
Key development goals of the new organization include:
- enhancing Web3 infrastructure accessibility for institutional investors;
- collaboration with various partners;
- launching stable coins;
- driving innovation in Asia’s blockchain industry.
The merger initiative, initially proposed in January 2024, was rejected by an absolute majority on both sides in the first vote. However, the second version of the merger agreement, presented in early February, garnered approval from 90% of Klaytn’s board members and 95% from Finschia.
Klaytn is a blockchain platform that was developed in 2019 by Ground X, a subsidiary of South Korea’s KakaoTalk. One of the first users of the Klaytn ecosystem was LG.
Finschia was created by Japanese social media company LINE in 2018 and was known as blockchain Link. The network was renamed Line in 2020 and Finschia in April 2023. The non-profit organization was established in Abu Dhabi to ensure the decentralization of the network.
In 2023, the number of users of Web3 applications more than doubled, and blockchain networks Klaytn and Finschia were the growth leaders.
