South Korean communication software company Kakao’s public chain Klaytn and LINE’s public chain Finschia jointly proposed a mainnet merger to their respective governance members and communities on Tuesday (16th) with the aim of merging Klaytn and Finschia to create a leading blockchain platform in Asia and accelerate the large-scale application of Web3 in Asia.
Finschia stated in the announcement that although the Asian market drives 34% of global GDP and 77% of cryptocurrency trading volume, the market value of Asian blockchain only accounts for 5%, indicating fragmentation and underutilization in this area. Klaytn and Finschia hope to combine their ecosystems and resources through the integration project called “Project Dragon” to achieve significant growth.
According to the announcement, the integrated blockchain will inherit and link Web3 assets based on LINE and Kakao communication software, creating a strong ecosystem with over 250 million user touchpoints in Asia. Additionally, the blockchain will cover “over 420 decentralized applications (DApps) and services, over 45 governance partners, and over 450 Web3 resources (foundations and key participants in the ecosystem)”.
The integration of the ecosystem will maximize the synergies between the two entities, as stated in Finschia’s announcement:
Issuance of new token PDT
The integrated blockchain will issue a new integrated token, tentatively named PDT, and holders of Finschia’s basic token $FNSA and Klaytn’s $KLAY token will be able to claim this new token. The announcement also mentions:
Finschia further notes that the integrated blockchain will combine Ethereum (EVM) and Cosmos (CosmWasm) technologies to “provide a network with new compatibility and high efficiency”, with governance involving over 45 companies, forming the largest Web3 governance in Asia.
The merger proposal is expected to be voted on between January 26 and February 2. 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”.
Following the announcement of the proposal, the prices of $FNSA and $KLAY have significantly increased, according to TradingView data, with FNSA token rising from around $29 to $35, a nearly 24% increase in the past 24 hours, and KLAY token rising from $0.2 to $0.24, a roughly 26% increase in the past 24 hours.