Klaytn (KLAY), a Layer 1 blockchain network backed by South Korean internet giant Kakao, and Finschia, a major blockchain developed by messaging conglomerate LINE in Japan, have decided to merge.
Proposed Merger of Klaytn and Finschia Could Create Asia's Largest Web3 Ecosystem
It is thought that this move will potentially create Asia's largest web3 ecosystem.
The Klaytn Foundation and the Finschia Foundation published a joint statement today, expressing their intention to create a new blockchain that supports both EVM and CosmWasm frameworks. If the proposal is approved, the two foundations will merge into a single organization.
The new mainnet will inherit Klaytn's integration with KakaoTalk and Finschia's LINE and serve a user base of more than 250 million digital wallets and more than 420 decentralized applications. Kakao and LINE are the leading messaging platforms across Asia.
“The new public blockchain, providing access to every KakaoTalk and LINE user, will also serve as a springboard for Asia's IT and entertainment businesses,” the companies said.
The vote on the potential merger is scheduled to take place between January 26 and February 2.
In addition, the companies proposed a new token to replace the existing KLAY and FNSA, which are the native coins of the unified blockchains. Owners of both coins will be able to exchange them for the new coin once it is issued.
*This is not investment advice.