Klaytn and Finschia Announce Merger

L1 blockchains Klaytn and Finschia have agreed on a merger to establish the largest Web3 ecosystem in Asia. The proposal was voted on by community members of both projects and passed with 95% in favor, as detailed in a press release.

This partnership aims to create a comprehensive ecosystem that encompasses over 45 Web3 companies, 420 dApps, and services, alongside a user base exceeding 250 million. Moreover, the collaboration seeks to accelerate Web3 innovation in the region and enhance infrastructure for broader blockchain technology adoption.

The merger process will be managed by a newly formed organization, governed equally by representatives from both projects. The union is expected to develop a new blockchain platform compatible with Ethereum and Cosmos, introduce a native cryptocurrency with a unique economic framework, and create a forward-thinking collective governance model.

In the aftermath of the merger, 22.9% of the existing tokens ($384 million) will be burned. The integration of tokens and governance models is scheduled for the latter half of 2024.

Both projects have significant backing from key players within the Asian economic landscape. Klaytn is supported by South Korean internet giant Kakao, while Finschia is backed by Japan’s conglomerate LINE.