Klaytn and Finschia merger greenlit to form Asia’s largest web3 ecosystem
Quick Take
- Klaytn and Finschia are backed by leading internet conglomerates in Asia.
- The merger will establish a new native token along with a unified foundation based in Abu Dhabi.
Layer-1 blockchains Klaytn 
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and Finschia announced Thursday that their proposal to merge the two networks has been officially approved by governance members of both foundations.
“Our efforts will culminate in creating the largest Web3 ecosystem in Asia, encompassing governance with participation from over 45 companies, 420 dApps and services, and a user base of more than 250 million Asian wallet users,” a press release said.
Klaytn is backed by South Korean internet giant Kakao, while Finschia was developed by Japan’s messaging conglomerate LINE. The two have established networks in Singapore, Vietnam, Taiwan, Thailand and Abu Dhabi.
With the official announcement, the two entities said they would establish a new foundation in Abu Dhabi to execute the merger under a unified leadership with equal seats from Klaytn and Finschia. The new blockchain mainnet will be compatible with both EVM and CosmWasm.
The tokens and governance are expected to merge in the second quarter of this year, introducing a new native token. 22.9%, or $384 million worth of the existing token issuance, will be burned — and all non-circulating tokens will be removed — the announcement said.
Klaytn and Finschia are also planning to endorse web3 innovation in Asia by launching a native stablecoin, establishing major-scale DeFi and a blockchain adoption infrastructure for web2 companies.
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