Kaia's native token, KAIA, serves as the foundational asset of its Layer 1 blockchain, which was established through the merger of Kakao's Klaytn and LINE's Finschia networks. Designed to integrate Web3 functionalities into widely used Asian messaging platforms, KAIA facilitates transaction fees, smart contract executions, staking, and governance within the ecosystem. The token's distribution model includes an initial annual inflation rate of 5.2%, with block rewards allocated as follows: 50% to validators and the community, 25% to the Kaia Ecosystem Fund (KEF), and 25% to the Kaia Infrastructure Fund (KIF).