The merger creates Asia’s largest Web3 business network, poised to foster communities of holders, developers and partners in each Asian country.
The Clayton and Finschia Foundation presentation This is a joint proposal for a merger to create a new mainnet that not only boasts technological superiority, but also dreams of becoming the best Web3 ecosystem in Asia.
We weren’t kidding when we said 2024 would be a tough year. We have just submitted a governance proposal to merge 2024. #clayton and @Pinskia Creating Asia’s largest Web3 ecosystem with blockchain! More details below 🧵https://t.co/rNsqxxjBsj pic.twitter.com/mvJHPGdYof
— Klaytn (@klaytn_official) January 16, 2024
Purpose of the Clayton and Finschia merger
The proposal, which will be discussed through a governance vote scheduled for January 26 to February 2, aims to unify the base into a single entity, combining technological capabilities, services and a wider business network.
The primary goal of the proposed merger is to establish a new industry leader with a cutting-edge blockchain that supports both the Ethereum Virtual Machine (EVM) and CosmWasm. It aims to attract Ethereum and Cosmos builders by leveraging the strengths of each ecosystem for improved interoperability.
Mainnet aims to create one of the most extensive decentralized application (DApp) ecosystems in Asia and integrate major blockchains from Korea and Japan to create over 420 DApps.
Additionally, the proposed transaction will unite Klaytn’s strong networks in Korea, Singapore and Vietnam with Finschia’s strong networks in Japan, Taiwan, Thailand and Abu Dhabi. This strategic integration will enable interoperability between Klaytn’s decentralized finance (DeFi) and gaming services and Finschia’s NFT, payments, and AI services.
As part of the merger, the team said a new unified token, provisionally named PDT, will be issued. KLAY and FNSA holders can claim this new token, which can be used on both LINE and Kakao Messenger. The unified token features improved token economics, with approximately 24% of the total supply being burned, reducing the inflation rate to 5.2%. To sustain growth and ensure a balanced token ecosystem, a new three-tier burn model will be introduced.
In a joint statement, the Clayton Foundation and the Pinschia Foundation said, “We are pleased to take the first step toward creating tremendous synergies through the integration of public blockchains initiated by Kakao and Line, Asia’s leading IT companies.” The two companies added, “We will do our best to ensure that this merger is an opportunity to innovate and lead the Asian blockchain industry in terms of technology and adoption.”
Business initiatives and expansion plans
If the proposal passes both Klaytn and Finschia’s governance voting processes, the Foundation will immediately begin work on the chain merge and subsequent business initiatives.
This includes developing infrastructure for institutional investors, strengthening DeFi infrastructure through the launch of native stablecoins, AI-based DApp discovery and onboarding, and strengthening onboarding infrastructure for Web2 companies.
Additionally, the foundation will continue to develop messenger-based Web3 services and digital commerce platforms to serve as a springboard for Asian IT and entertainment companies. The merger creates Asia’s largest Web3 business network, poised to foster communities of holders, developers and partners in each Asian country.
To address questions regarding this proposal, representatives from both foundations will answer questions at a Klaytn Community Town Hall on Friday, January 19th.
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