The native utility token of South Korea’s Ethereum (ETH) rival is rallying following news of a proposed new blockchain merger.
Layer 2 smart contract platform Klaytn (KLAY) rose 39% from a 24-hour low of $0.189 to a high of $0.262 after announcing a proposed merger to create “Asia’s leading blockchain system.”
KLAY has since stabilized and consolidated, trading at $0.219 at the time of this writing, up nearly 17% in the last 24 hours.
Klaytn is a public blockchain platform that aims to provide a user-friendly interface and experience. Klaytn is owned by Kakao, a South Korean internet and mobile provider. KLAY is the native token and medium of exchange within Klaytn’s blockchain ecosystem, used to pay transaction fees and staking.
This morning, Klaytn and Web3 and Finschia, an independent non-profit organization aimed at scaling blockchain technology, announced a joint proposal for a blockchain merger.
“The Klaytn Foundation, which was established to build and decentralize the ecosystem of Klaytn, Korea’s leading layer 1 blockchain, is collaborating with the Pinskia Foundation, which operates the Pinskia blockchain developed by Linetech Plus, to merge the two existing blockchains into one. “We proposed to integrate it into blockchain,” he said. New mainnet. “The two blockchain foundations will submit a merger proposal to their respective governance members today to initiate discussions, with voting taking place from January 26 to February 2, 2024.”
According to the announcement, the merger will aim to unify blockchains and combine their strengths while creating Asia’s largest blockchain ecosystem.
“This offering aims to create a new industry leader with a technologically superior blockchain supporting both EVM (Ethereum Virtual Machine) and CosmWasm, and Asia’s largest decentralized application (DApp) ecosystem and users. “The two foundations will be integrated into one organization by combining business networks including various strategic partners such as technology, service, Kakao, and Line.”
According to the proposal, holders of KLAY and FNSA, the native tokens of Klaytn and Finschia, will be able to exchange their existing tokens for the new native tokens after they are issued.
“Building on the combined experience of both foundations, the token economics proposed for this new native coin will focus on providing sustainable value creation. This will be achieved through a low base inflation rate and a three-stage burn model designed to steer coins in a deflationary direction as network activity increases.”
The proposed merger also promises to improve the blockchain’s level of decentralization, governance mode, and interoperability with other blockchains.
“We are excited to take the first step toward realizing the tremendous synergy effect of public blockchain integration initiated by Asia’s leading IT companies, Kakao and LINE. We will do our best to make this merger an opportunity to innovate and lead the Asian blockchain industry in terms of technology and adoption.”
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