As part of their strategy to corner the Asian Web3 market, Klaytn (KLAY) and Finschia (FNSA) are considering merging to form a new chain.
Klaytn, the Web3 leader in South Korea and a popular blockchain in Singapore and Vietnam, plans to join with Finschia, the most prominent public blockchain in Japan, in a massive acquisition to corner the Asian industry.
On Tuesday, Klaytn said that it has a governance plan to combine Finschia with its metaverse and GameFi-focused network in order to “create Asia’s largest Web3 ecosystem.”
Klaytn Foundation said that a strong ecosystem with more than 250 million user touchpoints in Asia would be created when Web3 assets based on LINE and Kakao messengers are inherited and connected by the integrated blockchain.
If approved, the proposed network would include over 45 governance partners and more than 420 decentralized applications and services (dApps), as detailed in the Klaytn Governance Proposal 25 (KGP-25).
Combining Klaytn’s DeFi and gaming offerings with Finschia’s popularity in the NFT, payment, and AI service sectors is the goal of the merger.
Thanks to the two chains’ capacity to work together and their increased presence in other countries, including Japan, South Korea, Singapore, Vietnam, Taiwan, Thailand, and Abu Dhabi, users will reap the benefits. Cosmos (CosmWasm) and Ethereum (EVM) will both work with the new chain.
The original tokens of the Klaytn and Finschia blockchains, KLAY and FNSA, respectively, will be replaced with a new token, PDT, with distinct tokenomics. There will be a burn mechanism accounting for 24% of the total supply and an inflation rate of 5.2%, among other important elements. It is believed that a 3-layer burning model would also help PDT.
Tokens for KLAY and FNSA were worth $0.22 and $30.34 on Wednesday, according to the main exchanges. But when the tokens’ price surged late Tuesday, they both fell around 5% to make up some of the gains.
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