Klaytn and Finschia have proposed a merger that could bolster crypto, web3, and decentralized applications (dApps) in Asia. This fusion aims to leverage the strengths of both entities to create what could be the continent’s foremost blockchain ecosystem.
Klaytn boasts a substantial network across Korea, Singapore, and Vietnam. Finschia, with a strong presence in Japan, Taiwan, Thailand, and Abu Dhabi, plans to integrate resources with Klaytn.
Klaytn Looks to Solidify Asian Web3 Prospects
This merger, if approved, would create a network with over 250 million user touchpoints, more than 420 dApps, and a broad coalition of over 45 governance partners.
A pivotal aspect of this proposed merger is the launch of a new integrated token, provisionally named PDT. This move involves unique tokenomics, including a dramatic 24% burn of the total supply and a reduction in the inflation rate to 5.2%.
This strategy will reduce the circulating supply of tokens and help foster sustainable growth in the blockchain ecosystem.
The technical backbone of this integrated blockchain combines Ethereum (EVM) and Cosmos (CosmWasm) technologies. Furthermore, this synergy is anticipated to offer compatibility and performance.
Read more: 10 Opportunities That Web3 Brings For Tech Professionals
The governance structure of this integrated network will involve over 45 entities, forming one of the largest web3 governance frameworks in the region. Such a diverse and expansive governance model also underlines the commitment to maximizing decentralization and community participation.
Klaytn’s native KLAY token is trading for $0.222 at the time of press. It has enjoyed a nice 25% gain this week but is still down over 94% from its 2021 all-time high of $4.24.
KLAY price chart 1M. Source: BeInCrypto
Asia Positions Itself to Be Web3 Frontrunner
Overall, the Asian market drives a significant portion of the global GDP and cryptocurrency trading volume. Yet, it has seen only a modest share in the market capitalization of blockchain technologies.
The Klaytn and Finschia teams also view this as a substantial opportunity to consolidate and leverage Asia’s fragmented blockchain sector.
The DFINITY Foundation’s recent establishment of the ICP Asia Alliance and a $20 million grant fund further underscores the growing interest and potential for Web3 and blockchain technology in Asia. Dominic Williams, Founder and Chief Scientist of DFINITY, noted,
“Asia has emerged as a pivotal region for the Internet Computer and the broader web3 ecosystem.”
Total web3 funding by quarter. Source: Crunchbase
As the world shifts towards web3, with the increasing adoption of AI and blockchain technologies, this merger could mark a significant milestone.
This integration is pending approval from the governance vote. If approved, it could spur the birth of Asia’s largest blockchain ecosystem and accelerate the mass adoption of web3 across the continent.