Quick take:
- The companies will launch a joint task force to establish an integrated foundation and mainnet.
- The new blockchain will be compatible with both Ethereum and Cosmos.
- The companies will also launch a new native coin featuring sustainable tokenomics.
Finschia Foundation and Klaytn Foundation Web3 communities have approved a merger proposal that will see the two companies form the largest layer-1 blockchain in Asia. The merger was approved on Friday following a 100% voting turnout and a 95% approval rate.
The two companies also announced they will be forming a joint task force to establish an integrated foundation and mainnet. The new blockchain will be compatible with both Cosmos and Ethereum. Klaytn and Fnschia also plan to launch a new native coin featuring sustainable tokenomics.
“We are now poised to build the largest blockchain ecosystem in Asia. Our efforts will culminate in creating the largest Web3 ecosystem in Asia, encompassing governance with participation from over 45 companies, 420 dApps and services, and a user base of more than 250 million Asian wallet users,” the companies write in a statement published on the Finschia website.
According to the joint foundation will be based in Abu Dhabi, UAE. The two companies started reorganising their structures a year ago, with changes in management ahead of forming what they call “a new joint business system, driving another wave of innovation.”
The planned token launch and new governance are scheduled to take place in Q2 2024, accompanied by a 22.9% ($384M worth) token burn of the existing tokens and the removal of non-circulating amounts. The new organisation also plans a three-phase burning model thereafter.
The new token will be community-centric powering an integrated governance model through user delegation functions and voting weights.
The two foundations also plan to engage in joint initiatives to promote the growth of the entire Asian blockchain industry. Some of the innovations proposed in the merger include launching an institutional-grade infrastructure, launching a native stablecoin, building large-scale DeFi, and developing Web2 company-oriented infrastructure for mainstream adoption.
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