The groundbreaking merger between Finschia and Klaytn has been officially approved, marking a significant milestone in the world of blockchain technology. With a 100% voting turnout and an impressive 95% approval rate, the merger is set to create Asia’s most extensive and influential blockchain ecosystem.
As the Finschia Foundation announced, the merger will establish Asia’s largest Web3 ecosystem, boasting the participation of over 45 companies, 420 decentralized applications (dApps), and services. Furthermore, the combined user base will reach a staggering 250 million Asian wallet users.
Immediate actions will be taken to form a task force (TF) dedicated to the merger, with plans to explore the potential of creating a unified foundation based in Abu Dhabi, UAE, in alignment with the ADGM’s DLT Foundation Regulations 2023. This step marks the culmination of strategic changes initiated by both foundations over the past year, setting the stage for a new era of innovation and collaboration. This potential move towards ADGM follows the footsteps of the IOTA foundation, which chose to register in ADGM after the introduction of the DLT foundation regime, indicating a growing trend of blockchain companies considering the UAE as a favorable regulatory environment.
The integration of tokens and governance is scheduled for the second quarter of 2024. This will introduce a novel tokenomics structure, featuring a 22.9% ($384 million worth) reduction in existing token issuance, alongside the removal of non-circulating amounts and a three-phase burning model. In addition, the governance framework will prioritize community involvement through user delegation functions and voting weights.
Transparency and operational integrity will be enhanced through a new transparency protocol, solidifying the position of the joint foundation as a trusted market entity in Asia’s blockchain landscape.
The joint efforts of Finschia and Klaytn extend beyond their immediate ecosystem. They are poised to promote several innovations for the broader Asian blockchain industry, including infrastructure for institutional demand, the launch of a native stablecoin, the development of large-scale decentralized finance (DeFi) projects, and the creation of Web2 company-oriented infrastructure for mainstream adoption.
The Foundation expresses gratitude for the substantial interest and feedback received from various companies and community members during the voting period. Committing to incorporate this valuable input, they urge continued interest and support as they work toward the full realization of this ambitious merger and its implications for the future of blockchain in Asia.
