Kaia: Partnering with two major Asian social giants, Line and Kakao, with 250 million user potential ready to unleash.

1. Overview of Kaia's Background

1.1 Project Introduction

1.1.1 Establishment and Development History

On January 16, 2024, Asia's two leading blockchain platforms, Klaytn and Finschia, announced the launch of a unified mainnet plan. This is a rare large-scale project merger in the Web3 ecosystem, especially considering that these two mainnets originate from South Korea and Japan's internet giants Kakao and LINE, respectively. On August 29, 2024, the merged Kaia mainnet officially goes live. By combining their respective ecosystems and assets, Kakao and LINE plan to create a giant blockchain in Asia and gradually lead the global Web3 market.

Sam Seo, the chairman of the Kaia Foundation, has been deeply researching Bitcoin and blockchain since 2017 and holds a Ph.D. in high-performance computing. He served as the CKO at KrustUniverse, responsible for Klaytn's development and operations, was the Chief Technology Officer at GroundX, and worked as an Assistant Computer Scientist at Argonne National Laboratory.

The strong support from Kakao and LINE injects momentum into Kaia. Kakao has a usage rate of up to 96% in South Korea and has a significant influence in Vietnam. LINE is popular in Japan, Taiwan, and Thailand, and together they have a potential user base of over 250 million, greatly enhancing global coverage. This huge user base is expected to significantly boost the adoption of blockchain technology in the East Asian market, laying the foundation for large-scale applications and creating the largest Web3 ecosystem in Asia. Other investors in Kaia include Hashed, IDG Capital, and others.

1.1.2 Important Time Nodes

• January 16, 2024: Klaytn and Finschia announced the launch of the unified mainnet plan.
• August 29, 2024: The merged Kaia mainnet is officially launched.

1.1.3 Kakao and Klaytn

Kakao Talk is one of the most popular instant messaging applications in South Korea, with nearly 49 million monthly active users in Q3 2024, 90% of whom are from South Korea. The company employs over 17,000 people, with an operating profit of 130.5 billion KRW in Q3 2024, equivalent to 1,934.8 million USD, a year-on-year increase of 5%. The platform division's revenue grew by 7%, reaching 943.5 billion KRW, which is about 1,017.0763 million USD.

Klaytn was built from the very beginning for DApp developers and enterprises. This ecosystem allows developers to unleash their creativity and enhance user experiences, providing a strong technical foundation for Kaia. Klaytn has a cumulative transaction volume of $376 billion, with over 29 million Web3 wallet users, more than 240,000 community members, and an ATH Onchain TVL exceeding $1 billion, having a strong influence in Singapore and Vietnam.

The South Korean market is crypto-friendly, with the local exchange Upbit becoming an industry-leading exchange, and Web3 projects take pride in being able to list on Upbit. Against the backdrop of widespread cryptocurrency trading among users in South Korea, the ceiling for Kaia is thought-provoking.

(# 1.1.4 Line and Finschia

LINE, as the most popular communication platform in Japan, covers 70% of the Japanese population and also dominates markets in Thailand, Taiwan, and others. Japan has 92 million monthly active users, Thailand has 51 million, Taiwan has 21 million, and Indonesia has 13 million. This high user penetration rate provides a solid foundation for its advertising, payment, and content services. A 2024 Nielsen survey shows that 92.1% of Taiwanese people aged 15-65 used LINE in the past seven days, with nearly half of the users being heavy users, checking LINE an average of 14 times a day for messages.

LINE's ecological integration capabilities are outstanding, allowing users to consume a rich array of content products, including over 300,000 comic books and 9 games that integrate social interaction. This diversification of features gives LINE a significant advantage in maintaining user engagement. An average usage time of over 4 hours per week highlights its irreplaceability in users' daily lives.

This comprehensive ecosystem provides Kaia with a unique strategic advantage. LINE users are highly concentrated and active, and its integrated advertising and payment features enable brands and services to precisely reach target audiences. LINE's regional strategy for its ecosystem ensures that platform content closely matches the cultural needs of users, creating an efficient pathway for Kaia's localized promotion.

LINE's payment ecosystem showcases its potential in the blockchain economy. With 40 million monthly active payment users and an annual transaction volume exceeding $12 billion, LINE Pay has provided users with a seamless digital payment experience. This payment infrastructure, combined with its highly refined advertising capabilities, reaching over 200 million users monthly, provides a natural advantage for blockchain projects to land and expand in the Asia-Pacific market.

It is worth noting the LINE Miniapp plan, which serves as a bridge connecting Web2 and Web3. This feature not only allows existing users to easily access decentralized applications but also builds a highly compatible development environment through deep integration of its payment, advertising, and communication ecosystem.

Finschia, a blockchain under LINE, was launched in 2018. After about 5 years of development, it has over 5.6 million Web3 wallet users and more than 170,000 community members, holding an important position in Japan, Taiwan, Thailand, and Abu Dhabi.

LINE's strategic direction indicates that in the future Web3 world, it will not only be a participant but also a promoter and accelerator, helping the entire industry bridge the critical gap from technology to mainstream application.

Currently, Kaia has confirmed that it will launch the SDK for Line mini programs and will roll out the first batch of Line mini program applications in January 2025, while also meeting regulatory requirements. On the Kakao side, among Kaia's six council members, three are from Kakao's blockchain Klaytn. Additionally, Kakao and its affiliates hold approximately 9.8% of Kaia's total supply and actively participate in its governance. However, the current regulatory uncertainty in South Korea hinders Kakao from playing a more active role in blockchain initiatives, such as launching mini dApps like LINE. Once these regulatory uncertainties are resolved and the LINE mini dApp service is successful, Kakao is expected to fully embrace blockchain integration.

![With Line and Kakao, two major Asian social giants, 250 million users are poised for potential, can Kaia replicate the myth of TON?])https://img-cdn.gateio.im/webp-social/moments-b3813c2b71b05e7b20fbaef58445885f.webp(

) 1.2 Token Economics

1.2.1 Token $Kaia

Kaia's native token KAIA plays a central role in the blockchain economy, used to create or execute smart contracts or to pay transaction fees when transferring KAIA. It is not only a means of payment for transactions but also provides the power for the entire system to operate normally.

1. Incentive Mechanism: Platform customers incentivize consensus nodes (Consensus Nodes,CNs) by paying KAIA, as these nodes are responsible for validating transactions and executing smart contracts. In short, the nodes provide computing power and resources, and users pay KAIA in return, creating a mutually beneficial relationship.

2. Promote Development Quality: The fees paid using KAIA are proportional to the complexity of the smart contract and resource consumption. If the developer's code is overly inefficient or redundant, executing this code will be more expensive. This mechanism encourages developers to optimize code quality and avoid wasting computational resources.

3. Maintain Network Health: CN nodes support network operations by consuming computing power and bandwidth. Earning KAIA rewards can incentivize more nodes to participate in the consensus process, thereby ensuring the decentralization and stability of the network.

Each new block will automatically issue KAIA tokens, with an initial annual inflation rate of 5.2%. The block reward distribution is as follows:

1. CCO and community: 50% ( 20% block creator reward, 80% staking reward )
2. KEF###Kaia Ecosystem Fund###:25%
3. KIF(Kaia Infrastructure Fund):25%

This distribution model can both incentivize network participation and support the growth and development of the Kaia ecosystem.

The on-chain governance system implemented by Kaia aims to achieve fairness and inclusivity:

1. Voting rights are proportional to the amount of KAIA tokens contributed.
2. The voting power cap can prevent the opinions of a minority from being suppressed.
3. Allow voting rights delegation.
4. All governance proposals are recorded on-chain to ensure transparency.

From the perspective of the coin price, Kaia has also performed very well. Since Klay was renamed to Kaia and launched on the platform, it has been rising steadily.

(# 1.2.2 Governance Council

With the advancement of technology driving the rapid growth of the metaverse, decentralized autonomous organizations )DAOs( and developers are becoming significant forces in the new economic form. Kaia is closely following this trend and has launched the Kaia Governance Council )Governance Council, GC(, which consists of 31 trusted early members, most of whom are top institutions. These include: Kakao, Google Cloud, GS HomeShopping), Korea's number one multimedia retailer###, LG Uplus(, a subsidiary of Korea's largest company LG Corporation), Hanwha Systems(, Korea's second-largest non-bank financial group), Everrich Group(, a real estate developer primarily operating in Korea, Taiwan, and Southeast Asia), HashKey(, a leading fintech group headquartered in Hong Kong, focusing on the development of blockchain), NEOPLY(, a leading startup accelerator under NEOWIZ, which is a large online gaming company in Korea specializing in blockchain investments), and others.

Through this choice, the Kaia platform successfully achieves stable operation of the mainnet, ensuring rapid and efficient advancement of technology stability and operational implementation during the early stages of platform development, laying a solid foundation for subsequent governance model innovation.

Moreover, Kaia has expanded GC membership from traditional enterprises to DAOs and builders to meet the demands of the new era. Kaia's ultimate vision is to become a fully decentralized "DAO of DAOs," unifying the voices of all governance entities through on-chain mechanisms. This is not only a technological innovation but also represents a true transformation of governance structures—empowering all stakeholders with a greater voice and setting a new benchmark for decentralized development in the metaverse.

Kaia's governance framework is not only the core pillar of its platform development but also a key highlight in attracting global developers, communities, and organizations to participate. With a governance mechanism that combines foresight and flexibility, Kaia is laying a solid foundation for sustainable growth in the blockchain ecosystem.

In addition, Kaia has also closely collaborated with government departments, for example, the Bank of Korea has chosen its parent company Ground X as the main technology provider for the blockchain-based digital won simulation.

( 1.3 Technical Architecture Principles

Kaia is a highly optimized public blockchain based on BFT) Byzantine Fault Tolerance, which refers to the ability of a decentralized network to reach consensus even in the presence of malicious nodes or failures (, aiming to meet enterprise-level reliability and performance standards.

Kaia Blockchain provides:

1. 1 second block generation and confirmation time.
2. Can process 4000 transactions per second.
3. Low gas prices, about 1/10 of Ethereum.
4. EVM compatible, supports Solidity contracts.
5. The governance is conducted by the Kaia Governance Committee composed of globally renowned enterprises.

The network structure of Kaia is divided into three logical sub-networks: