TLDR
Kaia (KAIA) is a merged Layer 1 blockchain from Klaytn (Kakao) and Finschia (LINE), designed to drive Web3 adoption in Asia via integrations with 250M+ users on KakaoTalk and LINE.
Asia’s stablecoin hub – Powers payments, DeFi, and cross-border transactions with native USDT and local fiat stablecoins.
EVM-compatible infrastructure – Combines Ethereum’s developer toolkit with gas abstraction and MEV-resistant features.
Token-driven flywheel – KAIA is burned with transactions, used for governance, and fuels a self-reinforcing ecosystem.
Deep Dive
1. Purpose & Value Proposition
Kaia aims to simplify Web3 adoption in Asia by embedding blockchain functionality into everyday apps. Its merger with Klaytn and Finschia (Kaia Docs) created Asia’s largest Web3 ecosystem, directly accessible to users of KakaoTalk (South Korea) and LINE (Japan/SE Asia). The chain focuses on stablecoins, enabling low-cost remittances, in-app payments, and tokenized assets.
2. Technology & Architecture
Kaia is EVM-compatible, allowing Ethereum developers to deploy dApps seamlessly. Key upgrades include:
- Gas abstraction: Users pay fees in stablecoins like USDT, bypassing KAIA holdings.
- MEV auctions: Validators bid for transaction ordering rights, redistributing profits to stakers.
- Storage compression: Reduced node storage needs by 2 TB in v2.1.0 (Kaia tweet).
3. Tokenomics & Governance
KAIA’s supply mechanics and governance are designed for sustainability:
- Burn mechanism: 30% of transaction fees are burned, reducing supply as network usage grows.
- On-chain governance: Stakers vote on upgrades, with delegation via forums and a cap to prevent centralized control.
- Merger adjustments: Post-merger circulating supply rose to ~5.8B KAIA, with inflation adjusted to 9.6 KAIA per block.
Conclusion
Kaia is a consumer-centric blockchain merging Kakao and LINE’s ecosystems to mainstream stablecoins and DeFi in Asia. Its EVM compatibility, token burn dynamics, and mass-market integrations position it as a bridge between Web2 users and Web3. With 350+ projects in its ecosystem, can Kaia’s focus on usability and compliance unlock Asia’s stablecoin potential?
