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

1. Background Overview of Kaia

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. These two mainnets originate from Korea's and Japan's internet giants, Kakao and LINE, respectively. On August 29, 2024, the merged Kaia mainnet will officially go live. Kakao and LINE plan to create a giant blockchain in Asia, gradually leading the global Web3 market.

Sam Seo, the chairman of the Kaia Foundation, holds a Ph.D. in high-performance computing and has served as CKO at KrustUniverse, responsible for the development and operation of Klaytn. He was also the Chief Technology Officer at GroundX and worked as an Assistant Computer Scientist at Argonne National Laboratory.

The joint support of Kakao and LINE has injected strong momentum into Kaia. Kakao has a usage rate of up to 96% in South Korea and also has a significant impact in Vietnam. LINE is popular in Japan, Taiwan, and Thailand. Together, they provide Kaia with a potential user base of over 250 million, significantly enhancing its global reach. Kaia is expected to greatly enhance the popularity and acceptance of blockchain technology in the East Asian market, laying the foundation for large-scale applications; creating a large-scale, vibrant Web3 ecosystem in Asia.

1.1.2 Important Time Nodes

January 16, 2024: Klaytn and Finschia announce merger plans 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, of which 90% are from South Korea. The company employs over 17k people, and its operating profit in Q3 2024 was 130.5 billion KRW (9348 USD ), a year-on-year increase of 5%. The platform division's revenue grew by 7%, reaching 943.5 billion KRW (7.0763 million USD ).

Klaytn has been built for DApp developers and enterprises from the very beginning. The ecosystem allows developers to unleash their creativity and expand user experiences. Klaytn has accumulated a transaction volume of $376 billion, with over 29 million Web3 wallet users and more than 240k community members. The ATH Onchain TVL has reached over $1 billion and has a strong influence in Singapore and Vietnam.

The South Korean market is crypto-friendly, and the local exchange Upbit has become a leading exchange. Against the backdrop of widespread cryptocurrency trading among Korean users, the development prospects of Kaia are promising.

1.1.4 Line and Finschia

LINE covers 70% of the Japanese population and dominates markets in Thailand, Taiwan, and other regions. There are 92 million monthly active users in Japan, 51 million in Thailand, 21 million in Taiwan, and 13 million in Indonesia. The high penetration rate provides a solid foundation for advertising, payment, and content services. A survey in 2024 showed that 92.1% of the Taiwanese population aged 15-65 used LINE in the past seven days, with nearly half of the users being heavy users, averaging 14 times a day on LINE.

The LINE ecosystem has outstanding integration capabilities, allowing users to consume a rich variety of content products, including over 300,000 comic books and 9 games that integrate social interaction. Its diversified functions give LINE a significant advantage in maintaining user engagement. An average usage time of over 4 hours per week highlights its irreplaceability.

LINE's payment ecosystem showcases the potential of the blockchain economy. With 40 million monthly active payment users and an annual transaction volume exceeding 12 billion USD, it provides users with a seamless digital payment experience. The refined advertising capabilities reach over 200 million users monthly (, providing a natural advantage for blockchain projects to land and expand in the Asia-Pacific market.

The LINE Miniapp project aims to serve as a bridge connecting Web2 and Web3, allowing existing users to easily access decentralized applications, deeply integrating payment, advertising, and communication ecosystems, and creating a highly compatible development environment.

Finschia was launched in 2018, with over 5.6 million Web3 wallet users and more than 170k community members, holding a significant position in Japan, Taiwan, Thailand, and Abu Dhabi.

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

Kaia has confirmed the launch of the Line mini program SDK and will release the first batch of Line mini program applications in January 2025. Among Kaia's six council members, three are from Kakao's blockchain Klaytn. Kakao and its affiliates hold approximately 9.8% of Kaia's total supply and are actively involved in governance. Currently, regulatory uncertainty in South Korea hinders Kakao from playing a more active role in blockchain initiatives. Once the regulatory uncertainty is 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' potential is ready to explode. 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 for paying transaction fees. It is not only a means of transaction payment but also provides the power for the system to operate normally:

1. Incentive Mechanism: Customers incentivize consensus nodes ###CNs( by paying KAIA. These nodes are responsible for validating transactions and executing smart contracts.
2. Promote development quality: The fees paid using KAIA are proportional to the complexity of the smart contract and resource consumption, encouraging developers to optimize code quality.
3. Maintain network health: CN nodes receiving KAIA rewards can incentivize more nodes to participate in the consensus process, ensuring network decentralization and stability.

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

1. CCO and Community: 50% ) 20% Block Creator Rewards, 80% Staking Rewards (
2. KEF) Kaia Ecosystem Fund (: 25%
3. KIF) Kaia Infrastructure Fund (: 25%

Kaia's on-chain governance system aims to achieve fairness and inclusivity:

1. Voting rights are proportional to the amount of KAIA tokens invested.
2. The cap on voting rights 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.

Since Klay was renamed to Kaia and listed on Binance, the price has performed well and has been rising steadily.

![Can Kaia replicate the myth of TON with Line and Kakao, the two major Asian social giants, and their 250 million user potential?])https://img-cdn.gateio.im/webp-social/moments-862a6530d9196d80c04bfaeed4eb6f9a.webp(

)# 1.2.2 Governance Council

With the advancement of technology driving the rapid growth of the metaverse, decentralized autonomous organizations ###DAOs( and developers have become important forces in the new economic landscape. Kaia has launched the Kaia Governance Council )Governance Council, GC(, consisting of 31 trusted early members, many of whom are top institutions. These include: Kakao, Binance, Google Cloud, GS HomeShopping, LG Uplus, Hanwha Systems, Everrich Group, HashKey, NEOPLY, etc.

Through this choice, the Kaia platform has successfully achieved stable operation of the mainnet, ensuring that the platform's early development stage can efficiently and quickly advance technology stability and operational implementation, laying a solid foundation for subsequent governance model innovation.

Kaia expands 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 greater voice and setting a new benchmark for the decentralized development of the metaverse.

Kaia's governance framework is a core pillar of its platform development and a key highlight that attracts global developers, communities, and organizations to participate. With a governance mechanism that combines foresight and flexibility, Kaia lays a solid foundation for the sustainable growth of the blockchain ecosystem.

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

![With Line and Kakao, the two major Asian social giants, 250 million user potentials are ready to unleash. Can Kaia replicate the myth of TON?])https://img-cdn.gateio.im/webp-social/moments-b1277c4c9804c4b711bfc616242841a3.webp(

) 1.3 Technical Architecture Principles

Kaia is a highly optimized, BFT-based public blockchain designed to meet enterprise-grade 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 price, approximately 1/10 of Ethereum.
4. EVM compatible, supports Solidity contracts.
5. Governance is carried out by the Kaia governance committee composed of globally renowned enterprises.

Kaia's network structure is divided into three logical subnetworks:

1. Core Cell Network ###: Composed of core units ( CCN) responsible for transaction validation, execution, and block creation.
2. Endpoint Node Network ( ENN ): Composed of endpoint nodes ( EN ), responsible for handling RPC API requests and service chain data.
3. Service Chain Network ( Service Chain Network, SCN ): A secondary blockchain that operates independently by DApps, connected to the main chain through EN.

These mechanisms make the Kaia blockchain a platform that combines high performance, security, and compatibility, especially suitable for application scenarios that require fast transaction processing, compatibility with the Ethereum ecosystem, and cross-chain interaction needs. Its design meets the convenience needs of developers while supporting user experience in high-frequency trading scenarios, and ensures system reliability and resistance to attacks through multiple security measures. This is specifically reflected in the following five aspects.

(# 1.3.1 Consensus Algorithm

Kaia adopts an optimized version of Istanbul BFT. In Kaia, there are three types of nodes: CN) consensus nodes ###, PN( proxy nodes ), and EN( endpoint nodes ).

1. Consensus Node (, CN): Responsible for generating blocks, managed by core node operator ( CCO ).
2. Proxy Nodes (, PN ): Transfer data between consensus nodes and users. Provide network interfaces, transmit transaction requests, and propagate blocks.
3. Core Unit (CC): Composed of one consensus node (CN) and two proxy nodes (PN).
4. Terminal Node (EN): Acts as a network endpoint, handling API requests and data processing. Connects users and the network, providing access services.
5. Bootnode (: A special node operated by Kaia to assist new nodes in joining the network.

Since verification and consensus are conducted for each block, there will be no forks, and once consensus is reached, the finality of the block can be immediately guaranteed.

The problem of increased communication volume in the BFT algorithm is solved by using a randomly selected committee. The CN collective forms a committee, and during the generation of each block, a portion is selected as committee members using VRF. The main process is:

1. Random Selection Committee: A group of people is fairly selected using VRF to generate and verify blocks. This group is called the "Committee," which includes the "Proposer" ) responsible for proposing new blocks ( and the "Validator" ) responsible for checking whether the blocks are compliant (.
2. Block Generation: The selected proposer generates a new block.
3. Verification and Signature: Validators in the committee review whether the block submitted by the proposer is correct. If more than two-thirds of the validators approve and sign, the block will be added to the blockchain.

Since the consensus information is only exchanged among committee members, the communication volume will not exceed the designed level even if the total number of CN increases.

![With the two major Asian social giants Line and Kakao, and the potential of 250 million users waiting to be unleashed, can Kaia replicate TON?