Kaia: Partnering with Asia's two major social giants, Line and Kakao, with a potential of 250 million users ready to unleash.

1. Background Overview of Kaia

1.1 Project Overview

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. These two mainnets originate from South Korea's Kakao and Japan's LINE. On August 29, 2024, the merged Kaia mainnet will officially go live. Kakao and LINE plan to create a giant blockchain in Asia by combining their respective ecosystems and assets, gradually leading the global Web3 market.

Sam Seo, the chairman of the Kaia Foundation, holds a PhD in high-performance computing and previously served as CKO at KrustUniverse, overseeing the development and operation of Klaytn. He also held the position of Chief Technology Officer at GroundX(, Kakao's blockchain subsidiary, and worked as an Assistant Computer Scientist at Argonne National Laboratory.

The joint support of the two giants 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 very popular among users in Japan, Taiwan, and Thailand. Together, the potential user base of Kaia exceeds 250 million, significantly enhancing its global coverage. This lays the foundation for Kaia to create a large-scale and vibrant Web3 ecosystem, the largest in Asia. Other investors in Kaia include Hashed, IDG Capital, and others.

![With Line and Kakao, two major Asian social giants, the potential of 250 million users is ready to unleash. Can Kaia replicate the myth of TON?])https://img-cdn.gateio.im/webp-social/moments-e2c4c8f445aea7363731890329e19975.webp(

)# 1.1.2 Important Milestones

• January 16, 2024: Klaytn and Finschia announced a plan to unify the mainnet.
• August 29, 2024: Kaia mainnet officially launched
• January 2025: LINE Mini DApps plan to go live

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 has over 17,000 employees, and its operating profit for Q3 2024 was 130.5 billion KRW ###9348 USD (, a year-on-year increase of 5%. The platform division, including Kakao Talk, achieved growth, with revenue increasing by 7% to 943.5 billion KRW )7.0763 million USD (.

Klaytn has been designed for DApp developers and enterprises from the very beginning. The ecosystem enables developers to unleash their creativity and enhance user experiences. Klaytn's cumulative transaction volume is $376 billion, with over 29 million Web3 wallet users and more than 240k community members. The ATH Onchain TVL has even reached over $1 billion, in addition to having a strong presence in Singapore and Vietnam.

The South Korean market is inherently crypto-friendly, with its local exchange Upbit becoming a leading exchange in the crypto industry. Web3 projects take pride in being able to be listed on Upbit. Against the backdrop of widespread cryptocurrency trading among South Korean users, the ceiling of Kaia will undoubtedly bring us limitless imagination.

![With Line and Kakao, two major Asian social giants, and the potential of 250 million users ready to be unleashed, can Kaia replicate the myth of TON?])https://img-cdn.gateio.im/webp-social/moments-3cbed4865c75ed678cc29fe60fdc88bf.webp(

)# 1.1.4 Line and Finschia

As the most popular communication platform in Japan, LINE covers 70% of the Japanese population and also holds a dominant position in markets such as Thailand and Taiwan. In Japan, the monthly active users reached 92 million, while the number of users in Thailand surpassed 51 million. ### is the most popular social platform in Thailand (, and the number of users in Taiwan reached 21 million, with the Indonesian market also having 13 million users. This high user penetration rate provides a solid foundation for its advertising, payment, and content services. For example, a major survey on LINE usage behavior conducted by Nielsen in 2024 found 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 messages an average of 14 times a day.

Compared to other social platforms, LINE's unique ecological integration capabilities are particularly prominent. Users can consume its rich content products on LINE, including over 300,000 comic books and 9 games that integrate social interactions. This diversification of features gives LINE a significant advantage in maintaining user engagement. Additionally, the 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's users are highly concentrated and active, and the integration of its advertising and payment functions allows brands and services to precisely reach their target audience. In addition, LINE's regionalization strategy ensures that its platform content closely matches the cultural needs of users, creating an efficient path for Kaia's localized promotion.

LINE's payment ecosystem also 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 its users with a seamless digital payment experience. This payment infrastructure, combined with its highly refined advertising capabilities, reaching over 200 million users on average per month, provides a natural advantage for blockchain projects to establish and expand in the Asia-Pacific market.

Particularly noteworthy is 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 ecosystems.

Finschia, a blockchain under LINE, was launched as early as 2018. After about 5 years of development, it has over 5.6 million Web3 wallet users, more than 170k community members, and occupies 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 applications.

![With Line and Kakao, two major Asian social giants, 250 million user potential is ready to take off. Can Kaia replicate the myth of TON?])https://img-cdn.gateio.im/webp-social/moments-b3813c2b71b05e7b20fbaef58445885f.webp(

Currently, 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, while also meeting regulatory requirements. On the Kakao side, among the six council members of Kaia, 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 proactive role in blockchain initiatives, such as launching mini dApps like LINE. However, once these regulatory uncertainties are resolved and LINE's mini dApp services succeed, Kakao is expected to fully embrace blockchain integration.

) 1.2 Token Economics

(# 1.2.1 Token $Kaia

The native token KAIA of Kaia plays a core role in the blockchain economy, used to pay transaction fees when creating or executing smart contracts or transferring KAIA. It is not only a means of payment for transactions but also provides the driving force for the normal operation of the entire system:

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. Simply put, 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 too 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 consume computing power and bandwidth to support network operation. 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 Rewards, 80% Staking Rewards (
2. KEF) Kaia Ecosystem Fund (: 25%
3. KIF)Kaia Infrastructure Fund(:25%

This distribution model not only incentivizes network participation but also supports 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 invested.
2. The limit 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.

In terms of coin price, Kaia's performance has also been very impressive. Since Klay was renamed to Kaia and went live on several trading platforms, it has been on the rise.

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

)# 1.2.2 Governance Council

With technological advancements driving the rapid growth of the metaverse, decentralized autonomous organizations (DAOs) and developers are becoming significant forces in the new economic landscape. Kaia is keeping pace with this trend by launching the Kaia Governance Council ###Governance Council, GC(, which consists of 31 trusted early members, most of whom are top institutions. These include: Kakao, several well-known trading platforms, Google Cloud, GS HomeShopping) the number one multimedia retailer in South Korea(, LG Uplus) which is part of South Korea's largest company LG Corporation(, Hanwha Systems) the second largest non-bank financial group in South Korea(, Everrich Group) a real estate developer with a primary business focus in South Korea, Taiwan, and Southeast Asia(, HashKey) a leading fintech group headquartered in Hong Kong, focusing on blockchain development(, and NEOPLY) a leading startup accelerator under NEOWIZ, which is a large South Korean online gaming company specializing in blockchain investment(, among others.

Through this choice, the Kaia platform successfully achieved stable operation of the mainnet, ensuring rapid and efficient advancement of technological stability and operational implementation in the early stages of the platform's development, laying a solid foundation for the innovation of subsequent governance models.

Moreover, Kaia has expanded the membership of GC 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 genuine transformation of governance structures—empowering all stakeholders with a greater voice and setting a new benchmark for the decentralized development of the metaverse.

Kaia's governance framework is not only a 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 balances 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.

![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-b1277c4c9804c4b711bfc616242841a3.webp(

) 1.3 Technical Architecture Principles

Kaia is a highly optimized, BFT( Byzantine Fault Tolerant public blockchain, 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 offers:

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