Kaia: From Chats to Chains – Inside LINE and Kakao’s Web3 Strategy

Abstract

This report provides a comprehensive analysis of Kaia, a public blockchain formed through the strategic merger of Klaytn (backed by Kakao) and Finschia (backed by LINE).
The report explores Kaia’s technical foundations, governance structure, tokenomics, ecosystem development, and strategic integrations with major messaging platforms like KakaoTalk and LINE.

Key Takeaways (TL;DR) 

• The Merger: Kaia was born from the merger of Klaytn (Kakao) and Finschia (LINE) to create a unified and robust blockchain ecosystem.
  
• Potential To Tap Into A Global User Base: Kaia gains access to a combined user base exceeding 250 million via KakaoTalk & LINE, facilitating widespread adoption.
• Diverse Ecosystem and Governance: Kaia supports over 420 decentralized applications (dApps) and collaborates with more than 45 governance partners, fostering a diverse and decentralized network.
  
• Kaia Wave – Web3 Adoption Through LINE: Kaia Wave integrates dApps directly into the LINE messaging app via a Mini dApp Portal, allowing millions of users to access Web3 services through familiar mobile interfaces.
  
• Developer Flexibility: Kaia is compatible with both Ethereum Virtual Machine (EVM) and CosmWasm, making it accessible to both Ethereum and Cosmos builders.
  
• Growth and Infrastructure: Kaia’s Total Value Locked (TVL) peaked at $126 million, and the platform is actively developing a native stablecoin and decentralized finance (DeFi) infrastructures to enhance its financial ecosystem.

1. Introduction to KAIA

1.1 What is Kaia? 

Kaia is a next–generation layer 1 blockchain born from the strategic merger of Klaytn (backed by Kakao) and Finschia (backed by LINE). This strategic union in the Web3 space brought together two of Asia’s well established blockchain ecosystems, which launched the Kaia mainnet on August 29, 2024.

1.2 Kakao and Klaytn

Klaytn was launched in 2019 by Ground X, the blockchain arm of Kakao Corp and was designed as a high-performance, developer-friendly Layer 1 platform tailored for real-world business applications. Backed by one of South Korea’s tech giants, Klaytn quickly emerged as a leading blockchain in Asia.

To date, it has facilitated over $376 billion in transaction volume and supports more than 29 million Web3 wallets. At its peak, Klaytn’s total value locked (TVL) surpassed $1 billion, with strong adoption in markets like South Korea, Singapore, and Vietnam.

A key driver of this growth was Klaytn’s seamless integration with KakaoTalk (KaTalk), South Korea’s dominant messaging app, boasting 54 million active users worldwide in the second quarter of 2024. Through Klip, a built-in crypto wallet within the app, users can store KLAY tokens and engage with dApps and NFTs directly—lowering friction and expanding blockchain use among mainstream users.

To further scale Klaytn’s global reach and ecosystem development, Kakao established Krust Universe in 2021, a Singapore-based accelerator dedicated to supporting Web3 innovation and expanding Klaytn’s international presence.

Figure 1: Klip Digital Wallet

1.3 LINE and Finschia

Finschia, formerly known as LINE Blockchain, represents LINE Corporation’s strategic initiative to embed blockchain technology within its vast digital ecosystem. As one of Asia’s most popular messaging platforms—with approximately 178 million monthly active users across Japan, Thailand, Taiwan, and Indonesia, including over 96 million in Japan alone—LINE leveraged its scale to bring Web3 services to the mainstream.

The company began its blockchain journey in 2018 with the launch of LINE Blockchain Lab, aiming to explore decentralized applications (dApps), NFTs, and DeFi. This vision led to the development of the LINE Blockchain, which was rebranded as Finschia in 2023. Its native token, originally launched as LINK (LN), was also renamed to Finschia (FNSA) in May 2023 to align with the new brand identity.

By 2024, Finschia had secured 6.5 million wallets and gained traction as a global NFT platform through DOSI, which achieved 4.8 million users, 21 million NFTs minted, 240,000 active trading users, and 870,000 total trading transactions. Through Finschia, LINE has played a pivotal role in expanding blockchain adoption across Japan and Southeast Asia, following a similar path to Kakao’s development of Klaytn in Korea.

Figure 2: Timeline Summary From Pre-Merger To Kaia Launch

2. Klaytn Finschia Merger

In January 2024, Klaytn Foundation and Finschia Foundation proposed merging their respective blockchain ecosystems to establish Asia’s largest Web3 network. This strategic initiative aimed to combine their technological strengths, diverse services, and extensive user bases (LINE and Kakao) to accelerate blockchain adoption across the region.​

2.1 Key Highlights of the Merger

The merger marks a pivotal step toward establishing a unified Web3 infrastructure, combining Klaytn’s enterprise-grade blockchain capabilities with Finschia’s expertise in decentralized applications. This collaboration aims to unlock synergies in infrastructure, governance, and incentives, enabling developers and users to benefit from a more resilient and expansive decentralized network.

Figure 3: Project Dragon, Birth of Kaia

2.1.1 Unified Ecosystem

The merger brought together Klaytn’s robust infrastructure and strong foothold in South Korea, Singapore, and Vietnam with Finschia’s extensive service network across Japan, Taiwan, Thailand, and Abu Dhabi. The unified ecosystem now supports over 420 decentralized applications (dApps) and services, backed by more than 45 governance partners. By integrating with widely used messaging platforms like KakaoTalk and LINE, the network gains access to a combined potential user base of over 250 million, paving the way for seamless and scalable Web3 experiences across Asia and beyond.

2.1.2 Technological Integration

Kaia’s performance architecture is designed for scalability and real-time responsiveness. It leverages an enhanced Istanbul BFT consensus mechanism with Verifiable Random Functions (VRF) to achieve instant finality and reduce exposure to targeted DoS attacks. Kaia also employs multi-channel broadcasting, separating transaction and block propagation to prevent congestion-related delays. Beyond consensus, Kaia’s developer environment supports the Ethereum Virtual Machine (EVM) and the smart contract platform built for the Cosmos ecosystem (CosmWasm), enabling broad tooling compatibility and modular smart contract development. Its expanded account model introduces features like multi-signature roles and fee delegation, which improve wallet usability and security for both retail and enterprise users. Together, these innovations form the technical backbone that enables Kaia’s high throughput and seamless dApp experiences.

2.1.3 Tokenomics Overhaul

The native tokens of Klaytn (KLAY) and Finschia (FNSA) were replaced by a new unified coin, Kaia (KAIA). The updated tokenomics introduced a reduced base inflation rate of 5.2% alongside a three-layer burning mode (transaction-based burning, maximal extractable value burning, business-based burning) designed to push the coin toward deflation as network activity grows. As part of the Zero Reserve Tokenomics initiative, approximately 24% of newly issued tokens—representing the majority of non-circulating KLAY were immediately burned, reinforcing transparency and enhancing long-term value for token holders.

2.1.4 Governance and Decentralization

The governance structures of both blockchains were unified to establish a decentralized framework involving over 45 global enterprises. As part of the transition, plans for permissionless node validation were introduced to enable broader participation in securing the network, strengthening both openness and resilience. Kaia also supports transparent, on-chain voting mechanisms, empowering token holders and governance council members to vote on proposals ranging from protocol upgrades and funding allocations to key ecosystem initiatives.

3. Kaia Wave

Kaia Wave is a collaborative initiative between Kaia and LINE NEXT, designed to accelerate the adoption of Web3 technologies by integrating decentralized applications (dApps) into the widely used LINE Messenger platform. This approach draws inspiration from platforms like WeChat, where mini programs embedded within messaging apps became a cornerstone of digital commerce and user engagement in Asia.

3.1 Mini dApp Portal

A key component of Kaia Wave is the mini dApp Portal, a service that enables users to access various mini dApps directly within LINE Messenger without the need for separate installations. This integration removes the initial Web3-specific barriers, such as downloading a wallet, and separate apps to use Web3 services, allowing for effortless interaction through familiar Web2 interfaces. Additionally, the social login feature streamlines wallet creation and logins to a simple process, making Web3 engagement more accessible to non-crypto-native users.

The portal has already seen significant interest, with over 800 project teams applying to participate. From these, 32 dApps have been launched, encompassing a range of services from gaming to healthcare. 

Notable examples include:

1. Games:

• Bombie and Cattea: A game by Pluto Studio, which previously attracted 43 million users in six months. 
• Captain Tsubasa -RIVALS- on LINE: A game based on the popular soccer manga.
• Shin-chan’s Match Daily: A mini-game based on the famous animated series “Crayon Shin-chan,” offering fans an interactive experience within the LINE Messenger ecosystem. ​

2. Healthcare:

• Superz: A healthcare and wellness gateway dApp designed for non-crypto users, seamlessly blending fitness habits with tangible rewards.

3. Social Apps:

• YuliGo: A “Social to Earn” platform, designed for content creation and monetization within the Web3 space.
• Futr: A prediction platform where real world outcomes meet social connections. Futr lets users predict events and engage through its vibrant social media hub.

3.2 First Month Performance Overview

In its first month since launch, the Mini dApp portal on LINE has demonstrated remarkable success, attracting over 35 million cumulative users across major Asian markets, including Korea, Japan, Taiwan, and Thailand. This surge in user engagement has translated into substantial financial success, with total in-app purchases reaching approximately 2.9 billion won (around $2 million USD). The platform also reported an Average Revenue Per Paying User (ARPPU) of 55,000 won (about $39 USD) and a Paying User Ratio (PUR) of 13%, highlighting strong monetization and user willingness to invest in the services offered.

Figure 4: LINE’s Mini dApp Growth

This initiative led to the creation of approximately 3 million new digital wallets, elevating the total number of wallets in the Kaia ecosystem to 7.37 million, a remarkable 1,168% increase.
This surge in wallet adoption has significantly strengthened the Kaia ecosystem, with Kaia now standing as the third-largest Ethereum Virtual Machine (EVM) blockchain globally in terms of active wallet addresses. ​
Furthermore, the platform witnessed a 124% rise in monthly on-chain transactions, totaling 27.38 million, and a 252% increase in active users, reaching 8.1 million.

Figure 5: Kaia’s Growth Since Mini dApp Launch

This Mini dApp supports both KAIA and fiat payments, fostering a hybrid model that combines the user-friendly aspects of Web2’s Free-to-Play (F2P) and in-app purchase systems with the liquidity and ownership advantages of digital assets. Such an approach empowers Kaia to establish sustainable revenue streams, reducing dependence on token generation events (TGE), transaction fees, and token price fluctuations. The hybrid payment model is further strengthened by future initiatives like introducing a native stablecoin on the Kaia blockchain.

Figure 6: Key Features of Mini dApp

4. Kaia’s Ecosystem & Partnerships

4.1 Kaia Ecosystem

The Kaia ecosystem is supported by a diverse network of strategic partners driving innovation and adoption across the blockchain space. Key collaborators include Republic, KuCoin, Bitget, and CARV, alongside integrations with decentralized platforms like 1inch Network. These partnerships enhance Kaia’s capabilities in areas such as DeFi, identity infrastructure, and ecosystem development.
The ecosystem is structured into three main layers:​

1. Application Layer: This layer comprises of dApps such as DEXs, lending protocols, and NFT marketplaces.​
   
2. Middleware Layer: This layer includes utility projects and systems like oracles, security services, and blockchain explorers.​
   
3. Core Infrastructure: This foundational layer consists of validators and chain information providers, ensuring the network’s reliability and performance.

Figure 7: Kaia Ecosystem Map

4.2 Notable Integrations

FlareAI: FlareAI is the first AI-powered dApp launched on Kaia. FlareAI aims to revolutionize AI development by addressing challenges such as data quality, efficiency, and privacy. By leveraging Kaia’s low-latency transactions and seamless integration with LINE, FlareAI delivers real-time responses and high throughput for AI operations.

GPC (Gold-Pegged Coin): GPC is a 100% physical gold-based real world asset (RWA) issued on Kaia blockchain, fully backed by physical gold. Developed by the GOLDSTATION Foundation, GPC enables investors to engage in gold investment without the challenges of handling and storing physical bullion. 

X2Y2 Pro: X2Y2 Pro is a multichain marketplace tailored for NFT traders, offering services such as trading, buying, and loaning of NFTs. X2Y2 Pro integration with Kaia enhances the NFT trading experience by enabling users to seamlessly trade Kaia-based NFTs on the X2Y2 Pro platform. Notably, NFTs from games like “Meta World: My City” and “The King of Fighters ARENA,” issued on the Kaia Chain, are now tradable via X2Y2 Pro. ​

FlareAI: FlareAI is the first AI-powered dApp launched on Kaia. FlareAI aims to revolutionize AI development by addressing challenges such as data quality, efficiency, and privacy. By leveraging Kaia’s low-latency transactions and seamless integration with LINE, FlareAI delivers real-time responses and high throughput for AI operations.

GPC (Gold-Pegged Coin): GPC is a 100% physical gold-based real world asset (RWA) issued on Kaia blockchain, fully backed by physical gold. Developed by the GOLDSTATION Foundation, GPC enables investors to engage in gold investment without the challenges of handling and storing physical bullion. 

X2Y2 Pro: X2Y2 Pro is a multichain marketplace tailored for NFT traders, offering services such as trading, buying, and loaning of NFTs. X2Y2 Pro integration with Kaia enhances the NFT trading experience by enabling users to seamlessly trade Kaia-based NFTs on the X2Y2 Pro platform. Notably, NFTs from games like “Meta World: My City” and “The King of Fighters ARENA,” issued on the Kaia Chain, are now tradable via X2Y2 Pro. ​

4.3 Strategic Partnerships

Kaia has formed alliances with several key organizations to boost its ecosystem and reach:​

• Bitget: In January 2025, Bitget partnered with the Kaia Foundation to accelerate the growth of mini-dApps on LINE Messenger. This partnership aims to identify promising Mini-dApps and offer comprehensive support in areas such as incubation, advisory services, listing, and go-to-market strategies to ensure their success.
  
• Republic: In February 2025, Kaia partnered with Republic to accelerate developer engagement within the LINE Mini dApp ecosystem. The partnership focuses on leveraging Republic’s Web3 advisory expertise to support dApp builders, offering guidance on ecosystem design, token models, and strategic fundraising. The collaboration aims to foster innovation and scale adoption by helping developers build sustainable, user-centric applications within Kaia’s growing ecosystem.
  
• HashKey Global: In January 2025, HashKey Global announced support for Kaia’s blockchain expansion plans, including collaboration with LINE NEXT to launch mini dApps on LINE Messenger. HashKey provides assistance in tokenomics, trading infrastructure, and strategic initiatives to promote global Web3 adoption.
  
• KuCoin: In January 2025, KuCoin and Kaia established a strategic partnership, with KuCoin providing incubation support, technical expertise, and marketing for Kaia’s ecosystem projects. This includes initial reviews for listing, to ensure high-quality Mini-dApps are launched on Kaia’s dApp Portal within LINE Messenger.
  
• CARV: In October 2024, the Kaia Foundation partnered with CARV to integrate decentralized identity and data management solutions into the Kaia blockchain. The collaboration focuses on enhancing data ownership, user privacy, and secure identity verification across the ecosystem. This strategic integration aims to provide foundational infrastructure for trusted, user-centric dApps and services within Kaia.

5. Kaia’s Competitive Edge & Use Cases

​5.1 Kaia’s Competitive Advantage

1. Integration with Major Messaging Platforms:
   Kaia’s integration with LINE and KakaoTalk enables users to access decentralized applications (dApps) directly within these widely-used messaging apps, facilitating broader adoption of Web3 services.
   
2. High Performance and Scalability:
   Kaia achieves 1-second block times with immediate finality, supporting up to 4,000 transactions per second (TPS). This ensures rapid and reliable transaction processing, essential for real-time applications.
   
3. Low Transaction Costs:
   The platform offers transaction fees approximately one-tenth of those on Ethereum, making it economically viable for both developers and users.
   
4. EVM Compatibility:
   Full compatibility with the Ethereum Virtual Machine (EVM) allows developers to seamlessly migrate and build existing Ethereum-based applications to Kaia, utilizing familiar tools and frameworks.
   
5. Strategic Positioning in the GameFi Sector:
   The GameFi industry is currently dominated by a small group of major players, including Axie Infinity, Yield Guild Games, Gala Games. Kaia’s integration with widely-used messaging platforms, robust infrastructure and market potential puts Kaia in a strategic position to become a bluechip GameFi player.

5.2 Competitive Analysis: Kaia vs. Ton

Both Kaia and The Open Network (Ton) are next-generation Layer 1 blockchains targeting mass adoption through messaging platforms and user-friendly infrastructure. However, their approaches have some differences in architecture and strategy.

Kaia, born from the merger of Klaytn and Finschia, leverages its integration with LINE and KakaoTalk to access over 250 million users. Kaia positions itself as a developer-friendly, enterprise-grade chain focused on Asia.

In contrast, Ton, initially developed by Telegram before regulatory hurdles led the project to become fully open-source and community-driven. It is still tightly integrated with Telegram’s ecosystem and is rapidly growing via simplified UX and low fees. 

While both chains aim to bridge Web2 and Web3, Kaia emphasizes regulated, enterprise adoption through ecosystem partnerships, whereas Ton leans toward open-source, scalable decentralization at a global level.

5.2.1 Ecosystem & Go-to-Market Strategy

Figure 8: Kaia and Ton Comparison

Kaia leverages its integration with LINE and KakaoTalk to access a huge user base. This integration simplifies user onboarding and facilitates the development of decentralized applications (dApps) within familiar messaging environments. 

Conversely, Ton has become the exclusive blockchain infrastructure for Telegram’s Mini App ecosystem, supporting Telegram’s global user base of over 950 million monthly active users. Its open source characteristic enables developers and community members to create Mini Apps and new initiatives that operate seamlessly within Telegram, enhancing user experience and fostering broader adoption of blockchain-based services. 

5.2.2 On Chain Comparisons

Figure 9: Kaia & Ton Transaction Count and Weekly Average User Comparison

Ton initially recorded a significantly higher transaction count compared to Kaia, peaking at nearly 100 million weekly transactions around September 2024. This surge was driven by several key factors, including the launch of viral Telegram-based applications and large-scale token airdrops. However, activity on the Ton network declined sharply in the following month. These are some of the notable catalysts for the surge in transactions:

Introduction of Viral Tap-to-Earn Games: 

In early to mid-2024, the introduction of tap-to-earn games like Hamster Kombat and Catizen significantly boosted user engagement on Ton. These games attracted millions of players by offering token rewards for in-game activities. Hamster Kombat, for instance, amassed over 300 million players by late July 2024. The anticipation surrounding their airdrop and its subsequent listing on major exchanges such as Binance, Bybit, KuCoin, and Gate.io on September 26, 2024. This surge in participation led to a notable increase in weekly transactions on the Ton blockchain during that period.​

Emergence Of Memecoins:

​In mid-2024, Ton experienced a notable increase in transaction volumes influenced by the introduction of the DOGS memecoin. Launched in July 2024, DOGS is a Telegram-native memecoin that quickly garnered attention within the crypto community. A substantial airdrop commenced on August 16, 2024, distributing over 400 billion DOGS tokens to approximately 42.2 million eligible users. This large-scale distribution led to a significant uptick in user engagement and trading activity on the Ton blockchain.

While Kaia’s growth trajectory has been slower, it reflects a more consistent pattern of user adoption over time. By early 2025, Kaia began narrowing the gap and eventually surpassed Ton in total transaction volume, a shift that suggests deeper ecosystem engagement, potentially driven by sustained activity from initiatives like Mini dApps. However, despite Kaia’s rise in volume, Ton consistently outperforms Kaia in average transactions per user, indicating stronger user engagement and tighter integration at the app layer. From late 2024 to early 2025, Ton maintains steady transactional growth, signaling high stickiness and retention. In contrast, Kaia’s activity remains erratic, with short-lived transaction spikes likely tied to isolated events such as dApp launches.

Figure 10: Kaia and Ton TVL Comparison

As of March 2025, Ton boasts a Total Value Locked (TVL) of approximately $182 million, reflecting an 8.46% increase over the past 24 hours. In contrast, Kaia has a TVL of around $35.37 million.

Figure 11: Kaia & Ton Weekly Active Users (WAU) Comparison

Ton led in WAU through 2024 but has steadily declined, while Kaia gradually grew and overtook Ton in March 2025. This suggests shifting adoption momentum, with Kaia gaining users steadily despite ongoing challenges in sustaining consistent per-user activity.

6. How to Build & Deploy on Kaia’s Mini dApp Portal

6.1 Deploying on Kaia

To participate and deploy on the Mini dApp, developers can submit their application through the Kaia Wave portal. Participating provides access to resources such as the Mini dApp SDK, and may offer investment and marketing assistance. 

Developers have two primary methods to deploy Mini dApps using Kaia’s infrastructure:​

1. Integration with LINE Messenger:
   Utilizing the LINE Front-end Framework (LIFF), developers can create Mini dApps that operate seamlessly within the LINE Messenger app. This approach allows users to access dApps directly through LINE’s interface, providing a seamless and user-friendly experience. ​
   
2. Standalone Web Deployment:
   Developers can also create a web version of their Mini dApp to cater to users who may access it outside of LINE Messenger, ensuring broader accessibility.

The two main ways of building mini dApps on the LINE platform are using Unity WebGL and Cocos Creator. 

Figure 12: Deployment process using Unity WebGL

Figure 13: Deployment Process Using Cocos Creator

Figure 14: Overview of Building a Mini dApp

7. Kaia Network Architecture

7.1 Network Architecture

Kaia’s network architecture is meticulously designed to balance high performance, scalability, and decentralization. It comprises three primary subnetworks.

1. Core Cell Network (CCN): Responsible for transaction verification, block creation, and execution. This layer ensures the network’s security and consensus mechanisms operate efficiently.

2. Endpoint Node Network (ENN): Handles API requests and processes data for auxiliary service chains.

3. Service Chain Network (SCN): Operates independently while connected to the main chain, enabling scalable development of decentralized applications (dApps) tailored to specific use cases.​

7.2 Tokenomics and Incentive Structure

Kaia’s native token: KAIA

Kaia generates 6.4 KAIA tokens with every new block, adding up to roughly 200 million newly minted tokens each year, which corresponds to an annual inflation rate of around 5.2%.

Block rewards are distributed as follows:

CCO and Community: 50% (20% Block Creator rewards, 80% Staking rewards)

KEF (Kaia Ecosystem Fund): 25%

KIF (Kaia Infrastructure Fund): 25%

Figure 15: Kaia’s Funding Structure:

Kaia employs a three-layer burning model to regulate the supply of its native token, KAIA, aiming to prevent excessive inflation and maintain token value stability. This model comprises three distinct mechanisms:

1. Transaction-Based Burning​
   When users conduct transactions on the blockchain, a portion of the transaction fees is automatically burned. This burning mechanism can impact the earnings of node operators, hence the extent of transaction-based burning is determined through consensus among key network participants via on-chain governance.
   
2. MEV(Maximal Extractable Value) Burning
   ​Validators in blockchain networks have the ability to determine the order of transactions during block proposals, which can lead to additional profits through practices like MEV. This capability, however, raises concerns regarding censorship and fairness within the network. To address these issues, Kaia Blockchain is exploring mechanisms such as on-chain auctions to diversify validator authority. Additionally, a portion of the profits generated by validators through these specialized roles is subject to burning.
   
3. ​Business-Based Burning is a mechanism designed to align the interests of individual services with the value of the KAIA token. This burning process is implemented through collaborations with ecosystem services and business partnerships. To foster initial growth, these services may receive support from initiatives like the Kaia Ecosystem Fund. Since the value of the KAIA token directly influences the success of services utilizing Kaia, it encourages these services to incorporate KAIA burning mechanisms into their operations.​

8. What’s next for Kaia?

8.1 Future Upgrades

8.1.1 Integration with LINE and Mini dApps

Kaia has partnered with LINE NEXT to integrate Mini dApps and a dApp Portal directly within the LINE messaging app, launching 32 Mini dApps, with more scheduled to be released as part of Kaia’s phased rollout strategy.
This initiative is a major step toward mainstream adoption of Web3, offering seamless access to decentralized applications through one of Asia’s most widely used mobile platforms. With hundreds of millions of users across Japan, Taiwan, and Southeast Asia, LINE serves as an ideal gateway for onboarding non-crypto-native users into the Kaia ecosystem.

Key Benefits:

• Frictionless onboarding: Users will be able to interact with dApps without the need for browser wallets, seed phrases, or switching to external platforms. This removes one of the biggest pain points in Web3 adoption.
  
• Embedded UX: By placing dApps inside a familiar interface like LINE, users are more likely to engage regularly, much like how WeChat mini-programs became integral to China’s digital economy.
  
• Mass-market reach: Unlike traditional crypto platforms that rely on niche user bases, Kaia is positioning itself to scale Web3 usage to a mass audience.
  
• Network effect: As more users engage with dApps through LINE, developers will be incentivized to build on Kaia, strengthening its overall ecosystem.

8.1.2 DeFi Ecosystem Expansion: The D2I Program

DeFi Ecosystem Expansion: Kaia is actively enhancing its DeFi infrastructure. Kaia’s D2I program, initiated to increase liquidity in the DeFi ecosystem, has onboarded key partners like Dragonswap and CapyBara. 

Key Benefits:

• Liquidity infrastructure: Without deep liquidity, DeFi protocols struggle. D2I helps bootstrap liquidity for new projects launching on Kaia.
  
• Trusted partners: Onboarding known DeFi projects like DEXs improves trust among developers and users.
  
• Network stickiness: If successful, protocols integrated through D2I may become permanent infrastructure on Kaia, similar to Aave or Curve on Ethereum.

8.1.3 Native USD Stablecoin Launch

Discussions are underway with major stablecoin issuers to introduce a native USD stablecoin on the Kaia chain. 

Key Benefits:

• Reduces systemic risk: Using bridged/wrapped stablecoins creates vulnerability. A native coin is more secure, faster, and cost-effective.
  
• Boosts DeFi utility: All major DeFi platforms rely on stablecoins for lending, AMMs, staking, etc. Without one on the network, growth is severely limited.
  
• LINE payment integration: The native stablecoin is expected to be the backbone of LINE Mini dApp payments, unlocking real-world use cases like in-game payments, tipping, and P2P commerce.

“Sam Seo (Chairman of Kaia Foundation): We are in discussion with a major stablecoin issuer to issue a native USD-based stablecoin on the Kaia chain. Once our discussions and negotiations are successfully concluded, Kaia can provide native stablecoins to its DeFi ecosystem while implementing a stablecoin payment mechanism in LINE Messenger’s Mini dApps. This will facilitate seamless operation of LINE’s Mini dApps and dApp Portal and further drive the growth of our DeFi infrastructure.”

Figure 16: Kaia Growth Initiatives

9. Conclusion

9.1 Future Outlook

Kaia is well-positioned to become a dominant force in Asia’s Web3 ecosystem. The merger has consolidated technological strengths and market access across key regions, while integrations with KakaoTalk and LINE offer an unparalleled user funnel into decentralized services. Kaia also has deflationary tokenomics and a strong governance structure that further signal long-term sustainability. Going forward, success will depend on sustained developer activity, increasing Mini dApp traction, and the ability to onboard existing users on the messaging apps into active on-chain participation—particularly in areas like DeFi and GameFi.

9.2 Closing Thoughts 

While Kaia’s foundations are solid, the next phase is about execution. Ton has already demonstrated how seamless integration with a messaging platform like Telegram can rapidly scale on-chain activity and user adoption. Kaia has a rare opportunity to emulate this success by leveraging its access to over 250 million users via KakaoTalk and LINE. If it can convert this reach into real on-chain engagement, backed by strong tokenomics and developer incentives. Kaia could become one of the leading Layer 1 ecosystems not only in Asia but globally. The roadmap is clear, what matters now is sustained momentum.