Kaia Blockchain Ecosystem Development Record: On-chain Growth Paradigm Centered on Mini Dapp

1. Overview of the Kaia Blockchain Ecosystem

1.1 Origin and Team Background

Kaia is a new ecosystem formed by the merger of two major blockchain projects: Klaytn under Kakao and Finschia under LINE. Klaytn was launched by Kakao Group's subsidiary Ground X in June 2019, with early governance alliances including well-known South Korean companies such as LG Electronics, Celltrion, and Netmarble. Finschia was originally launched by LINE in August 2018, initially named LINK chain, and was renamed Finschia in 2022. In April 2023, LINE established the Finschia Foundation in Abu Dhabi to operate the Finschia mainnet. In January 2024, the two chains proposed a merger, which will officially merge into the Kaia mainnet by the end of August 2024, under the unified management of the newly established Kaia DLT Foundation.

Kaia is committed to becoming a high-performance L1 public Blockchain focused on large-scale applications, featuring high TPS and developer-friendly characteristics. Its core advantages lie in a mature SDK system and deep integration with mainstream social platforms, supporting various decentralized applications to run directly on platforms like KakaoTalk and LINE. As a public Blockchain based on BFT consensus, Kaia has been highly optimized to achieve enterprise-level reliability and performance, providing underlying support for the next generation of Web3 applications.

1.2 Important Development History

| Time | Event Description | |------|----------| | June 2019 | Ground X launched the Klaytn mainnet | | December 2022 | LINE launched the Finschia mainnet | | April 2023 | LINE established the Finschia Foundation in Abu Dhabi | | August 2024 | Kakao and LINE jointly launched the Kaia mainnet | | April 2025 | Kaia Foundation secures financing led by 1kx and Blockchain Capital | | May 2025 | Tether issues USDT on the Kaia Blockchain |

1.3 Main Features

Kaia adopts a hierarchical node architecture, including core units, consensus nodes, proxy nodes, and endpoint nodes. The mainnet uses an improved Byzantine Fault Tolerance consensus algorithm, achieving 1 second Block time and instant finality, with a theoretical peak throughput of up to 4000 TPS. The network effectively controls communication overhead by randomly electing committee members through VRF. Kaia also provides service chain functionality, supporting cross-chain asset transfers and enterprise-level security requirements.

Kaia is EVM compatible and supports Ethereum ecosystem smart contracts. The platform integrates with various cross-chain bridges to enable asset interoperability. Kaia closely connects with the LINE ecosystem, allowing developers to directly deploy native Dapps within the chat application. In May 2025, Tether officially issued native USDT on the Kaia Blockchain, providing users with stablecoin services.

Kaia adopts a sustainable token economic model, with the native token KAIA used for paying transaction fees and incentivizing network operations. Block rewards are distributed at a fixed ratio to proposers, stakers, the ecological fund, and the infrastructure fund. Kaia supports on-chain governance, allowing for adjustments to the inflation rate and fee structure based on community resolutions.

2. Progress of Ecological Construction

2.1 Kaia Wave Project and Mini Dapp Ecosystem

In August 2024, the Kaia mainnet will launch and the Kaia Wave program will be released, aiming to enable developers to build Mini Dapps for LINE Messenger users through the SDK developed by LINE NEXT. The first batch of Mini Dapp projects will go live in the first quarter of 2025, covering multiple niche tracks. Kaia has also jointly launched the Mini Dapp Growth Competition with the LINE Dapp Portal, focusing on project MAU and on-chain token holder growth.

The concurrently launched Dapp Portal serves as a Mini Dapp directory and entry point, allowing users to discover and use various Dapps without leaving the LINE environment, enjoying a one-stop service experience.

2.2 Kaia Stablecoin plan

Kaia collaborates with Tether to natively issue USDT on-chain in May 2025. These USDT are deployed in the form of native contracts, directly hosted and issued by Tether, ensuring a 1:1 dollar reserve equivalence. The first batch of native USDT has been integrated into the Mini Dapp ecosystem within LINE Messenger, enabling the everyday use of the stablecoin.

Many mainstream exchanges have supported the deposit and withdrawal of USDT-KAIA on-chain. Kaia also plans to promote the issuance of a Korean won stablecoin, leveraging the team's experience in CBDC projects to further enhance the liquidity and application scenarios of the ecosystem.

2.3 Ecological Investment Progress

In April 2025, the Kaia Foundation announced that it secured funding led by 1kx and Blockchain Capital, with participation from well-known institutions such as Galaxy Digital, The Spartan Group, and IDG Capital. These investment institutions will provide deep support in areas such as international market expansion, compliance framework construction, and ecological cooperation networks, helping to accelerate Kaia's globalization process.

2.4 Ecological Strategic Cooperation

Kaia continues to expand strategic partnerships in the dimensions of data visualization, secure custody, asset circulation, scenario implementation, and financial support.

• Integrated with the Dune platform for on-chain data visualization
• Collaborating with Fireblocks to provide secure asset custody for ecosystem partners.
• Establish strategic cooperation with KuCoin to support the listing and promotion of Mini Dapps
• Collaborating with Republic to provide developers with Token economic design and financing support.
• Achieved partnership with MEXC, launched KAIA trading pair and perpetual contract
• Collaborate with Travala to integrate the KAIA payment system
• Integrate with Team Finance, supporting token locking and multi-signature management

2.5 Developer Support and Community Building

Kaia enhances the developer experience and stimulates community vitality through various means:

• Holding Blockchain technology seminars and training courses in Singapore
• Join Kaito's Yapper Leaderboard and launch the creation rewards event.
• Launch DEX Scanner feature to help users monitor on-chain trading opportunities
• Open Kaia Developer Bootcamp pre-registration channel
• Launched the Kaia Agent Kit development suite, supporting AI-driven on-chain Agent construction.

Three, Summary of Excellent Project Cases in the Kaia Ecosystem

3.1 Excellent projects that have completed TGE

1. Elderglade: A globally popular Web3 game, with over 11 million players across all platforms and monthly revenue exceeding 2 million USD.
2. Bombie: A zombie shooting game based on the LINE platform, with over 11 million registered players and an ARPPU of $110.79.
3. Frog Defense: A tower defense game that brings TikTok IP into the Web3 gaming space.
4. Lair: A new generation of liquid staking products built on KIP-163

3.2 Other top projects worth looking forward to

1. SavannaSurvival: A Web3 survival game that integrates automatic combat, educational entertainment, and management simulation.
2. Boxing Star X: A Web3 boxing game that brings an exciting experience to LINE Mini Dapp.
3. DarkStar: A cross-platform space game that integrates Web2 and Web3 elements.
4. Captain Tsubasa: A casual football game based on the classic manga.
5. Slime Miner: Web3 Idle Role-Playing Game
6. Fate War: Kaia's first "Play-to-Earn" RPG game
7. Kyuzo's Friends: A social game based on DNAxCAT IP, connecting the Web2 and Web3 worlds

These outstanding projects demonstrate the strong competitiveness of the Kaia ecosystem in core sectors such as gaming, setting a benchmark for the development of Web3 applications in more verticals. As the ecosystem continues to improve, Kaia is expected to further consolidate its leading position in the Web3 space, driving the transition of applications from "early adopters" to "mainstream users."