Kaia: Partnering with two major Asian social giants, Line and Kakao, with the potential of 250 million users ready to take off.

1. Background Overview of Kaia

1.1 Project Introduction

1.1.1 Establishment and Development History

On January 16, 2024, the two leading blockchain platforms in Asia, Klaytn and Finschia, announced the launch of a unified mainnet plan. These two mainnets originate from the internet giants Kakao and LINE in South Korea and Japan, respectively. On August 29, 2024, the merged Kaia mainnet officially went 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 Ph.D. in high-performance computing and previously served as CKO at KrustUniverse, where he was responsible for leading the development and operations of Klaytn. He also served as the Chief Technology Officer at GroundX(, Kakao's blockchain subsidiary), and worked as an assistant computer scientist at Argonne National Laboratory.

With the support of two giants, Kakao and LINE, Kaia's development is injected with strong momentum. Kakao has a usage rate of 96% in South Korea and has a significant influence in Vietnam. LINE is well-loved by users in Japan, Taiwan, and Thailand. Together, they provide Kaia with a potential user base of over 250 million, significantly enhancing its global coverage. Kaia is expected to greatly improve the popularity and acceptance of blockchain technology in the East Asian market, laying a solid foundation for the large-scale application of blockchain technology; thus creating the largest and most vibrant Web3 ecosystem in Asia. Other investors in Kaia include Hashed, IDG Capital, and others.

1.1.2 Important Milestones

• January 16, 2024: Klaytn and Finschia announced a merger plan
• August 29, 2024: Kaia mainnet officially launched
• September 2024: Kaia Wave Creator Program Launch
• January 2025: The first batch of LINE mini program DApps is planned to be 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, 90% of whom are from South Korea. The company employs over 17k people, and the operating profit for Q3 2024 was 130.5 billion won (9348 million USD ), a year-on-year increase of 5%. The platform department's revenue grew by 7%, reaching 943.5 billion won (7.0763 million USD ).

Klaytn has been designed for DApp developers and enterprises from the very beginning. This ecosystem enables developers to unleash their creativity and enhance user experience. 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 reached over $1 billion, and it also has a strong influence in Singapore and Vietnam.

1.1.4 Line and Finschia

LINE, as the most popular communication platform in Japan, covers 70% of the Japanese population and also holds a dominant position in markets such as Thailand and Taiwan. The monthly active users in Japan reach 92 million, Thailand surpasses 51 million, Taiwan reaches 21 million, and the Indonesian market has 13 million users.

LINE's ecological integration capabilities are outstanding. Users can consume its rich content products, including over 300,000 comic books and 9 games integrated with social interactions. An average usage time of more than 4 hours per week highlights its irreplaceability in users' daily lives.

LINE's payment ecosystem demonstrates its potential in the blockchain economy. LINE Pay has 40 million monthly active payment users and an annual transaction volume exceeding 12 billion USD. Its highly refined advertising capabilities reach over 200 million users per month, providing a natural advantage for blockchain projects to land and expand in the Asia-Pacific market.

The LINE Miniapp plan serves as a bridge connecting Web2 and Web3, allowing existing users to easily access decentralized applications. By deeply integrating its payment, advertising, and communication ecosystems, it has built a highly compatible development environment.

Finschia was launched in 2018, and after about 5 years of development, it has over 5.6 million Web3 wallet users, more than 170k community members, and holds an important position in Japan, Taiwan, Thailand, and Abu Dhabi.

Kaia has confirmed that it will launch the SDK for Line mini programs and will list the first batch of Line mini program applications in January 25. On Kakao's side, among the 6 council members of Kaia, 3 are from Kakao's blockchain Klaytn. Kakao and its affiliates hold about 9.8% of Kaia's total supply and actively participate in its governance. Once the regulatory uncertainties in South Korea 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

Kaia's native token KAIA plays a core role in the blockchain economy, used for paying transaction fees. It is not only a means of payment for transactions but also provides the necessary power for the normal operation of the entire system.

1. Incentive Mechanism: Platform customers incentivize consensus nodes ###CNs### by paying KAIA, as these nodes are responsible for validating transactions and executing smart contracts.

2. Promote Development Quality: The fees paid with KAIA are proportional to the complexity of the smart contract and resource consumption. This mechanism encourages developers to optimize code quality and avoid wasting computational resources.

3. Maintain Network Health: CN nodes support network operation by consuming computing power and bandwidth; receiving 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%

The on-chain governance system implemented by Kaia aims to achieve fairness and inclusivity:

1. Voting rights are proportional to the number 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 the exchange, the price of the coin has been rising.

(# 1.2.2 Governance Council

Kaia has launched the Governance Council ), GC###, which is composed of 31 trusted early members, most of whom are top institutions. This includes: Kakao, Google Cloud, GS HomeShopping, LG Uplus, Hanwha Systems, Everrich Group, HashKey, NEOPLY, and others.

Kaia has also expanded the membership of GC from traditional enterprises to DAOs and builders, in order to meet the needs 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.

In addition, Kaia has been working closely 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.

( 1.3 Technical Architecture Principles

Kaia is a highly optimized, BFT-based public blockchain designed 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 price, about 1/10 of Ethereum.
4. EVM compatible, supports Solidity contracts.
5. The Kaia Governance Committee, composed of globally renowned enterprises, conducts governance.

The network structure of Kaia is divided into three logical sub-networks:

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

(# 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 block generation, managed by the core node operator ( CCO ).
2. Proxy Nodes, PN(: Transmit 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, used to help new nodes join the network.

The issue of increased communication volume in the BFT algorithm is resolved by utilizing a randomly selected committee. The CN collective forms a committee, and at the generation of each block, a verifiable random function ( is used to randomly select a portion of them as committee members. The main process is:

1. Random Selection Committee: Use VRF to fairly randomly select a group of people who are responsible for generating and validating 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 will generate a new block. The block contains the transaction data that needs to be processed.

3. Verification and Signing: The validators in the committee will 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.

![With two major Asian social giants Line and Kakao, and a potential of 250 million users, can Kaia replicate the myth of TON?])https://img-cdn.gateio.im/webp-social/moments-275e81b1388261a820b2b6938cd7235e.webp(

)# 1.3.2 Block Generation and Propagation

The block generation and propagation design of Kaia is simple and efficient, ensuring the stability and scalability of the system. The specific features are as follows:

1. Rapid Block Generation: The goal of each round of operations is to generate a block within 1 second, which is considered a highly efficient design in the blockchain field.

2. Random but Deterministic Election Process: Although the election of proposers and committee members is random, the process is determined by an algorithm, and all nodes can verify this randomness.

3. Two-thirds signature rule: A new block can only be added to the blockchain after more than two-thirds of the committee members have signed in agreement.

4. Multi-channel propagation: To avoid network congestion, Kaia adopts a method of independent propagation for blocks and transactions, similar to transmitting different information on different lanes.

(# 1.3.3 Kaia Virtual Machine ) KVM (

Kaia's virtual machine ) KVM ### is a core component for running smart contracts, designed with compatibility and scalability in mind, with main features including:

1. Based on the Ethereum Virtual Machine ###EVM(: Kaia directly inherits the architecture of the Ethereum Virtual Machine, thus all Ethereum