Klaytn (KLAY)

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Overview

Klaytn is a public, EVM-compatible blockchain built for real-world apps. Launched by GroundX, a subsidiary of Kakao in South Korea, the Klaytn blockchain set out to offer very fast transactions, low fees, and tools that are easy for developers to use. Its native asset, the KLAY token, powers the network by paying gas fees and rewarding validators. Klaytn became popular with brands and builders across Asia for DeFi, NFTs, and gaming. Many users also discovered it through KakaoTalk’s built-in Klip wallet, which brought crypto to millions of people. (prnewswire.com)

In 2024, Klaytn and Finschia (the LINE-backed chain) voted to merge their ecosystems into a new network called Kaia. Most exchanges rebranded KLAY balances to the new KAIA coin at a 1:1 ratio, and the combined foundation set up in Abu Dhabi. The new chain keeps Klaytn’s speed and EVM support and plans to add CosmWasm to welcome Cosmos-style apps. If you track KLAY price today, many platforms now display it under the KAIA ticker due to this rebrand. (finschia.io)

History & Team

Klaytn was developed by GroundX, the blockchain arm of Kakao. GroundX’s CEO, Dr. Jaesun (Jason) Han, helped drive the initial design and launch. The mainnet went live in June 2019, focusing on a smooth user experience and enterprise-friendly performance. In 2021, the Klaytn Foundation, a non-profit in Singapore, took over ecosystem growth from GroundX. The Foundation coordinated grants, partnerships, and governance, while GroundX continued contributing technology. (cointrust.com)

From the start, Klaytn worked with large companies through its Governance Council. Over time, members included firms like LG Electronics, Binance, and Maker Foundation, which helped with interoperability and ecosystem development. In 2024, DWF Labs joined as a Governance Council member as the network prepared for its merge-era roadmap. (prnewswire.com)

Funding came from well-known investors. A private token sale in late 2018 raised about $90 million, with backing from Crescendo Equity Partners, IDG Capital, and Translink Capital. Hashed and other Asia-based funds later supported the ecosystem. These early rounds helped Klaytn build out core infrastructure, grants, and partnerships. (icodrops.com)

In February 2024, Klaytn’s governance approved a proposal to merge with Finschia. The integrated foundation chose Abu Dhabi as its base, tapping the ADGM regulatory environment and bringing together over 420 dApps and a potential user base of 250 million messenger-linked wallets across Kakao and LINE. (prnewswire.co.uk)

Technology & How It Works

Klaytn is EVM-compatible, so apps and smart contracts written for Ethereum can run with little or no change. Under the hood, the chain uses an optimized version of Istanbul BFT (a PBFT-style consensus). It targets roughly one-second block times, instant finality, and high throughput. To scale communication among validators, Klaytn selects a small “committee” from a larger “council” using a verifiable random function (VRF). This approach keeps performance high while allowing more validators to join over time. (docs.klaytn.foundation)

The network uses three main node roles:

• Consensus Nodes (CNs) propose and validate blocks.
• Proxy Nodes (PNs) relay transactions and data.
• Endpoint Nodes (ENs) expose RPC APIs for apps and connect service chains. (docs.klaytn.foundation)

A notable design feature is the Service Chain framework. Service Chains are app-specific sidechains that anchor to the Klaytn main chain. They offer instant finality, token transfers across chains, and optional privacy and performance settings for enterprise needs. Data anchoring to the main chain adds integrity to off-chain activity and makes migration easier if an app later moves to the mainnet. (docs.klaytn.foundation)

Developers get familiar standards and tools. Klaytn supports KIP-7 (fungible tokens), KIP-17 (NFTs), and KIP-37 (multi-tokens), all derived from Ethereum’s standards but tailored for Klaytn’s tooling. Kaikas (a browser wallet) and the Klaytn API Service (KAS) simplify building, deploying, and managing accounts, tokens, and fee-payer setups. (kips.klaytn.foundation)

Post-merge, the new Kaia mainnet keeps Klaytn’s EVM flow and plans dual support for EVM and CosmWasm, broadening the developer base across both Ethereum and Cosmos ecosystems. RPC namespaces are moving from “klay_” to “kaia_,” with backward compatibility to ease migration. (prnewswire.com)

Tokenomics & Utility

Before the 2024 merge, Klaytn tokenomics centered on the KLAY token. At genesis, 10 billion KLAY were issued. New KLAY were minted as block rewards and split among network participants and ecosystem funds. A 2023 optimization proposal (KGP-6) restructured emissions to 6.4 KLAY per block (about 200 million per year, near 2% annualized) and updated distributions to:

• Governance Council rewards (proposer + staking): 50% combined
• Klaytn Community Fund (KCF): 30%
• Klaytn Foundation Fund (KFF): 20% (docs.klaytn.foundation)

The same proposal aimed to burn a large portion of uncirculated reserves (initially 5.28 billion KLAY) and designated the remaining 2 billion as a “Value Creation Reserve” to be either deployed via on-chain governance or burned after three years if unused—moving Klaytn toward more sustainable, even deflationary, tokenomics. (prnewswire.com)

What does KLAY do? Historically, holders used the KLAY token to:

• Pay gas fees on the Klaytn blockchain.
• Secure the network through staking (for Governance Council participants).
• Incentivize ecosystem growth via grant and investment programs run by KCF/KFF (previously KGF/KIR).
• Settle app-level activities such as DeFi rewards, NFT minting fees, or in-game transactions. (docs.klaytn.foundation)

Following the Klaytn–Finschia merger, KLAY rebranded to KAIA on exchanges and in wallets. The integrated chain’s vision emphasizes lower base inflation, layered burning tied to activity, and transparent, on-chain management of ecosystem funds—continuing the focus on long-term value in a larger, unified ecosystem. If you look up Klaytn tokenomics today, you’ll see many materials now describe the KAIA coin that replaces KLAY one-for-one. (prnewswire.co.uk)

Ecosystem & Use Cases

Klaytn’s strongest areas have been “Klaytn DeFi, NFTs, gaming,” with major traction in Asia.

• DeFi: KLAYswap is a flagship AMM on Klaytn, offering token swaps, liquidity mining, and cross-chain assets (via Orbit Bridge). It became the main liquidity hub for many Klaytn-based tokens and remains a helpful on-ramp for builders. (docs.klayswap.com)

• NFTs: Klaytn’s KIP-17 standard powers a range of collectibles, membership passes, and in-game items. OpenSea added Klaytn support, and Kaikas integration made NFT trading possible through familiar web wallets. Enterprises also used Klaytn for minting branded NFTs and loyalty assets. (opensea.io)

• Gaming: The chain’s quick finality and low fees suit real-time game economies. DeFi Kingdoms relaunched its “Serendale 2.0” realm on Klaytn in December 2022, supported by cross-chain bridging. NX3’s AVATARA used Klaytn for NFTs, in-game tokens, and fee-delegation to improve onboarding. These examples show why high-speed L1s matter for game UX. (docs.defikingdoms.com)

• Enterprise and identity: With Service Chains and fee delegation, companies built wallets, NFT marketplaces, and supply-chain apps that feel familiar to end users. KakaoTalk’s Klip wallet integrated directly with Klaytn and introduced crypto to tens of millions of users in South Korea. (prnewswire.com)

After the merge, the ecosystem broadened under Kaia, keeping Klaytn’s integrations and planning to expand into RWA tokenization, institutional infrastructure, and a native stablecoin—while staying compatible with Ethereum tooling. (prnewswire.com)

Advantages & Challenges

Advantages often cited by builders:

• Speed and finality: ~1-second blocks and instant finality help apps feel responsive. (docs.klaytn.foundation)
• EVM compatibility: Solidity, standard tools, and familiar token standards (KIP-7/17/37). (docs.klaytn.foundation)
• Service Chains: App-specific chains with anchoring and value transfer to the main chain. (docs.klaytn.foundation)
• Distribution channels: Klip in KakaoTalk, plus a strong base in Korea and Japan post-merge. (prnewswire.com)

Common challenges:

• Decentralization trade-offs: Klaytn used a Governance Council and a selected committee for consensus, which some see as more permissioned than open validator sets. Klaytn’s roadmap highlighted moving toward broader, permissionless validation, a direction reinforced by the merged chain’s plans. (docs.klaytn.foundation)
• Regional focus and competition: Strong Asian presence but heavy competition from Ethereum, BNB Chain, and other EVM L1s/L2s. The Kaia merge aims to expand reach across Asia and beyond by combining the LINE and Kakao ecosystems. (prnewswire.co.uk)

Where to Buy & Wallets

If you’re wondering where to buy KLAY today, note that most major platforms completed the rebrand to KAIA in late October 2024. That means what used to be listed as “KLAY” on many exchanges now appears as “KAIA.” Examples include Binance, KuCoin, Crypto.com, LBank, BitMart, and others that announced 1:1 conversions from KLAY to KAIA and reopened deposits, withdrawals, and trading under the new ticker. (binance.com)

For self-custody, the Kaikas browser wallet continues to support the network and its tokens. Users of KakaoTalk can access the Klip wallet for a simple mobile experience. Because the chain remains EVM-compatible, multi-chain wallets and tools that support custom RPCs can also connect; the main change post-merge is a gradual shift in RPC namespaces (from klay_ to kaia_), while keeping backward compatibility. On-chain swaps are available through KLAYswap (now operating on the merged mainnet). (docs.klaytn.foundation)

Regulatory & Compliance

Klaytn regulatory status varies by region because crypto laws differ. In South Korea, where Klaytn originated, the Act on the Protection of Virtual Asset Users came into force on July 19, 2024. It defines “virtual assets,” sets user-protection rules, and strengthens oversight of exchanges and service providers. This framework shapes how tokens like KLAY/KAIA are listed and managed by Korean platforms. (loc.gov)

After the merger, the integrated Kaia foundation registered in Abu Dhabi Global Market (ADGM), an international financial center with a defined regulatory environment for fintech and digital assets. This base supports enterprise partnerships and institutional engagement across the Middle East and Asia. (medium.com)

Klaytn halal: Many independent Islamic finance reviewers view blockchain utility tokens like KLAY as permissible because they mainly pay network fees and enable digital ownership. In short, KLAY shariah compliant is often answered “yes,” as the token’s core use does not inherently involve interest (riba) or gambling (maisir). As with most technologies, the halal status can also depend on how individual apps on the chain are used. (cryptoummah.com)

Future Outlook

The Klaytn blockchain’s next chapter unfolds under Kaia. The combined network plans to:

• Support both EVM and CosmWasm to attract builders from Ethereum and Cosmos.
• Grow DeFi, NFTs, and gaming by uniting over 420 dApps and the user bases of Kakao and LINE.
• Enhance token design with lower base inflation and activity-driven burning.
• Build tools for institutions, including a native stablecoin and infrastructure for real-world assets (RWA). (prnewswire.co.uk)

For users tracking KLAY price and ecosystem growth, most dashboards now reflect the KAIA ticker. The technology and many apps remain familiar—fast finality, EVM tooling, and strong Asian distribution—while the broader roadmap aims to widen developer choice and deepen adoption across Web3. (cointelegraph.com)

Summary

Klaytn helped shape Asia’s Web3 landscape by pairing Ethereum-style development with fast finality, simple tooling, and consumer-friendly products like the Klip wallet. The KLAY token fueled gas, staking, and ecosystem incentives, and “Klaytn DeFi, NFTs, gaming” became core pillars. In 2024, Klaytn merged with Finschia to form Kaia, rebranding KLAY to KAIA across exchanges and aligning future tokenomics and governance under one foundation in Abu Dhabi. For builders and users, little changes day-to-day: the network stays EVM-compatible, transaction speeds remain quick, and the app ecosystem keeps growing. What does change is scale—by uniting two major Asian ecosystems, the Klaytn blockchain story continues with wider reach, more developer options, and a larger stage for the apps people use every day. (binance.com)