Kaia Ecosystem Evolution: On-Chain Growth Paradigm Centered on Mini Dapp

1. Overview of the Kaia Blockchain Ecosystem

1.1 Origins and Team Background

Kaia is the new ecosystem formed by the merger of Kakao and LINE's two major blockchain projects, Klaytn and Finschia. Klaytn was launched by Kakao's subsidiary Ground X in June 2019, with early governance alliances including well-known Korean companies such as LG Electronics, Celltrion, and Netmarble. Finschia, on the other hand, was launched by LINE in August 2018 and established a foundation for operation in Abu Dhabi in April 2023. In August 2024, the two chains officially merged into Kaia, which is managed uniformly by the newly established Kaia DLT Foundation.

Kaia aims to become a high-performance L1 public chain focused on large-scale applications, featuring high TPS and developer-friendly characteristics. Its core advantage lies in its mature SDK system and deep integration with KakaoTalk and LINE platforms, supporting various decentralized applications to run directly on these mainstream social platforms. As a public chain based on the BFT consensus mechanism, Kaia is committed to achieving enterprise-level reliability and performance, providing underlying support for the next generation of Web3 applications.

1.2 Important Development History

• 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 launch the Kaia mainnet
• April 2025: Kaia Foundation received investment led by 1kx and Blockchain Capital
• May 2025: Tether issues USDT on the Kaia chain.

1.3 Main Features

Kaia adopts a layered node architecture, including core units, consensus nodes, proxy nodes, and endpoint nodes. It uses an improved Byzantine Fault Tolerance consensus algorithm to achieve a 1-second block time and instant finality, with a theoretical peak throughput of approximately 4000 TPS. Committee members are randomly elected through a verifiable random function, effectively controlling communication overhead and ensuring security.

Kaia is EVM compatible and supports Ethereum ecosystem smart contracts. It is integrated with various cross-chain bridges to achieve asset interoperability with chains like Ethereum. It closely connects with the LINE ecosystem, allowing developers to deploy native Dapps directly within the chat application. In May 2025, Tether will issue native USDT on the Kaia chain, providing users with stablecoin services.

The native token KAIA is used to pay transaction fees and incentivize network operation. Newly added KAIA is distributed to block proposers, stakers, the ecological fund, and the infrastructure fund at a fixed ratio. It supports on-chain governance, allowing adjustments to the inflation rate and fee model based on community resolutions.

Compared to other mainstream public chains, Kaia focuses on the Asian market, bringing a massive user base from Kakao and LINE into the Web3 ecosystem; it adopts a second-level finality consensus algorithm; and quickly integrates stablecoins and other key assets. These features give Kaia a unique advantage in promoting large-scale applications of blockchain.

2. Progress of Ecological Construction

2.1 Kaia Wave Plan and Mini Dapp Ecosystem

In August 2024, the Kaia mainnet will launch and the Kaia Wave program will be released, enabling developers to build Mini Dapps for LINE Messenger users through the NEXT WEB 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 launched the Mini Dapp Growth Competition in partnership with the LINE Dapp Portal, focusing on project MAU and on-chain token holder growth. Two rounds have been successfully held so far, continuously driving the acceleration of ecosystem growth. At the same time, the Dapp Portal has been launched as a directory and entry point for Dapps that can be accessed directly through LINE Messenger.

2.2 Kaia Stablecoin Plan

In May 2025, Kaia partnered with Tether to issue USDT natively on-chain. The first batch of USDT has been integrated into the Mini Dapp ecosystem within LINE Messenger, enabling the daily use of stablecoins. Multiple major exchanges have supported the deposit and withdrawal of USDT-KAIA network.

The Kaia team is promoting the issuance plan of the Korean won stablecoin, leveraging its experience in participating in the South Korean central bank's CBDC project to build a compliant and scalable digital currency infrastructure.

2.3 Ecological Investment Progress

In April 2025, the Kaia Foundation secured investment led by 1kx and Blockchain Capital, with participation from Galaxy Digital, IDG Capital, and others. This collaboration will aid in the market promotion of LINE NEXT and Mini Dapp services, strengthening Kaia's global influence.

2.4 Ecological Strategic Cooperation

Kaia continues to expand strategic cooperation in dimensions such as data visualization, secure custody, and asset circulation:

• Integrated with Dune, launching 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 investment of Mini Dapps
• Collaborating with Republic to provide advisory support for Mini Dapp developers
• Establish a strategic partnership with MEXC to launch the KAIA trading pair and perpetual contract
• Collaborate with Travala to integrate the KAIA payment system
• Integrate with Team Finance to support token locking and other functions.

2.5 Developer Support and Community Building

Kaia enhances the developer experience and stimulates community vitality through tools release, content incentives, and educational promotion.

• Conduct blockchain technology seminars at educational institutions in Singapore
• Join the Kaito Yapper Leaderboard and launch content creation rewards
• Launch DEX Scanner feature to assist on-chain trading
• Open Kaia Developer Bootcamp, providing systematic development support
• Launched Kaia Agent Kit, supporting the construction of AI-driven on-chain Agents.

3. Summary of Outstanding Projects in the Kaia Ecosystem

3.1 Excellent projects that have completed TGE

1. Elderglade: Web3 gaming ecosystem, over 11 million global players, monthly revenue exceeding 2 million USD.
2. Bombie: A zombie shooting game based on the LINE platform, with over 11 million registered players.
3. Frog Defense: A tower defense game that brings TikTok IP into the Web3 gaming space.
4. Lair: A new generation of liquid staking product built on KIP-163

3.2 Other promising leading projects

1. SavannaSurvival: A Web3 survival game that integrates automated combat, educational entertainment, and management simulation.
2. Boxing Star X: Web3 Boxing Game, brings an exciting experience to LINE Mini Dapp
3. DarkStar: A cross-platform space game that integrates Web2 and Web3
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 groundbreaking social game centered around DNAxCAT IP

These projects demonstrate the strong competitiveness of the Kaia ecosystem in core sectors such as gaming, setting a diversified benchmark for Web3 applications in more vertical fields. As the ecosystem continues to improve, Kaia is expected to further consolidate its leading position in the Web3 space and accelerate the promotion of Web3 applications to mainstream users.