Japanese social giant LINE sinks further into Web3, for the sake of money or revolution?

Recently, Line’s NFT-focused subsidiary, Line Next, announced that it had raised up to $140 million in investment from private equity fund operator Crescendo Equity Partners and its syndicate. This investment is not only large-scale in the blockchain and Web3 space in Asia, but also marks Line’s commitment to this emerging field and its determination to make a comprehensive layout.

The funds from this round of financing will be used by Line Next to promote the popularization of Web3 technology, which is regarded as an important direction for the future development of the Internet. In addition to expanding its global platform business, Line Next also plans to develop a number of new services. One of the most eye-catching is DOSI, a global NFT platform that is expected to launch in January next year. DOSI is not only an NFT trading platform, but also will integrate artificial intelligence technology to create a new social application experience. In addition, Line Next will also focus on the development of game products that integrate with Web3, which will undoubtedly bring new changes to the gaming industry.

In fact, Line began to lay out the Web3 field in 2018, showing its foresight and strategic layout in this field. With this series of initiatives by Line Next, Line’s influence in the Web3 space and its future development direction deserve further discussion.

Since the launch of the last bull run, LINE has continued to make efforts in the blockchain and NFT space

Since 2018, LINE has set out to build a solid foundation in the blockchain and digital currency space. The launch of the digital currency exchange BITBOX, the blockchain network LINK Chain, and the digital token LINK marks LINE’s initial exploration in digital asset management. In August 2020, this exploration went one step further with the launch of BITMAX Wallet, a digital asset management service designed to allow users to conveniently manage digital assets such as cryptocurrencies and NFTs issued on its private blockchain network, LINE Blockchain. Lee Yan-gyu, director of LINE’s blockchain financial platform, once foresaw a future in which cash would gradually be replaced by digital currencies.

In December 2021, LINE officially entered the NFT and Web3 space by establishing a dedicated subsidiary, LINE NEXT. This move not only represents a significant investment and strategic layout of emerging digital assets, but also reflects LINE’s deep insight into blockchain technology and the future of digital assets. LINE NEXT has established two key business centers in South Korea and the United States, which are responsible for the strategic planning of the global NFT platform and the commercial development of the NFT platform, respectively, which further confirms its strategic intent for global expansion.

In the NFT space, LINE has made significant achievements with its “LINE Blockchain NFT Market Beta” platform. Users in the Japanese market can buy NFTs using LINK, a cryptocurrency exchange owned by LINE, on BITMAX. The platform has successfully attracted blockchain partners from different fields, issuing more than 1.3 million NFTs on the LINE blockchain.

In December 2022, LINE launched the “Finschia” blockchain mainnet through its subsidiary, LINE Tech Plus. Finschia, as a “third-generation blockchain mainnet”, aims to simplify program management and smart contract support for developers. The launch of Finschia means that LINE has become a decentralized platform that provides social media and payment services, and has become a direct competitor to ETH in the field of dApp development. In addition, LINE plans to merge the “Daphne” mainnet with Finschia, unify all of its blockchain services, and launch a non-custodial wallet, DOSI Vault.

In 2023, LINE NEXT launched its first Web3 gaming platform, Game Dosi. Game Dosi is not just a gaming platform, but an innovative ecosystem with the slogan “Gamers First, Web3 Next” that aims to build a direct bridge of communication and trust between developers and players. By investing resources, identifying the needs of developers, and providing them with the best business model, Game Dosi is ready to launch five new games in the second half of this year, including Sweet Monster Guardians, VLO (Vestria the Last Order), KEROZ, Drawshop Kingdom Reverse, and Project GD, all games will be based on LINE’s newly launched third-generation blockchain mainnet “Finschia”.

Through these strategic initiatives, LINE has not only strengthened its position in the digital currency and blockchain technology space, but also demonstrated its capabilities and vision as an industry pioneer in the NFT and Web3 space.

With the advantage of traffic in the payment system, the mechanism and performance of LN token assets have attracted attention

In March 2022, LINE, a well-known Japanese social networking app, introduced an important innovation to its payment app, LINE Pay, as a payment option, using its blockchain’s native token, LINK, as a payment option, which is different from Chainlink’s token, which is simply called LN. This is not only an expansion of the application scope of LINK (LN), but also an improvement in its payment convenience. The introduction of LINK (LN) provides LINE users with a new, fee-free payment option, which reflects LINE’s recognition and promotion of the potential of digital currencies in daily transactions.

This trial strategy aligns with LINE’s 2021 blockchain plan and shows that the company is working to connect LINK (LN) with more payment merchants to expand its use cases in real-world applications. When users select LINK (LN) as their payment method in LINE Pay, their LINK assets on LINE BITMAX will be directly transferred to their LINE Pay account for instant payment. In addition, in order to encourage users to try LINK (LN) payment, LINE also provides incentives for users to receive a LINK (LN) rebate equivalent to 10% of the payment amount after payment.

LINK’s long-term goal is to contribute to the transition to a cashless society in Japan. LINE Pay is working hard to make LINK (LN) a common payment method in everyday life, which is reflected not only in its slogan “Designed for All”, but also in its efforts to make cryptocurrencies more accessible and easy to use.

Unlike other cryptocurrencies or digital tokens, LINK (LN) employs a unique way of issuance. Instead of choosing to issue LINK (LN) through an Initial Coin Offering (ICO), LINE has adopted a reward system. When users use certain services in the LINE ecosystem, they can receive LINK (LN) as a reward. These services include, but are not limited to, participation in decentralized applications (dApps) related to LINK (LN). Subsequently, users can use these LINKS (LNs) in upcoming dApp services, or in content, commerce, social, gaming, and trading services within the LINE ecosystem.

LINK (LN) was initially listed on LVC Corporation’s U.S. exchange Bitfront and later on Japan’s BitMax exchange. In the LINK (LN) ecosystem, there are two types of dApps: reward-based dApps and general-purpose dApps. Reward-based dApps are reviewed and allocated by the LINK Secretariat, and users can earn LINK when they use or contribute, while general-purpose dApps are decentralized applications that any developer can build freely.

Through this reward mechanism, the LINK (LN) ecosystem forms a co-creation relationship centered on users, developers, and creators. The entire ecosystem is expected to issue 1 billion LINK (LN) tokens, of which 800 million will be used for user rewards and the remaining 200 million will be managed by issuer LINE Tech Plus.

In the LINE blockchain network, users around the world, regardless of their initial capital or geographical location, have the opportunity to earn LINK (LN) through contributions on the Internet and use these tokens to access and use their favorite LINE services. This means that people across the globe have an equal opportunity to participate in and benefit from the LINK ecosystem.

The LINE blockchain has adopted a “zero reserve” strategy, introducing a predictable inflation mechanism to issue new tokens within the ecosystem in a transparent manner. For example, Finschia Chain’s inflation system uses 80% of inflation for direct demand and service growth, such as LINK (LN) staking and payment of rewards, and the remaining 20% as reserves for mainnet development and ecosystem activation. This inflation mechanism aims to increase the value of LINK (LN) through a reward system, promote service growth, and avoid excessive speculation.

Finschia official website

Finschia will set an inflation rate of up to 5% per year to guarantee the stability and sustainable development of the network. By implementing the gas fee of LINK (LN), Finschia aims to ensure the stable operation of the network and stimulate the demand for LINK. With the stabilization of the token economy, LINK’s inflation policy will focus more on network contributions, service contributions, and ecosystem development.

The introduction and promotion of LINK (LN) is not only a major innovation of the LINE payment system, but also an important milestone in the development of the entire digital currency and blockchain ecosystem. Through these initiatives, LINE demonstrates its deep understanding and long-term strategy in the field of digital currency, making LINK (LN) a bridge between everyday life and the world of digital currency.

The global financial community urgently needs more Web3 financial innovations, and the future of LINE is worth paying attention to

As LINE continues to penetrate into the blockchain and Web3 space, the successful integration and promotion of its native token LINK (LN) not only marks a big step forward in fintech, but also indicates a wide range of prospects for the application of digital currency in daily life.

This strategic move by LINE not only brings users a more convenient payment experience, but also sets a new benchmark for the digital currency market.

Looking ahead, LINE and its LINK (LN) token have great potential to drive the adoption and adoption of blockchain technology, which is expected to have a profound impact on the global digital economy.