Kaia Blockchain Ecosystem Development Report: Mini Dapp Driven On-Chain Rise Paradigm

1. Overview of the Kaia Blockchain Ecosystem

1.1 Background and Development History

Kaia is a new ecosystem formed by the merger of the blockchain project Klaytn, led by the two tech giants Kakao and LINE, and Finschia. Klaytn was launched by Kakao Group's Ground X company in June 2019 and attracted notable Korean companies such as LG Electronics and Celltrion to participate in its governance in the early stages. Finschia originated from the LINK blockchain launched by LINE in August 2018, and was later renamed and established an independent foundation for operation in 2022.

In January 2024, Klaytn and Finschia proposed a merger to the community, aiming to create "the largest Web3 network in Asia." After the proposal was approved, the two chains officially merged in August 2024, launching the new Kaia mainnet. The merged Kaia chain is managed by the newly established Kaia DLT Foundation, integrating the technical and governance advantages of Klaytn and Finschia.

Kaia is positioned as 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 decentralized applications to run directly on these mainstream social platforms. As a public chain based on BFT consensus, Kaia has been optimized to achieve enterprise-level reliability and performance, providing underlying support for the next generation of Web3 applications.

1.2 Main Technical Features

Kaia adopts a layered node architecture, including core units, consensus nodes, proxy nodes, and endpoint nodes. The network uses an improved Istanbul BFT consensus algorithm to achieve block generation in 1 second and instant finality, with currently over 50 consensus nodes and a theoretical peak of about 4000 TPS. Committee members are elected through a verifiable random function, effectively controlling communication overhead during scalability.

Kaia is EVM compatible and supports Ethereum smart contracts; it also integrates with various cross-chain bridges ( such as StarGate, Orbiter, etc. ) to achieve asset interoperability with Ethereum and other Blockchains. In addition, Kaia is deeply integrated with the LINE ecosystem, supporting developers to directly deploy native Dapps within the chat application through SDK/API.

In terms of the token economic model, Kaia adopts a sustainable design: the native token KAIA is used to pay Gas fees and incentivize network operation. Each new KAIA added to the Block is distributed at a fixed ratio: 50% as rewards, and 50% goes into the ecosystem fund and 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, alongside the launch of the Kaia mainnet, the Kaia Wave plan was announced. This plan was jointly created by Kaia and LINE NEXT, enabling developers to build Mini Dapps for LINE users through the NEXT WEB SDK, accelerating the connection between on-chain projects and users. The first batch of Mini Dapp projects will be launched within LINE in Q1 2025.

To further stimulate ecological vitality, Kaia has jointly launched the Mini Dapp Growth Competition with LINE Dapp Portal, focusing on project MAU and on-chain token holder growth. Two phases have been successfully held so far, continuously driving the accelerated development of the Mini Dapp ecosystem.

Also launched is the Dapp Portal, which serves as a directory and entry point for Dapps that can be accessed directly through LINE. It allows users to discover, download, and use various Kaia ecosystem Dapps without leaving LINE, enjoying a one-stop Web3 service experience.

2.2 Kaia Stablecoin Plan

In May 2025, Kaia partnered with Tether to natively issue USDT on the Kaia Blockchain. These USDT are deployed in the form of native contracts and are directly issued and hosted by Tether, ensuring a 1:1 dollar reserve. The first batch of native USDT has been integrated into the LINE Mini Dapp ecosystem for daily use of the stablecoin.

Many mainstream exchanges such as Bitget, Bitfinex, Bybit, and Gate have supported the deposit and withdrawal services of the USDT-KAIA network, providing users with diversified asset channels. In the future, Kaia plans to launch a Korean won stablecoin to further enrich the ecological financial infrastructure.

2.3 Ecological Investment and Strategic Cooperation

In April 2025, the Kaia Foundation secured investment led by 1kx and Blockchain Capital, with participation from renowned institutions such as Galaxy Digital and IDG Capital. These investments will provide support in market development, compliance frameworks, and ecosystem collaboration.

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

• Collaborate with Dune to achieve on-chain data visualization
• Collaborating with Fireblocks to provide secure asset custody for ecosystem partners.
• Collaborating with KuCoin to support the priority listing and investment of Mini Dapp
• Collaborate with Republic to provide Token economic advisory support for developers.
• Collaborating with MEXC to launch the KAIA trading pair and derivatives.
• Collaborating with Travala to integrate the KAIA payment system
• Collaborate with Team Finance to provide functions such as token locking.

2.4 Developer Support and Community Building

Kaia supports developers and invigorates the community in various ways:

• Conduct blockchain training at educational institutions in Singapore
• Launch the Yapper Leaderboard content creation reward program
• Released DEX Scanner feature, facilitating on-chain trading.
• Open Kaia Developer Bootcamp Pre-registration
• Launched the Kaia Agent Kit development suite, supporting AI + on-chain collaboration

3. Excellent Project Cases in the Kaia Ecosystem

3.1 Excellent projects that have completed TGE

1. Elderglade: Web3 gaming ecosystem, over 11 million players across all platforms, monthly revenue exceeding 2 million USD.

2. Bombie: A zombie shooting game based on LINE, with over 11 million registered players and nearly 70,000 daily active users.

3. Frog Defense: Introducing the "Frog Pikeman" IP into the Web3 gaming space Mini Dapp.

4. Lair: A liquidity staking product based on the KIP-163 standard.

3.2 Other promising leading projects

1. SavannaSurvival: A Web3 survival game that integrates automatic 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 game based on the "Captain Tsubasa" IP.

5. Slime Miner: Web3 idle RPG game.

6. Fate War: Kaia's first "play-to-earn" RPG game.

7. Kyuzo's Friends: A social game based on DNAxCAT IP.

These projects demonstrate the competitiveness of the Kaia ecosystem in core areas such as gaming, setting a diversified benchmark for the popularization of Web3 applications. With more innovative projects emerging and infrastructure improving, Kaia is expected to further consolidate its leading position in the Web3 field, promoting the transition of applications from early adopters to mainstream users.