Kaia

Kaia's utility token, KAIA, plays a core role in powering the Kaia blockchain ecosystem. It is used for:

1. Transaction Fees and Payments: KAIA is used to pay transaction fees, staking fees, and network costs on the Kaia blockchain. By staking KAIA, users and validators contribute to network security and receive incentives for their participation.

2. Network Governance and Voting: As part of Kaia’s decentralised governance, KAIA holders can vote on proposals, changes, and upgrades within the network. Voting power is proportional to the amount of KAIA staked, although caps are in place to prevent centralisation of decision-making. On-chain governance also allows KAIA holders to directly influence network policies and protocols.

3. Incentives and Ecosystem Rewards: Kaia uses a multi-layered burn model and elastic token issuance to maintain value stability and incentivise network participants. The Kaia Ecosystem Fund (KEF) and Kaia Infrastructure Fund (KIF) support development projects, community incentives, and liquidity grants to strengthen the blockchain ecosystem. This mechanism is designed to support sustainable growth and an expanding user base through staking, development rewards, and delegated voting.

The transition to Kaia represents a coordinated rebranding and integration process driven by the communities of both Klaytn and Finschia. Governance votes in each ecosystem supported the conversion of KLAY and FNSA (the original utility tokens) into KAIA tokens at established exchange rates (KLAY:KAIA at 1:1, and FNSA:KAIA at 148.08:1). The merged platform retains compatibility with the original Klaytn network, so KLAY balances were automatically converted to KAIA, while FNSA holders can swap their tokens through the Kaia Portal, a dedicated migration interface that includes a burn-and-claim process for equivalency in KAIA tokens.

Technical and Functional Changes Post-Merger

With the rebranding, Kaia made several modifications in its technical and operational parameters:

• Supply Adjustments: Following the merger, Kaia’s circulating supply increased from approximately 3.8 billion to 5.8 billion KAIA tokens, while the total supply decreased, partly through token burning. Kaia’s block issuance rate was adjusted to 9.6 KAIA per block to support the network’s expansion.
• Mainnet Compatibility: Kaia continues to run on the Klaytn mainnet with no change in its chain ID, enabling smooth functionality for users of both networks. Klaytn wallets remain compatible with Kaia, though users of third-party wallets like MetaMask may need to update RPC details. Wallet users from the Finschia network will need to create a Kaia wallet.
• Infrastructure and Developer Support: The Kaia Foundation has launched new initiatives to assist DApp developers and infrastructure providers from both chains in migrating to Kaia. This includes brand guidelines, technical resources, and migration support to maintain ecosystem continuity. Kaia also provides liquidity grants, code audit funding, and other incentives to encourage DApp migration and new project development on the platform.

In terms of governance, Kaia retains the governance structure from Klaytn, allowing KAIA holders to participate in voting processes and manage network decisions. The Kaia Foundation, in tandem with the community, guides decisions on upgrades and protocol improvements while overseeing the Kaia Ecosystem and Infrastructure Funds to encourage developer engagement and user adoption.