Kaia Blockchain White Paper v1.2
Important Notice
Project Kaia1 Digital Tokens (hereinafter referred to as “KAIA” with the ticker symbol KAIA) are not intended to constitute a regulated product such as securities, fiat tokens or e-money, accepted virtual assets or specified investments each as defined under the Financial Services and Markets Regulations 2015 of the Abu Dhabi Global Market (the “FSMR”), or its equivalent or any other regulated products in any jurisdiction.
Please note that you may not be able to recover any monies paid for KAIA in the event that the KAIA Token Economy fails to materialize or where the vision or objects of the Foundation fails.
This Whitepaper is meant to provide more information on the KAIA Token Economy and functions of KAIA, and does not constitute a prospectus or offer document of any sort.
This Whitepaper does not constitute or form part of any opinion or any advice to sell, or any recommendation or solicitation of any offer to purchase KAIA nor shall it or any part of it or the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision.
No person is bound to enter into any contract or binding legal commitment in relation to the sale and purchase of KAIA and no digital tokens or other form of payment is to be accepted on the basis of this Whitepaper.
Any agreement between the Foundation and you as a recipient or purchaser, and in relation to any airdrop, sale or purchase of KAIA is to be governed by a separate document setting out the terms and conditions (the “T&Cs”) of such agreement. In the event of any inconsistencies between the T&Cs and this Whitepaper, the T&Cs shall prevail. Your eligibility to receive, purchase or sell KAIA on any digital token trading platform or exchange is subject to your compliance with their respective terms and conditions.
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Introduction
Our Origin
The Finschia blockchain, based on the LINE Blockchain initiated by the global messaging company LINE in 2018, and the Klaytn blockchain, established in 2019 on the foundation of Kakao, South Korea's leading software company, have merged their blockchain and ecosystems under the shared goal of achieving mass adoption of blockchain technology to create the Kaia Blockchain.
Kaia Blockchain is a Layer 1 blockchain based on EVM (Ethereum Virtual Machine) and has been designed with scalability, convenience, and reliability as top priorities. Kaia Blockchain focuses on transformative changes that will empower not only technology and business but also individuals in the Web 3.0 era. Kaia Foundation2 and ecosystem participants aim for easier accessibility of blockchain technology and let more people participate in the Web 3.0 revolution. Kaia Blockchain will settle as a trusted stratum that connects people from different backgrounds all over the world.
To build the infrastructure for the collaborative Web 3.0 playground, Kaia Blockchain will combine powerful integrated community and infrastructure technologies to discover new opportunities and accelerate innovation.
Mission
Our goal is to build a fairer and more open future by ensuring people greater economic opportunities and the right to participate through blockchain.
Vision
The core vision of Kaia Blockchain is to integrate a broad user base, vast on-chain assets, and technology to help builders promptly implement and expand their ideas with successful results. As a platform, Kaia Blockchain provides the tools and environment required by the builders, providing them with the opportunity to introduce creative solutions to a wider public. They plan to create new value by leveraging on-chain assets and pursuing innovation that goes beyond technological limitations. The continued growth and success of the builder community is one of the core goals of Kaia Blockchain. For builders to turn their aspirations into reality, we will be helping builders turn their visions into reality, from the ideation stage through to implementation, market entry, and growth.
Value Proposition
Kaia Blockchain aims to create Asia's #1 blockchain through the integration of the two mainnets and lead the adoption of Web3, which was the common goal of the two blockchains. This vision can be achieved by helping builders create ideas, grow, and successfully build projects through a wide user base, abundant on-chain assets, and technology leadership as below. Kaia Blockchain provides a robust infrastructure for Web3 projects of all sizes, creating an ideal environment for builders looking to bring innovative ideas to life.
Wide User Base
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Web2 User Accessibility: One of the biggest problems facing Web3 projects is attracting Web2 users. Kaia Blockchain provides easy access to existing Web2 users through a messenger-integrated wallet through collaboration with Kakao with 50 million Korean users and LINE with 200 million users in Japan, Taiwan, Indonesia, and Thailand.
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Web3 User Accessibility: In addition to Web2 users, it helps attract Web3 users quickly and easily to the project by providing more than 1.2 million wallet active addresses and an interface connecting the users and the project.
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Community Building Support: It helps users gather and build projects through joint marketing with Kaia Foundation and provides an environment with easy access and usage for users from various chains.
Abundant Liquidity Support
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Real World Asset (RWA) Linkage: Real world assets such as gold, ships, and real estate already exist on Kaia Blockchain. Beyond this, real world assets such as various fiat-backed stablecoins and bonds will be on-chained, allowing developers to utilize a wider range of assets.
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Large-Scale Ecosystem Fund (Kaia Ecosystem Fund): A large-scale ecosystem fund can be created based on KAIA and support various sectors requiring liquidity such as Defi and Gamefi.
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Chain Native Yield: Built-in MEV (Maximal Extractable Value) extraction allows KAIA Stakers to automatically earn MEV profits on the chain. This results in an increase in the chain liquidity and simultaneously provides a method for burning tokens.
Top-Level Core Technology and Development Convenience
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Top-Level Transaction Finality: Provides higher TPS and decentralization while maintaining the 1-second transaction finality.
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Ethereum Compatibility: EVM-based dApps can be onboarded without any modifications with the provision of 100% Ethereum compatibility.
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Convenient Account Model: The account model of Kaia Blockchain enables the assigning of various keys to accounts, which strengthens account security and improves user experience.
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Permissionless and Decentralized Structure: Kaia Blockchain is converting into a permissionless validator structure while also increasing the network’s decentralization.
Token Economy
Introduction
Public blockchain platforms are maintained through a token model, which greatly influences the growth direction of the platform. Since blockchains generally do not have a central governing body, it is crucial to motivate the individuals who maintain and develop the blockchain to ensure its continued existence. However, it is unrealistic to expect participants to engage in blockchain security solely for altruistic motivations without seeking any financial gain. Therefore, an incentive system is necessary to motivate blockchain ecosystem participants to maintain and develop the network.
In blockchains, governance structures drive change. Blockchain platforms must change to keep pace with external developments as available technologies continue to expand and market needs change. Unlike general products developed and maintained by a single company or a central governing body, a public blockchain is not suitable for a single entity to make and implement unilateral decisions. For example, even if the main developers decide on a software update, the miners may not apply it. Therefore, a governance process is needed to collect the opinions of all participants in the ecosystem and make decisions based on the collected opinions in order for the blockchain network to implement timely changes. A stable governance structure must exist for the blockchain to adjust appropriately in response to external changes.
This chapter explains the token model and governance system of Kaia Blockchain. Kaia Blockchain aims to help builders quickly implement, scale, and achieve successful results based on its large user base, vast on-chain assets, and technology. This document will go over the design principles used to create the current features of Kaia Blockchain and how these features may change. The information provided in this document will be verified through relevant data, and part of this content may be subject to change after sufficient verification and review.
Design Principles
Designing the token economy and governance structure of a blockchain platform is complex. First, token economy and governance structures are tested under controlled conditions that do not fully reflect reality. Therefore, it cannot be prepared for all variables. It is also worth noting that the blockchain industry is still in its infancy stage and we have yet to see a successful system that operates over the long term. Kaia Blockchain considered these environmental factors and defined internal principles that are not influenced by external influences rather than maintaining a single specific model. The detailed token economy and governance structure may flexibly evolve in line with the market conditions and regulations. However, the design principles will remain unchanged as a core value shared by all ecosystem participants.
The core design principles of the token design of Kaia Blockchain are:
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Rewarding Ecosystem Contributors: For a blockchain platform to be sustainable and provide great value to users, simply maintaining the network is not enough; the growth of the platform ecosystem is also very important. Therefore, Kaia Blockchain will identify the entities contributing to this growth and provide rewards and support commensurate with the contribution of each participant. This will result in not only contributors to block creation and verification but also service providers who have contributed to the growth of the platform ecosystem receiving reasonable compensation in proportion to their contribution, acting as an attractive incentive for potential external contributors.
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Elastic Token Economy: The token economy has numerous active participants with different interests and is greatly affected by various internal and external changes. Therefore, the token economy will be flexible to external variables based on consistent core principles rather than maintaining a single model. Based on these core principles, the token economy of Kaia Blockchain can respond quickly and flexibly to external changes. At the same time, it can support the ecosystem participants to operate stably and align the direction to promote overall growth.
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Sustainable Growth: Blockchain platforms must maintain continuous growth. In other words, it must retain the existing and new participants within the ecosystem based on a reasonable incentive model and a system that can flexibly respond to the needs and impacts of rapidly changing markets within and outside the ecosystem. In return, Kaia Blockchain will be able to achieve balanced and stable growth based solely on the contributions of ecosystem participants without any artificial value expansion.
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Simplicity: Kaia Blockchain will be explainable simply and clearly. This will allow for quick optimizations and fixes in the future. Its simplicity will allow everyone involved to easily understand the functionality.
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Experiment and Optimize with Data: How high should inflation be? What types of rewards should be given for what actions? These questions are difficult to answer without testing and verification. Kaia Blockchain will transparently analyze data obtained and managed on the blockchain, optimize the platform by testing various hypotheses, and transparently share the results through technical reports.
Kaia Blockchain Tokenomics
KAIA
KAIA is the platform-native cryptocurrency of the Kaia Blockchain, used to enhance the security of the Kaia Blockchain through staking or to pay transaction fees. Transaction fees are incurred when deploying or executing smart contracts, or when transferring tokens.
KAIA is an essential element and fuel for operating the Kaia Blockchain platform. The users’ KAIA is paid to the validators to execute tasks requested by clients of the platform. In other words, KAIA is an incentive that will ensure developers write high-quality application codes (wasteful codes cost more) and the network remains healthy (validators are compensated for the contributed resources).