BANGALORE, INDIA / ACCESSWIRE / August 14, 2021 / Ethereum scaling project Polygon (formerly Matic Network) has acquired Hermez Network – a ZK-Rollups-based Ethereum scaling solution – for $250 million. The two projects are also merging their native tokens – MATIC and HEZ – in the first-ever such deal in the crypto space.
Polygon is proud to announce that Hermez, one of the most prominent zero knowledge (ZK) cryptography based scaling projects and teams, will be joining Polygon. Starting today, the process of merging Hermez into the Polygon ecosystem will be initiated, where it will be operating under the new name: Polygon Hermez. Polygon Hermez will become a part of the growing Polygon suite that already offers solutions such as Polygon PoS, Polygon SDK, Polygon Avail etc. The maximum amount that will be committed for this merger from the Polygon treasury is 250M $MATIC tokens, or roughly $250M based on the price at the time of reaching the agreement (August 4, 2021).
This merger is the first big foray into the ZK scaling field, after ZK based solutions were publicly announced as Hermez’s strategic focus moving forward.
This merger will be the first full-blown merger of one blockchain network into another. M&As in the traditional tech world are an everyday thing. In blockchains however, they are a new and very interesting concept. There has been a lot of thinking about how an actual merger between two networks might look like, but very few actual attempts to do one. We believe this is in a way a historical moment, since this will be (to the best of our knowledge) the first full-blown merger of two blockchain networks. All components of the Hermez project: technology, live solutions, team, and HEZ token will be integrated into the Polygon ecosystem. HEZ token holders will be able to swap their tokens for Polygon’s native token (MATIC) via the swapping contract that will be published soon. The swap ratio is 3.5 MATIC : 1 HEZ, and is calculated based on the respective prices at 11AM CET August 4, 2021, as previously publicly announced by the Hermez team. MATIC will remain the only token of the Polygon ecosystem and it will take the role of HEZ in Polygon Hermez moving forward: it will provide security, rewards and potentially some additional utilities. HEZ token will cease to exist after a specific date yet to be defined. All other details of the merger will be announced and explained in the days and weeks to come. The dynamics of this merger will open new frontiers in terms of blockchain governance, token design, utility, value accrual etc.
“We thank the whole Polygon and Ethereum community for all the support so far and we invite you to stay with us moving forward; this journey is about to get even more exciting”, says Sandeep Nailwal, co-founder at Polygon.
Hermez is a decentralised zero-knowledge rollup that greatly scales and reduces the cost of payments and transfers on the Ethereum network with a focus on supporting community-driven projects through its original Proof-of-Donation mechanism. Hermez aims to create an inclusive and accessible blockchain payment network developed by the team behind iden3, an open-source protocol for self-sovereign identities on public blockchains. For more information on Hermez, visit: https://hermez.io/.
Polygon is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building and connecting Secured Chains like Plasma, Optimistic Rollups, zkRollups, Validium, etc, and Standalone Chains like Polygon POS, designed for flexibility and independence. Polygon’s scaling solutions have seen widespread adoption with 500+ Dapps, ~567M+ txns, and ~6M+ daily txns.
If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for your Dapp, get started here.
Aleena is an enthusiast cryptocurrency blogger and investor. She loves writing about cryptocurrency topics, particularly in regards to Bitcoin, altcoins, crypto trading and crypto mining.