Polygon and Hermez Merge Together as 'Polygon Hermez'
'Polygon'(formerly Matic), layer 2 platform is merging with 'Hermez' a ZK rollup based Ethereum scaling platform. Native tokens of both blockchain platforms(MATIC and HEZ) will also be merged. The merger will be worth $250 million.
Hermez will be completely absorbed into Polygon under the new name Polygon Hermez, with the entirety of Hermez technology and tokens, also Hermez employees(a team of 26) will be working for Polygon too. The deal is first of its kind, where one blockchain platform will undergo a full blown merger with another blockchain platform. Hermez token holders will be able to exchange HEZ tokens for MATIC at pegged ratio of 1-3.5. After some period(yet to be decided) HEZ tokens will cease to exist.
Zero knowledge rollups have gained traction in recent times, as they bundles up hundred of transactions off chain and create a cryptographic proof known as a SNARK which is later posted on layer 1(Ethereum). This bundling up off chain and posting in a single go, really helps to take the load off the congested main network. Hermez is one of the leading zk rollup and may be the only truly decentralized one, out there.
Mihailo Bjelic, Polygon Co-founder said:
We consider ZK cryptography the single most important strategic resource for blockchain scaling and infrastructure development, and we have a clear goal of becoming the leading force and contributor in this field for years to come.
Based on MATIC token price on August 4th(∼ 1$) at the time deal was struck, Polygon has committed a total of 250 million tokens from its treasury, which amounts to 12.5% of Polygon treasury and 2.5% of MATIC total token supply. MATIC has been enjoying a steady pump ever since, and is currently trading at $1.42.
Posted Using LeoFinance Beta