Polygon (formerly Matic network) has acquired Hermez Network for 250 million dollars with a full-blown merger of the two blockhains, which is the first in blockchain history. This adds Hermez to one of its ethereum solutions. This came about in an initial agreement that was met on August 4, 2021. According to the agreement, 1 Hermez token will be swapped for 3.5 matic in the merger.

Polygon committed a total of 250 million tokens to the merger which is to be its 4th acquisition. hermez will now be named polygon Hermez.

According to polygon, the acquisition will also involve merging the two tokens together, such that the two platforms will use only one native token.


Keep and NuCypher, two Ethereum projects, announced earlier this year that their protocols would be merged into a decentralized autonomous organization (DAO) called “Keanu,” but that their brands and businesses would remain independent. Yearn Finance also announces acquisitions and agreements on a regular basis, but it’s unclear what’s going on behind the scenes.

Polygon’s takeover of Hermez’s crew and protocol is a very different story.
Hermez is a zero-knowledge (ZK) rollup, which means it verifies and settles transactions using mathematical proofs. Rollups have emerged as the preferred scaling strategy as Ethereum battles with transaction congestion.
And Hermes, the only decentralized rollup, is a popular choice among users.

Polygon’s new strategic focus on ZK technology, which was also announced on Friday, includes the Polygon-Hermez merger.

Some of the proposed services of the polygon

Available data services

Distinctive solutions and services

Decentralized security services

Messaging protocol and modules within chains

Modules for specific applications.

HOW POLYGON SUCCESSFULLY TURNED ETHEREUM INTO INTERNET OF BLOCKCHAINS

Maximum Benefits From the Ethereum Network Products

Various systems like the polkadot, Avalanche etc are built on the ethereum blockchain, competing for existence on the ecosystem as they are built from the scratch while polygon is an essential part of the ethereum community.

Absolutely Safe

The POLYGON functions on the security of the ethereum blockchain which is relatively safe, tested and trusted globally as the highest security hub.

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.

About Hermez

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.

Inverebly nothing really changed about the POLYGON asides its nomenclature and the fact that is has put in new structures to serve users in safer, faster and more advanced manner than when it was MATIC.

For the sake of clarity let’s take a peek at what MATIC network was and what POLYGON is.

MATIC NETWORK

With the Ethereum Network being one of the major high ranking and favourable technical project of global relevance, it is important to by all means work towards the creation of other operations and systems that will improve the ethereum structure to help it function better.

August at 11:00 CEST according to the USD value of both tokens on Bitfinex. The peg between HEZ and MATIC will be as follows: 1 HEZ = 3.5 MATIC.

There are incentives for arbitrageurs to keep the peg, so it shouldn’t make any difference for token holders.

Holders can trade their tokens in several exchanges already if they wish to do so.

In an effort to be as transparent as possible and avoid speculation caused by potential information leaks, the peg (in the case a final agreement is reached), has already been established according to Bitfinex market prices listed at 11:00 CET August 4, 2021.

— Polygon Hermez (@PolygonHermez) August 4, 2021

Once the smart contract is released, HEZ holders on centralized exchanges should send their HEZ to a Metamask wallet and then to the token swap smart contract, obtaining MATIC in return.

This function will be now performed using Polygon’s native MATIC token.

Other community members have raised concerns about decentralization, as they were attracted originally to the Hermez project due to its ethos of decentralization.

Our name has now changed to Polygon Hermez, but our ethos remains the same: we’re building a decentralized zkRollup to scale Ethereum. With Polygon’s resources and expertise behind the project, we’ll be able to achieve our goals much sooner than before.

Explaining the Polygon Hermez Token Acquisition

Polygon has allocated 250 million MATIC tokens to develop Polygon Hermez.

Polygon Hermez will become one of polygon’s solutions and place them one step closer to achieving full-blown scalability and security on the ethereum blockchain.

Polygon, which already has more than 350 projects in its ecosystem, is dedicated to acquiring large-scale ethereum solutions, as it has previously acquired 3 projects including Polygon Commit chain (a proof-of-stake blockchain), polygon SDK, and Polygon Avail, with more acquisitions to come in the future as it dedicates 1 billion dollars in acquiring ZK-based projects.

Polygon’s aim is to make the platform the innovative hub of ethereum and to put the power of innovation in the hands of the developers and the users.

Hermez is a ZK-rollups protocol that uses zero-knowledge proof to verify the correctness of a large batch of off-chain transactions before transferring them to the ethereum blockchain.

Nothing changes here: we are a Layer 2 solution that inherits its security from Ethereum Layer 1.

Regarding token economics, the HEZ token will cease to be the utility token of the zkRollup after a specific date which is yet to be defined. MATIC will become the utility token of Polygon Hermez.

Some users have expressed their concerns about the financial implications of the merger.
While we acknowledge these concerns, we want to remind our community that the HEZ token has always been a utility token, not a speculative or governance token. Its function, as depicted in the original whitepaper, was exclusively for coordinators to bid for winning the right to process transactions.

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.

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.

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