- Polygon blockchain merges with Hermez for $260M.
- Polygon merges with Hermez under the name Polygon Hermez.
- This merger is the first complete merger of one blockchain into another.
A layer 2 platform on the Ethereum blockchain, Polygon is merging with roll-up platform Hermez Network. The acquisition was worth roughly $260 million based on MATIC’s price on August 4, when the deal, struck.
The initial agreement between Polygon and Hermez, reached last week, with Hermez announcing that it is in discussion with a network for possible acquisition. When Hermez made the announcement, some of the features in not yet revealed.
Accordingly, Hermez will be absorbed into the Polygon ecosystem under the name Polygon Hermez, where it will become a part of Polygon’s line of products that includes Polygon SDK and Polygon Avail.
Moreover, Hermez projects entire employees, technology, and HEZ token will incorporated into the polygon’s platform. This merge of Polygon and Hermez is the first complete merger of one blockchain network into another.
Henceforth, as part of the announcement, HEZ holders can swap each of their HEZ for approximately four MATIC. Neither of them is yet to disclose the swapping contract where the swap will take place. Responding to whether HEZ token holders involved in the swap ratio decision, Polygon co-founder, Bjelic replied that the majority of them aware of and approved the decision.
Hermez is a ZK rollup, which means that it utilizes mathematical proof to verify and settle transactions. The Polygon-Hermez merger is part of Polygon’s new strategic focus on zero-knowledge (ZK) technology, also announced. However, Polygon has made a $1 billion commitment to developing ZK-based systems, forming partnerships, hiring employees, and acquiring ZK teams and projects like Hermez.