The Ethereum scaling project, Polygon, has announced that it will merge with Hermez, a zero-knowledge (ZK) cryptography-based scaling project, in a $250 million deal. A zero-knowledge technology enables verifying data such as transactions and personal information or identification without handing over control of the information. The Indian crypto startup Polygon will now be operating under the new name, Polygon Hermez. All components of the Hermez project will be integrated into the Polygon ecosystem.
“This will be the first full-blown merger of two blockchain networks.”
The Indian crypto startup revealed in the official statement, “The maximum amount that will be committed for this merger from the Polygon treasury is 250 million Matic tokens, or roughly $250 million based on the price at the time of reaching the agreement.” “This merger is our first big foray into the ZK scaling field after we publicly announced ZK-based solutions as our strategic focus moving forward,” the firm added. The firm also revealed that only a few actual attempts have been made to merge two networks. “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.”
HEZ token holders will be able to swap their tokens for Polygon’s native token.
Polygon also announced that HEZ token holders would be able to swap their tokens for Polygon’s native token Matic via the swapping contract that companies will announce soon. The swap ratio has been set at 3.5 Matic:1 HEZ. Also, the HEZ token will cease to exist after a specific date, which is yet to be announced. Polygon’s native token Matic is among the top 20 cryptocurrencies with a market capitalization of over $9.5 billion.