In Brief:
- “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,” said Polygon.
- The swap ratio is 3.5 MATIC: 1 HEZ and is calculated based on the respective prices at 11 AM CET on August 4, 2021
Indian blockchain scalability platform, Polygon (known as MATIC) said that it will merge with Hermez, a zero-knowledge (ZK) cryptography-based scaling project, in a $250 million deal. The two projects are also merging their native tokens MATIC and HEZ’s first-ever deal in the crypto space.
According to the announcement process of merging Hermez into the Polygon, the ecosystem will be operating under the name: Polygon Hermez. It will also become a part of growing Polygon solutions like 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.” Polygon said in a blog.
For many months Polygon worked on developing ZK proofs. The company has committed $1B, a significant portion of its treasury, to ZK project-related efforts.
The funds will be used for:
- Acquiring world-class ZK projects and teams
- Building ZK based solutions
- Hiring premium talent
- Adoption of ZK solutions
- Research Funding etc.
“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,” said Polygon.
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All components of Hermez project: technology, live solution, its team of 26, and HEZ token linked into the Polygon ecosystem. HEZ token holders will be able to swap their Polygon native tokens via a swapping contract published soon. The swap ratio is 3.5 MATIC: 1 HEZ and is calculated based on respective prices at 11AM CET on August 4, 2021.
Polygon said it is one of its first significant forays in the ZK solutions.
