Indian crypto startup Polygon purchases Hermez for $250 million

In the first merger of blockchain networks, Polygon said it is buying a zero-knowledge (ZK) crypto-based scaling project Hermez in a deal that will cost the firm $250 million. The firm will pay the amount in MATIC tokens.

All components of the Hermez like live solutions, technology, HEZ token and team will be integrated into the Polygon ecosystem.

The merged unit will work under the new name: Polygon Hermez. The company said that the project will become a part of the Polygon suite that already provides solutions like Polygon SDK, Polygon PoS, Polygon Avail, etc.

The company further said that the merger is their first huge strike into the ZK scaling sector after they commercially declared ZK-based solutions as their strategic target moving ahead. Further information on this strategic move is available in their ZK thesis.

After the merger, holders of HEX token will be able to exchange their tokens for Polygon’s local token (MATIC) through exchanging contracts that will be published soon. The exchange ratio is 3.5 MATIC into 1 HEZ. It is calculated on the basis of respective prices at 11 am CET on August 4, 2021.

Polygon said it is one of the first huge strikes in the ZK solutions. It is thoughtfully devoting important resources, including $1 billion to ZK solutions from their treasury.

MATIC will remain the native token of the Polygon ecosystem. It will adopt the role of HEZ in Polygon Hermez.

Author: Diksha Khiatani

A writer by day and a reader at night. Emerging from an Engineering background, Diksha is a travel freak and anxious to explore different cultures and religions. Inclined towards the off-beat places, she wishes to uncover the secrets on her Scooty (if possible). She always grabs some time to take a quick nap, listen to music, skating and eat a brownie.

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