Hermez is a Layer 2 service based upon zk-rollups. The acquisition will see the very first token merger in the history of crypto.
- Polygon is investing $250 million to get all HEZ tokens and rebrand the Hermez Layer 2 to Polygon Hermez.
- Polygon Hermez will be a real Layer 2 Ethereum service, with low costs and low latency.
- As part of the offer, HEZ holders will have the ability to exchange their HEZ tokens with MATIC tokens through a migration agreement.
Polygon is getting Hermez Network in the very first merger and acquisition offer including 2 tasks with tokens.
Hermez To End Up Being Polygon Hermez
Previously called Matic network, Polygon has actually just recently gotten Hermez Network, a ZK-Rollups-based Ethereum Layer 2 scaling option. The acquisition includes the very first token merger in crypto history, as Hermez’s HEZ will be incorporated into Polygon’s MATIC token.
Polygon is an Ethereum suitable blockchain whose function has actually been to alleviate a few of the traffic from Ethereum while lowering charges considerably. This style choice has actually brought a great deal of attention to Polygon, with numerous DeFi jobs moving to Polygon. Yield farming, typically viewed as too pricey on Ethereum due to high gas costs, has actually likewise seen a renaissance on the scaling service.
Hermez’s Layer 2 service is based upon zero-knowledge rollups, frequently abbreviated to ZK-Rollups. This innovation enables it to process deals quicker and for practically no charges while still leveraging the primary Ethereum chain’s security. The merger will see the task called “Polygon Hermez,” and Hermez’s 26 staff members sign up with Polygon.
This is a historical occasion for crypto as never ever prior to had actually a job obtained another task with a token and combined both. From now on, MATIC will be utilized to spend for deals on Hermez. HEZ holders will have the ability to exchange their tokens at a 3.5 MATIC/1HEZ ratio.
Around 250 million MATIC tokens will compensate HEZ holders, representing around 12.5%of Polygon’s treasury. With Hermez, Polygon obtains what is most traditionally considered a Layer 2 service, one developed on top of Ethereum instead of in parallel like the Polygon Devote Chain, a proof-of-stake blockchain.
So here is the play book
1. Meme yourself as L2
2. Understand you can’t do L2
3. Meme more for mcap
4. Purchase an L2 https://t.co/PerVSmCign
— Andre Cronje (@AndreCronjeTech) August 13, 2021
Critics have actually kept in mind that the acquisition can appear like Polygon purchasing themselves a real Layer 2 service instead of constructing it themselves. On the other hand, Polygon has actually revealed it is doubling down on its ZK-centric method by dedicating an additional $1 billion from its treasury to establishing the innovation.
Disclaimer: The author held ETH and numerous other cryptocurrencies at the time of composing.
This news was given you by ANKR, our chosen DeFi Partner.
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