Polygon Acquires Layer 2 Blockchain Hermez for $250 Million

Key Takeaways

• Polygon is spending $250 million to accumulate all HEZ tokens and rebrand the Hermez Layer 2 to Polygon Hermez.
• Polygon Hermez might be a real Layer 2 Ethereum answer, with low charges and low latency.
• As a part of the deal, HEZ holders will be capable to trade their HEZ tokens with MATIC tokens via a migration contract.

Share this text

Polygon is buying Hermez Community within the first merger and acquisition deal involving two initiatives with tokens.

Hermez To Change into Polygon Hermez

Previously often known as Matic community, Polygon has lately acquired Hermez Community, a ZK-Rollups-based Ethereum Layer 2 scaling answer. The acquisition options the primary token merger in crypto historical past, as Hermez’s HEZ might be built-in into Polygon’s MATIC token.

Polygon is an Ethereum suitable blockchain whose goal has been to alleviate a few of the site visitors from Ethereum whereas lowering charges drastically. This design determination has introduced numerous consideration to Polygon, with many DeFi initiatives migrating to Polygon. Yield farming, usually seen as too costly on Ethereum resulting from excessive gasoline charges, has additionally seen a renaissance on the scaling answer.

Hermez’s Layer 2 answer relies on zero-knowledge rollups, usually abbreviated to ZK-Rollups. This expertise permits it to course of transactions sooner and for nearly no charges whereas nonetheless leveraging the principle Ethereum chain’s safety. The merger will see the mission named “Polygon Hermez,” and Hermez’s 26 staff be a part of Polygon.

It is a historic occasion for crypto as by no means earlier than had a mission acquired one other mission with a token and merged each. Any longer, MATIC might be used to pay for transactions on Hermez. HEZ holders will be capable to trade their tokens at a 3.5MATIC/1HEZ ratio.

Round 250 million MATIC tokens will compensate HEZ holders, representing round 12.5% of Polygon’s treasury. With Hermez, Polygon acquires what’s most conventionally considered a Layer 2 answer, one constructed on high of Ethereum reasonably than in parallel just like the Polygon Commit Chain, a proof-of-stake blockchain.

So right here is the play e book

1. Meme your self as L2
2. Understand you’ll be able to’t do L2
3. Meme extra for mcap
4. Purchase an L2 https://t.co/PerVSmCign

— Andre Cronje (@AndreCronjeTech) August 13, 2021

Critics have famous that the acquisition can look like Polygon shopping for themselves a real Layer 2 answer reasonably than constructing it themselves. Alternatively, Polygon has introduced it’s doubling down on its ZK-centric technique by committing an extra $1 billion from its treasury to growing the expertise.

Disclaimer: The creator held ETH and several other different cryptocurrencies on the time of writing.

This information was delivered to you by ANKR, our most popular DeFi Companion.

Share this text

The knowledge on or accessed via this web site is obtained from impartial sources we consider to be correct and dependable, however Decentral Media, Inc. makes no illustration or guarantee as to the timeliness, completeness, or accuracy of any data on or accessed via this web site. Decentral Media, Inc. is just not an funding advisor. We don’t give customized funding recommendation or different monetary recommendation. The knowledge on this web site is topic to vary with out discover. Some or the entire data on this web site could turn out to be outdated, or it could be or turn out to be incomplete or inaccurate. We could, however usually are not obligated to, replace any outdated, incomplete, or inaccurate data.

You need to by no means make an funding determination on an ICO, IEO, or different funding based mostly on the knowledge on this web site, and it’s best to by no means interpret or in any other case depend on any of the knowledge on this web site as funding recommendation. We strongly suggest that you simply seek the advice of a licensed funding advisor or different certified monetary skilled in case you are searching for funding recommendation on an ICO, IEO, or different funding. We don’t settle for compensation in any kind for analyzing or reporting on any ICO, IEO, cryptocurrency, forex, tokenized gross sales, securities, or commodities.

See full phrases and situations.

Ethereum Layer 2 Solution Hermez Network Launches on Mainnet

Ethereum’s Layer 2 welcomes a new arrival: Hermez Network.  Hermez Network Launches  Hermez Network has gone live on Ethereum mainnet.  The Layer 2 project shared news of the update in…

Yield Farmers Are Migrating to Polygon

Polygon offers a similar yield farming experience to Ethereum mainnet at a fraction of the cost. Key metrics show that DeFi power users are starting to migrate to the network….

How to Trade Using the Inverse Head and Shoulders Pattern

In stock or cryptocurrency trading, you may have heard of the term “inverse head and shoulders.” Also known as the “head and shoulders bottom” formation, the inverse head and shoulders chart pattern can…

Polygon Rallies as Whales Go Into Buying Spree

Polygon’s native token MATIC appears to have entered a new uptrend fueled by whales that have been accumulating tokens at a discount. MATIC Targets Higher Highs  Polygon’s MATIC token is…