Polygon, formerly known as Matic Network, has announced its acquisition of Hermez Network, a ZK-Rollups-based Ethereum scaling solution, for US$250 million.
MATIC + HEZ
The new company’s name will be called Polygon Hermez, and Hermez’s 26 employees will join Polygon’s staff of 80. Polygon co-founder Mihailo Bjelic:
This (to the best of our knowledge) is the first-ever full-blown merger of blockchain networks, where one network will completely absorb the other, including its token.
Based on token prices on August 4 at 11:00 CET, the swap ratio of the two tokens will be 1 HEZ to 3.5 MATIC. Mr. Bjelic said that Hermez’s largest token holders were aware of the ratio and everyone agreed. Polygon has further committed US$1 billion from its treasury to ZK-based solutions.