Hermez Network Reportedly Acquired by Polygon in a $250 Million Deal

As per the latest reports, Polygon has reportedly acquired Hermez Network, which is a ZK-rollup project. The reports confirm that the layer-two protocol has acquired Hermez Network forming a deal worth $250 million. The sources have confirmed that the deal between the companies has been fulfilled using the MATIC tokens, native currency to the Polygon network.

With the latest deal, Hermez Network would now become part of the Polygon ecosystem where the users would be able to benefit from it.

The announcement around the acquisition of the Hermez Network was made by Polygon on Friday, August 13, 2021. According to the agreement between the two firms, the Hermez Network would become part of the suite of solutions that are provided by the Polygon Network.

The sources also confirmed that following the agreement, the Hermez Network now start operating under the name, Polygon Hermez. Polygon has confirmed that it will be releasing no resources from the Hermez Network.

All employees, technology teams, solution providers, and other teams from Hermez Network would not have their positions changed or replaced. They will continue working the way they had been working but the vision of the company would shift to Polygon’s mindset.

The Polygon Network has revealed that it won’t be completely overtaking the Hermez Network but it would simply merge its operations with Hermez. The Polygon Network also aims to benefit from the native tokens (HEZ) of Hermez. The firm has announced that the Hermez token would be exchangeable with the Polygon token “MATIC” at a ratio of 3.5:1.

While the Hermez teams would stick around, the HEZ token is intended to be phased out in the due course. However, the phase-out date for Hermez’s native token is still to be confirmed.

The executives from the Polygon Network shared their views and expectations from the merger between both networks. They stated that they are extremely excited about this merger between the two firms. This particular merger between Polygon Network and the Hermez Network would be added to the history being the first merger taking place between two blockchain networks.

In the world of traditional technology, such mergers take place almost every other day, but in the crypto-blockchain industry, it is something on a completely new level.

The executives stated that they are very glad and excited about the merger and are hoping to see very promising results coming out of it.

Prior to the merger, Polygon Network had shared its interest in the expansion of the ZK proofs, formally known as “Zero-Knowledge” proofs. As Hermez is a ZK-based solution provider, acquiring it would be one of the smartest moves that Polygon Network has made.