Indian Crypto startup Polygon has announced that it will merge with Hermez, a zero-knowledge (ZK) cryptography-based scaling project, in a $250 million deal, making this the first full-blown merger of crypto tokens. 

As part of the deal, crypto startup Polygon will initiate the process of merging Hermez into the Polygon ecosystem, where it will be operating under the new name: Polygon Hermez. Additionally, all components of the Hermez project, i.e. technology, live solutions, its team of 26, and HEZ token, will be integrated into the Polygon ecosystem.

Polygon | Platform For Ethereum Scaling & Infrastructure Development

Started by Jaynti Kanani, Sandeep Nailwal and Anurag Arjun, Polygon (formerly Matic) is a well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. With a market capitalization of over $9.5 billion, Matic is among the top 20 cryptocurrencies, whereas HEZ token has a market capitalization of around $55 million.

Polygon, in a blog post on Medium, stated,

“The maximum amount that will be committed for this merger from the Polygon treasury is 250M $MATIC tokens, or roughly $250M based on the price at the time of reaching the agreement (4 August).” 

Polygon Hermez

As per the crypto startup, this merger deal is their first big foray into the ZK scaling field after they publicly announced ZK-based solutions as their strategic focus moving forward. Using ZK (zero-knowledge) technology, data verification such as transactions and personal information or identification can be done without handing over control of the information.

The Indian crypto startup Polygon also announced that HEZ token holders would be able to swap their tokens for Polygon’s native token (Matic) via the swapping contract, with the swap ratio set at 3.5 Matic:1 HEZ. The two companies will soon announce the swapping contract. Additionally, the HEZ token will cease to exist after a specific date, which is yet to be announced.

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