This article comes fromThe Block, original author: Yogita Khatri
Odaily Translator |
Summary:
This article comes from
, original author: Yogita Khatri
Odaily Translator |
secondary title
Polygon acquired Hermez Network, an Ethereum Layer 2 scaling solution, for $250 million.
Earlier this year,In the first transaction of its kind in the crypto space, the two projects will merge their native tokens MATIC and HEZ.Ethereum expansion project Polygon (formerly known as Matic Network) has acquired Hermez Network, a ZK-Rollup-based Ethereum expansion solution, for $250 million. The two projects will also merge their native tokens MATIC and HEZ, the first ever transaction of its kind in the crypto space.
According to Polygon, Hermez's products will be merged into Polygon, and the new project will be named "Polygon Hermez." As part of the deal, 26 Hermez employees will also join Polygon's 80-person team.Polygon co-founder Mihailo Bjelic said, “As far as we know, this is the first time in crypto history that blockchain networks have been fully merged, where one network will fully absorb the other network, including its token.”Earlier this year,
Two Ethereum Projects Keep and NuCypher Merge Their Protocols
, but they maintained the independence of their respective brands and did not merge their respective tokens.
Hermez announced
The possibility of merging with a public network was being "discussed." At the time, the two projects decided on a token peg or swap ratio based on prices at 11:00 CET on Aug. 4.
The peg ratio disclosed today is 3.5 MATIC : 1 HEZ, which means HEZ token holders can exchange their tokens for multiple MATIC tokens from Polygon. This will be achieved through an exchange contract that the project will release "soon".
When asked if token holders had any say in the transaction, Bjelic said Hermez’s largest token holders (more than 90% of token holders) were aware of the conversion ratio, And they all agree. The deal was made possible because HEZ is still a “pretty early stage coin,” he said.
Based on token prices on Aug. 4, Polygon has pledged to set aside a total of 250 million tokens, or approximately $250 million, from its Treasury for the merger. According to Bjelic, this is equivalent to 12.5% of Polygon Treasury, and 2.5% of MATIC’s total supply. According to CoinGecko, the total supply of MATIC tokens is 10 billion, and the current token price is around $1.40.
secondary title
Invest in expansion solutions
