Polygon initiates merger of Hermez token to MATIC tokens—new token swap app built
Polygon x Hermez Start Token Merger
Hermez token’s merger to MATIC tokens has commenced. A smart contract-dependent new token swap app is developed for the merger. Polygon announced in August (2021) a merger with Hermez (a zero-knowledge rollup solution) for $250 million. Polygon has now voiced its intentions of full-on venturing into ZK-Rollups capacity development investments (commencing the next phase of its growth). Post the Polygon x Hermez merger, the tokens’ swap ratio is set to 1 HEZ = 3.5 MATIC. The August 4 price was set as the calculation base.
What are ZK-Rollups (Z-KRs)?
ZK-Rs are alternatives built for Layer 2. They augment scalability via transfer processing at mass level. Z-KRs bundle multiple transfers up into a sole transaction. The smart contract tends to verify various transfers initiated in a single transaction. A “zero knowledge proof” is resorted to exhibit and publicly record the block’s Ethereum blockchain validity. Computing and storage resources’ consumption is drastically minimized with Z-KRs in block validations. Hermez is a ZK rollup generating cryptographic proofs referred to as SNARKs. SNARK is an acronym for succinct non-interactive argument of knowledge. Hermez is capable of scaling Ethereum’s per second transactions to 2,000.
Hermez x Polygon: Exchange, Token Merger & Hosted Smart Contract
The Hermez x Polygon’s respective smart contracts are now ready and hosted on Hermez website. To exchange Hermez tokens to MATIC, Hermez Network users can now browse its website for token exchange. The special token merger is unique in the history of cryptoverse—due caution would be exercised to ensure optimal funds utilization. Hermez has released instructions for exchanging tokens (within 3 years) via METAMASK. Hermez emphasizes that users should exchange at the earliest as the contract could get delisted from crypto exchanges.