Polygon (MATIC) and Hermez begin first ever token merger in crypto history
Polygon, one of the rising stars of the crypto world, has begun the merger of the Hermez token to MATIC tokens and a new token swap app based on a smart contract has been launched for this purpose.
In August of this year, Polygon had announced a merger with the zero-knowledge rollup solution Hermez as the company shifted its sights on to the ZK space and had also expressed its intentions to invest heavily into this space with a view to being the global leader as it believes that this industry would be the next space for massive growth in the ecosystem. As part of this deal, it was decided that the tokens would be swapped in the ratio of 1 HEZ being equal to 3.5 MATIC with the price on August 4 is chosen as the base for calculation.
With that being announced, it was a matter of time before the respective teams got the smart contract ready for the merger, and today, the companies announced that the smart contract was ready and hosted at the Hermez website where the users of the Hermez network can go and exchange their HEZ tokens for MATIC. This is the first time in crypto history that such a merger of tokens has taken place and it is very important that this token merger is done with a lot of care to ensure that funds on either side of the deal are not lost.
The company has provided instructions for the exchange using Metamask and it has also announced that the token swap smart contract would be available for at least 3 years so that the users can exchange their HEZ tokens for Polygon’s MATIC tokens whenever they can. The companies have also advised the users that though the contract might be available even after 3 years, it is advisable for the users to exchange their HEZ tokens as soon as they can as the token might soon be delisted from many of the crypto exchanges.
It is indeed a big and very interesting development for both the Polygon and Hermez networks and it remains to be seen how MATIC is going to be integrated into the zk rollup solution and users and developers would also be very curious about the challenges faced and also the end product that they are likely to see when the integration is complete. This is going to serve as a learning process for others in the crypto ecosystem to use in the future.