HEZ Hermez Network

Hermez Network, represented by its native token HEZ, was a decentralized ZK-Rollup focused on scaling Ethereum transactions. Its primary goal was to increase transaction throughput and reduce fees on the Ethereum network by batching thousands of transactions off-chain into a single transaction on the mainnet. This approach aimed to provide a more efficient and cost-effective way to transfer tokens, especially for frequent transactions.

The core technology of Hermez Network revolved around zero-knowledge proofs (ZKPs), specifically SNARKs (Succinct Non-Interactive Argument of Knowledge). These proofs allowed the network to verify the validity of off-chain transactions without revealing the details of each individual transaction, ensuring both scalability and privacy. The network utilized a proof-of-donation mechanism for its sequencer selection, where participants would bid HEZ tokens to become sequencers and process transactions, with the donated HEZ being burned. This mechanism was designed to align incentives and contribute to the network's deflationary model.

HEZ served multiple purposes within the Hermez ecosystem. It was used for staking by sequencers, who were responsible for batching and validating transactions. HEZ also played a role in the network's governance, allowing token holders to participate in decision-making processes regarding the protocol's development and future direction. Additionally, the token was integral to the proof-of-donation mechanism, where HEZ was burned as part of the sequencer selection process, creating a deflationary pressure on the token supply.

In early 2022, Hermez Network merged with Polygon, forming Polygon Hermez (later rebranded to Polygon zkEVM). This merger aimed to combine Hermez's ZK-Rollup technology with Polygon's broader scaling solutions, further advancing the development of ZK-Rollups for Ethereum. The HEZ token was subsequently swapped for Polygon's native token, MATIC, marking the end of HEZ as a standalone asset and its integration into the Polygon ecosystem.