Hermez Network

Halal Rating :
Comfortable
Last Price $4.09 Last updated:
Rank 961
1D Change -1.53 %
Market Cap $19.21m
Circulating supply 4,700,000
Maximum supply 100,000,000

Crypto Overview

Categories
  • Zero Knowledge Proofs
  • Scaling
  • Rollups

Hermez Network (HEZ) is a Layer 2 scaling solution built on Ethereum that aims to increase transaction throughput while reducing gas fees. The project was acquired by Polygon in August 2021 and has since been rebranded as Polygon Hermez.

The intended utility of HEZ was to serve as a governance and utility token within the Hermez Network ecosystem, where token holders could participate in network decisions and validate transactions. The token was also used to pay for transaction fees on the network.

After the acquisition by Polygon, the HEZ token was merged into the Polygon ecosystem through a token swap where HEZ holders could exchange their tokens for MATIC at a ratio of 3.5 MATIC: 1 HEZ. The merger was completed and HEZ token is no longer actively traded or used.

Key Aspects:

  1. The project had genuine technological utility focused on scaling Ethereum transactions
  2. Token distribution was relatively transparent with clear vesting schedules
  3. Development activity was consistent and focused on technical implementation rather than marketing
  4. The acquisition by Polygon and subsequent token merger was handled transparently
  5. The project did not involve interest-bearing mechanisms or prohibited activities

Crypto Impact

To assign a comfort level investing in Hermez Network from a halal perspective we need to determine whether it has a net positive or negative impact.

Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Hermez Network.

If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.

We will review your contribution for accuracy before publication.

Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.

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Justification for our Halal Rating