Layer-2 protocol Polygon volition be merging ZK-rollup project Hermez Network into its ecosystem for $250 million worth of MATIC tokens.

In a Friday declaration, Polygon said Hermez would become a role of the network's suite of solutions under the name Polygon Hermez. The 26 people in the Hermez team equally well as its tech and solutions — including piece of work on an Ethereum Virtual Machine-compatible solution — will bring together the platform.

As part of the merger, holders of Hermez's native HEZ will be able to exchange the tokens at a rate of 3.5:1 to Polygon's MATIC tokens. Polygon said HEZ tokens would somewhen be phased out at an unspecified date.

"We believe this is in a manner a historical moment since this will be (to the best of our cognition) the first total-blown merger of two blockchain networks," said Polygon. "[Mergers and acquisitions] in the traditional tech earth are an everyday thing. In blockchains, however, they are a new and very interesting concept."

The merger with Hermez is part of Polygon's expansion into cipher-knowledge, or ZK, proofs. The project has committed $1 billion to ZK-based solutions and plans to continue to form partnerships to grow its suite of solutions.

As a ZK-rollup, Hermez uses zero-knowledge proofs to verify the definiteness of a large batch of transactions. An outside ecosystem executes these transactions and generates proofs for them, which are then posted direct on the Ethereum blockchain. The system is aimed at saving block space — a standard transfer of Ether (ETH) might have just 100 bytes on the chain, while a transaction with Hermez would only be ten bytes.

Related: Tether launches on Hermez rollup as Ethereum starts falling backside

Though the companies will remain separate entities, Go on Network and NuCypher announced in March they volition integrate their information encryption and protection protocols into a new network chosen Keanu. Though the projects said they will class a decentralized autonomous organization, the development will be driven by two contained teams rather than a full merger.