Hermez Network Token   token: ico review, security check & audits

check date
Sun Jun 13 2021
Source code
-
Address
0xeef9f339514298c6a857efcfc1a762af84438dee
Market Cap(24h)
$60,639,950
0.27 %
Status
COMPLETED
ICO Rating
10
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Overview

Hermez Network token (HEZ) is an ERC-20 utility token issued by an open-source, decentralized Hermez platform in October 2020. The company delivered 4.15M USD in ETH to provide liquidity for the token, which powers the network. The platform didn’t conduct an ICO and doesn’t plan to sell tokens to the open market. It can happen only in case of emergency although the team hopes it’ll never take place.

The Hermez platform employs a Layer2 solution that delivers cost-effective token transfers and swaps with high throughput running on top of Ethereum. The protocol can reduce transfer costs by more than 90% with the help of zero-knowledge technology as zk-rollup enables scaling payments and token transfers on top of the Ethereum public blockchain. It became possible due to computation performed offline while the Ethereum public blockchain is used to store data. Zero-knowledge proofs are used to verify if computations are made correctly.

The platform arranges an auction for the participants who want to be coordinators and create the next batch. The HEZ token is used to place bids in the Coordinators auction. The bid with the highest amount of the HEZ tokens wins the auction while the minimal bidding price is 10 HEZ. A fraction of HEZ tokens is burnt each time a rollup batch is created during the proof-of-donation auction. Hermez employs proof-of-donation technology for the auction that is conducted automatically.

Coordinators on the network are block producers who effectively manage the network by computing the zero-knowledge proof validating the users’ transactions.

Hermez Network Token token price chart

Security checks of HEZ token