Home News Polygon acquires Mir Protocol startup for $400M

Polygon acquires Mir Protocol startup for $400M

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The Polygon (MATIC) project has acquired the Mir Protocol startup, which develops solutions for scaling Ethereum based on ZK-Rollups technology. The transaction amount was $400 million.

As part of the deal, the startup will receive $190 million in MATIC tokens and $100 million in USD Coin (USDC) stablecoins. Thus, the agreement was signed on November 26, the MATIC price is calculated at the exchange rate at that time.

Polygon claims that Mir Protocol has the fastest (0.17 seconds on a regular laptop) zero-knowledge proof technology (ZK-proof). Therefore, this means that it can generate ZK-proof faster and verify more transactions within a single proof.

Rollups from the new division will be ready next year

Under the terms of the agreement, Mir Protocol will rebrand to Polygon Zero. Furthermore, the Plonky2 protocol will form the basis of a solution. Which the project team positions as an ultimate Layer 2 (L2) for Ethereum based on ZK-Rollups.

In a conversation with The Block, Polygon co-founder Mihailo Bjelic noted that the first Rollups from the new division will be ready next year. According to him, the launch of zkEVM from the Polygon Hermez team should happen by mid-2022.

In August, Polygon acquired the Hermez Network platform, which also specializes in L2 based on ZK-Rollups. The transaction value was $250 million. Bjelic emphasized: “We see solutions based on ZK-Rollups and swaps as the only strategic resource for blockchain scaling and infrastructure development. We have a clear goal of becoming a leading company in this area in the coming years”. At the same time, the project announced that it will allocate $1 billion for the development of solutions related to ZK-Rollups.

VCs in talks to invest $50-$150M in Polygon

Earlier in November, the team presented a solution for scaling Ethereum based on ZK-Rollups. Also, they released its central component – a virtual machine using the ZK-Starks protocol as a basic proof system.

The solution name is Polygon Miden. This is an open-source project. Bobbin Threadbare, the creator of the Winterfell cryptographic library, which Novi from Facebook is using, led the development. According to sources, investors can purchase tokens at a 20% discount to the average MATIC price over the past month. In addition, the terms are still subject to discussion.

Previously in December, the media learned about Polygon’s plans to attract up to $150 million in venture capital investments. Moreover, Sequoia Capital India and Steadview Capital were among the participants in a potential deal; to invest in a network of secure L2 solutions and autonomous sidechains.

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