Hermez is a ZK Rollup concept expansion network launched by iden3, the Ethereum expansion solution technology team. The circulation of HEZ (Hermez Network Token) is 100 million pieces, and HEZ will be operated in two specific ways through auction and reward. In the auction, coordinators can use HEZ to bid for the right to validate the blockchain on the L2 network. When HEZ enters the system through bidding, 30% of the tokens will be burned; 40% of the tokens will be donated to Gitcoin; and the remaining 30% will be distributed to network participants to reward users for using specific tokens in the network (DAI, USDT, ETH, HEZ).