Polygon’s zkEVM Faces Closure Amid Ongoing $1M Yearly Losses

• Polygon zkEVM, born from the Hermez acquisition, failed to deliver sustained technical upgrades or innovation.
• The chain never adopted blob technology, limiting scalability and modern Ethereum Layer 2 compatibility features.
• Mounting operational losses exceeding $1 million annually have prompted the decision to shut down zkEVM.

Polygon’s $250 million acquisition of Hermez in 2021 launched its grand zkEVM endeavor with the aim of deploying zero-knowledge proofs to scale Ethereum.

But the endeavor was not able to make any tangible progress and was technology-wise dormant, not managing to ever integrate Ethereum’s “Blob” technology.