Wu said that, according to Lorenz Lehmann, research director at growthepie, Polygon acquired Hermez for $250 million in 2021 and renamed it Polygon zkEVM. However, the development work on Polygon zkEVM has quietly been abandoned, and it has never upgraded to use Blobs, with the chain running at a loss of over $1 million per year. Previously, Polygon co-founder Sandeep announced that he would take over as CEO of the Polygon Foundation and plans to gradually phase out Polygon zkEVM.