Hermez is a ZK Rollup scaling network introduced by the Ethereum scaling solutions tech team, iden3. The HEZ (Hermez Network Token) has an issuance of 100 million tokens, and HEZ will operate through two specific methods: auctions and rewards. In the auction, coordinators can bid using HEZ for the right to validate the L2 networks blockchain. When HEZ enters the system through bidding, 30% of the tokens will be burned; 40% will be donated to Gitcoin; and the remaining 30% will be allocated to network participants as a reward for using specific tokens (DAI, USDT, ETH, HEZ) within the network.