Hermez, a Layer 2 ZK-Rollup construction to scale token transfers on Ethereum, published an article on Oct 16 to help users understand its Hermez token (HEZ). There will initially be 100 million of tokens, distributed through auction or as rewards. In the auction, prospective coordinators use HEZ to bid for right to validate blocks on the L2 network as part of the Proof-of-Donation process. As the HEZ come into the system through the bids, they will be distributed in the following way: 1. 30% of the tokens will be burnt; 2. 40% of the tokens will be donated to Gitcoin grants; 3. 30% will be distributed among the network participants to reward users for onboarding specific tokens (DAI, USDT, ETH, HEZ) onto the network and transacting with them.