  We consider the self organizing process of merging and regeneration of
vertices in complex networks and demonstrate that a scale-free degree
distribution emerges in a steady state of such a dynamics. The merging of
neighbor vertices in a network may be viewed as an optimization of efficiency
by minimizing redundancy. It is also a mechanism to shorten the distance and
thus decrease signaling times between vertices in a complex network. Thus the
merging process will in particular be relevant for networks where these issues
related to global signaling are of concern.
