Chiliz: Layer1 Blockchain Created for the Sports and Entertainment Industry

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As a tool to connect supporters and superstars, fan tokens have always been full of imagination. Fan tokens, as a means of monetisation and crowdfunding for celebrities and well-known IPs, allow supporters to directly participate in investment. As a certificate of rights and interests for supporters, fan tokens allow stars and clubs to have a more liberal  way of fan operation.

Chiliz is one on this track. The project uses blockchain technology to develop the fan influence and reward platform Socios.com and has now launched a series of collaborations with world-renowned large-scale sports industry leaders, including football clubs Barcelona, ​​Juventus, Paris Saint-Germain, Galatasaray, AS Roma, Atletico Madrid, etc., e-sports teams OG, NAVI and UFC. Socios.com has grown into one of the most active consumer-friendly blockchain projects in the world.

Main business

Project Information

Chiliz focuses on the sports industry, and Socios.com is its fan-inspired platform designed to bring fans around the world closer to the clubs and teams they support. Fans can buy, trade and vote on Socios.com. This is the first Layer1 blockchain created specifically for the sports and entertainment industry. 

Chiliz enables sports and entertainment brands to mint NFTs and fan tokens, build DeFi products and Play2Earn games, and create events, loyalty and marketing programs that help them unlock the massive potential of Web3.

We believe that the club directly raises funds from fans through the token, so as to obtain benefits without paying any equity price and without touching the interests of the shareholders behind it. These tokens can also increase the scale of the club’s activities and expand the activity of the fan community. Fans who pay money can also get the pleasure of participating in decision-making and the increasing value of the fan Token economy, which is a win-win situation.

Business logic

Holders can enjoy options including club voting rights, VIP rewards and experiences, “super fan” benefits, discounts on club and sponsor merchandise, game participation and chat room experience, etc. In addition to enjoying benefits, these are available on the Socios.com platform. The issued tokens can also be circulated on any cryptocurrency exchange that supports their trading.

There is a burning mechanism for the fan tokens of a certain club held by fans. For example, during the game, it is stipulated that a certain number of fan tokens will be burned every time the team scores a goal or wins, so that the price of fan tokens will rise. The club also draws fans closer to participation due to digital technology and provides fans with a new experience. In the future, several clubs will be incubated that even exceed the scale of Real madrid. And it’s not just football, but UFC, esports, and more.

This also expands many new ways of fan interaction systems, such as obtaining fan tokens through AR games, and using fan tokens to participate in the quiz of winners and losers. The more in-app interactions, the more rewards fans can get, which greatly provides a sense of stickiness and belonging with the club.

Value of CHZ

Token function

So what role does Chiliz’s token CHZ play in this? When fans want to buy a certain fan token, they need to buy CHZ first, and then exchange it for the corresponding fan token. CHZ itself also has a burning mechanism, and fan tokens can also be obtained by staking CHZ. While it currently appears that CHZ’s main sports partner is football clubs, CHZ plans to partner with other sports such as baseball and basketball.

In terms of token issuance, Chiliz provides Fan Token Offering Launchpad on its official operating platform Socios, to help teams do customised issuance, and to provide dedicated fan token exchanges, functions and interfaces and common centralization. The operational sovereignty of each token is in the hands of the team, and the amount of token issuance is also defined by the team.

The main role of CHZ is to participate in the initial launch of Fan Tokens on the Socios platform and to purchase other Fan Tokens on the trading center. The value of the token comes from the user’s demand for fan tokens. In the future, the platform is expected to expand the payment function of CHZ, including paying on the e-commerce platform, purchasing online and offline event tickets, adding services on the Socios platform and paying with CHZ, etc.

Token value

CHZ has three main values, as follows:

  1. Solving the pain point of competition copyright protection: each team and club has a unique fan token, which can be identified by smart contracts on the blockchain. This unique property makes CHZ ideal for recording and storing ownership of digital products including sporting events, games and collectibles.
  2. Reshaping the liquidity of sports assets: CHZ combines fan tokens with the sports industry to realise the liquidity of IP value, and at the same time, writing the sharing agreement into the smart contract can realise the sharing of income in the process of resale of sports commodities, and effectively stimulate sports’ liquidity in the industry.
  3. Accelerate the capitalisation of clubs: The digital capitalisation of the sports industry will achieve better pricing and circulation for clubs and other entities, thereby stimulating the profitability of the sports industry and promoting the prosperity of fan culture.

Fan Token is a digital asset that can prove that you have voting rights. Share important data in a safe and tamper-proof way, since the information of the public ledger is stored in the end-to-end network, the security and integrity of the data can be guaranteed. Compared with traditional Internet fan groups, CHZ avoids the way of suspected black box operation, which is very important for the implementation of the fan economy concept.

Chiliz’s potential

Chiliz is a highly open Layer1 governance platform. For different countries, cultures and the characteristics of the clubs, it is up to the clubs to decide how to apply the platform. All clubs on the platform will formulate different strategies according to their own needs, and empower fans to participate in it.

In terms of breaking the Web3 circle, only projects with great reputation and low threshold can really realise it. At present, the Web3 sports project with the most potential and the largest number of users is Chiliz. The cooperation with the team brings a broad user base, and the fan token also makes the threshold for user participation low enough.

In the future, as more clubs in various fields join and create with the Socios.com platform, people will enjoy the web3 fan bonus more deeply, participate in decision-making and build clubs together. The value of brand economicalization of different clubs is also different, and a new interaction and governance model of fan Token communication will emerge. 

From the current CHZ ecology, it can be seen that in the future, CHZ will not only link the stickiness of fans of the original club, but also plan to increase the coverage of global fan groups and the interaction of social groups, so as to provide fans with a sense of participation. At the same time, NFT will also enhance the value of competitive activities and create a new phenomenon-level Token social ecosystem. Chiliz still has the certainty of rapid growth on the track.

 

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