Chiliz (CHZ) – bringing sports fans closer to the game
There is no question that the sports industry is a lucrative global market as sports figures, athletes, and teams carry the support of billions of fans from all over the world. However, most teams and sporting leagues don’t necessarily have any platforms for the fans to be able to have a voice in influencing the decisions and directions of their sports organizations directly.
But decentralized technology is finding a new application in the sports industry to do just that. Through Chiliz (CHZ), fans can purchase their team’s fan tokens and engage with their team way beyond just cheering them on. With fan tokens, sports aficionados can even help pick out a uniform design, or even have a say on deciding which players to draft for the next season.
The Chiliz formula is already gaining the attention of major sports leagues with a growing list of official partners. Teams like The Golden State Warriors, Los Angeles Lakers and Arsenal have already signed up, and even the Ultimate Fighting Championship (UFC) already have their own fan tokens on the platform.
How does CHZ work?
CHZ tokens can be used to purchase fan tokens on its fan engagement platform, socios.com or on other approved fan token exchange platforms built on the Chiliz network. In turn, fans gain access to the inside dealings and promotions of their favorite sports organization. Fan tokens are specific to a particular team or league such as the Arsenal Fan Token (AFC) or Manchester City Fan Token (CITY) among dozens more, wherein a single token is usually equal to one voting right.
A fan token is also a cryptocurrency in itself, with a specific set of utilities tied to the team it is associated with. Usually, fan tokens can offer the following benefits:
- Early ticket purchasing for games and matches.
- Voting rights on uniform designs, entrance music, and other variables that influence the fan experience at a sporting event such voting for “best player of the game”
- In some cases, some teams may even allow fan token holders to vote on the locations for trainings or draft lineups
- Access to inner fan circles
- Unlocking merchandise giveaways and other VIP rewards
Furthermore, since fan tokens themselves have limited supplies, they can also be sold or traded for other fan tokens on the socios.com marketplace or on other secondary markets or exchanges where they are listed.
The Chiliz company was founded in 2012 but only started working on the blockchain-powered Socios platform in 2018. The company launched the CHZ token in October of that year which quickly became a largely traded commodity on various exchanges.
The primary success of the token was reliant on the partnerships it generated with prominent sports teams. The Juventus soccer club from Italy was the first team to partner with Chiliz back in 2019 launching its Juventus Fan Token (JUV). After just one month, 1.3 million fan tokens were sold out of a total supply of 20 million.
In recent times, CHZ is one of the best performing altcoins, even outperforming Bitcoin in terms of percentage gains during the bear market, with an 80% surge in value from June to August of 2022.
CHZ is an ERC-20 token with a current market capitalization of $1.4 billion dollars as of November 2022. It has a maximum supply of 8,888,888,888 tokens of which 6 billion are already in circulation.
Upon its launch, 15% of its total supply was allocated for strategic acquisition, 15% for marketing operations, 20% as a user base reserve, 34.5% for token sales and pre-sales, 7.5% seed investors, 5% for project’s team and 3% for the advisory board.
CHZ employs a burning mechanism wherein 20% of the net reading fees on chiliz.net exchange are burned. Also, 10% from net proceeds of token fan offerings and 20% of net proceeds from NFTs and fan collectibles collected in CHZ are also likewise burned making the supply of CHZ deflationary.
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