Football fans are the life of most football teams. However, their ability to influence key decisions in their favorite football teams has been limited for so many years. Fans could only engage with their favorite teams by watching games or purchasing fan club jerseys, caps, and other branded items.
Thanks to Blockchain technology, football fans can now influence decisions in their favorite clubs. One of the blockchain platforms that has made this possible is Chiliz. Chiliz and its associated Fan Tokens give sports fans the ability to become active in the operations of their favorite teams.
In this article, you’ll learn about how Chiliz and its partner, socios.com are creating new possibilities for sports fans and what its token, $CHZ, is used for.
What is Chiliz?
Chiliz makes use of blockchain technology to enable a new kind of direct engagement between fans and their favorite sports teams. It is the blockchain platform that powers socios.com and the CHZ token.
Chiliz aims to improve the relationship that exists between sports clubs and their global fan bases through the use of tokens. Its CHZ token enables sports fans to participate actively with their favorite teams when they use it to buy fan tokens on Socios.com.
Socios.com is a fan engagement platform that powers the Chiliz experience. It allows sports fanatics to purchase fan tokens that connect them to their favorite sports teams. Its platform allows sports fans to influence certain decisions made by their favorite team and to vote in club-focused surveys and polls.
Each sporting club that partners with Socios have its own limited supply of Fan Tokens. Also, when they initially join, they must decide on the initial sale price of their Fan Tokens — which is denominated in CHZ.
Chiliz Use Case: Buying Fan Tokens on Socios.com for Voting
CHZ is a coin that gives millions of sports and esports fans direct voting power in their favorite football clubs. This makes fans move from being mere spectators to becoming active decision-makers of the club.
When fans go to the Socios.com platform to purchase fan tokens with CHZ and then use them to exercise their voting rights, they become part of the crowd-governed decision body for any club they support.
However, the degree to which a team immense themselves in socios.com partnership determines how powerful their fan engagement opinion becomes.
All sports and esports teams operating in the Socios.com platform are allowed to create a finite number of Fan Tokens that are tied to voting rights. Fans who acquire tokens are able to exercise their voting rights by voting in polls run by teams that have become Socios partners. For instance, the football club Juventus FC allowed its token holders to select the celebration song that would be played over loudspeakers when the team scores goals.
In addition, Fans of the FC Barcelona soccer club who had the BAR Fan token collectively chose a mural to hang on the wall of the team’s dressing room. Fans of the Paris Saint-Germain football club, who hold the PSG Fan token, collectively chose a message to be written on the club captain’s armband during games.
Chiliz Use Case: Trading Fan tokens on Chiliz Exchange
Chiliz Exchange is a dedicated crypto exchange for Fan Tokens. It is often described as “the world’s first tokenized sports exchange”. The platform allows sports fans and crypto fans to trade Fan Tokens that represent major sports stars. All the Fan Tokens are paired against the Chiliz token (CHZ), which is the base asset across the exchange.
The Chiliz exchange works in a similar way to many cryptocurrency exchanges because it has a simple trading interface that supports the trading of Fan Tokens. Also, traders can trade regular cryptocurrency pairs like BTC/ ETH, ETH/USDT, and so on, on the platform.
Chiliz Exchange can be accessed via Chiliz.net, or you can download the Chiliz Exchange app for iOS or Android.
Every time you place an order on the exchange, the exchange charges you a trading fee. The trading fee is normally a percentage of the value of the trade order. It is currently at 0.20%. This is slightly above the global industry averages for centralized exchanges, which is around 0.10%-0.15%.
The Fan Tokens traded on the exchange also allows you to receive merchandise and VIP invites from such clubs. Some of the clubs that have Fan tokens are traded include Paris Saint-Germain from Ligue 1 (France), Juventus and Roma from Serie A (Italy), West Ham from Premier League (England), Atlético de Madrid from La Liga (Spain), and Galatasaray from Süper Lig (Turkey).
Chiliz Use Case: Means of Payment on Chiliz Blockchain Campus
The Chiliz Blockchain Campus is a center that seeks to connect some of the industry’s largest stakeholders across Asia and Europe, together with other rising blockchain entrepreneurs.
It is located in Malta, with over 2000 sqm of space dedicated to servicing and supporting its members. The Chiliz ($CHZ) token will be used as a payment method for membership and to access other services on the campus.
Chiliz blockchain campus aims to gather the entire blockchain ecosystem under one roof. It’s inspired by the belief that diversity best enables innovation and is welcoming entrepreneurs and enterprises from the entire blockchain space,
These include crypto exchanges, protocols, app developers, media companies to hardware and software suppliers. Some of the world’s largest crypto exchanges are already operating out of the campus: Binance, OKEx, Pundi, Tron, Valora, CoinPaprika, and CoinMarket Cap.
Chiliz Use Case: Transaction Fees on Socios.com
The Socios.com platform earns from its user base of sports and esports fans by charging a micro-fee for all transactions that take place on its platform. These transaction fees are charged in CHZ. However, the act of voting & making decisions by fans on their desired team, league or event, will always be free.
The transaction fees for all of the transactions or trade points on the Socios.com platform are currently at the rate of 4.5%.
All P2P transactions conducted on the Socios.com marketplace, including the buying and selling ownership of Fan Tokens for specific teams, leagues, and events, will be subject to a transaction fee.
Also, all sub-features on the Socios.com platform including possible entertainment features like Leaderboard Leagues, P2P Daily Challenges, and Digital Asset Trading, will be subject to set provider fees for users.
What makes Chiliz Special?
The Fan tokens on the Chiliz blockchain are limited in supply and are offered to fans on a first-come, first-served basis in a Fan Token Offering (FTO) event. Before an FTO, Chiliz network defines the fully diluted market cap and the opening price of such tokens.
Afterward, the fans have the ability to access and vote via the Socios platform by using their fan tokens This entire process in operation is made possible by the integration of smart contracts in the network
However, the clubs are the determinant of how much power the fans have over the decision-making process in their sports teams. This power can range from deciding the jersey design to the matchups of the team in exhibition games.
The company’s team is constantly looking for new ways to transform the world of sports. One of such innovations is the creation of the Chiliz blockchain Campus. The Campus was created to accelerate blockchain technology across Europe and Asia.