Chiliz is a way of tokenizing sports and entertainment sectors in a way that it creates a fan engagement platform. What does that actually mean? Most sports clubs make their money by selling tv rights, merchandise and gate receipts (game tickets). Chiliz offers a new, extra way for sport clubs to make money by engaging their fans in some clubs management decisions. Clubs can put up for voting some minor management decision of their own choosing and allow their fans who hold $chillz a saying in those matters. So fans basically pay some small $ amounts for a say in some small management decisions. If you don’t see why would people pay for this, you obviously haven’t ever been a fan of any sports club :)
There is already a lot of clubs lined up for Chilliz services, mostly football (soccer) clubs like AC Milan, PSG, Manchester City, Juventus, Roma, Atletico Madrid, Barcelona… They also have a contract with UFC and some plans on expanding to basketball and different e-sports.
Two key platforms that make up Chiliz
The first is socios.com which is a team crowd management platform. This is a platform that allows already mentioned fans participation in clubs decisions. It does that by utilizing its own $chiliz NFT token. Fans use their $chiliz ERC-20 tokens for voting which is executed by a smart contract on the socios platform. There you can of course buy an unique fan token which is tied to a specific club (so not just $chiliz token but also a specific club token like this one). Holding that token gives you right for voting on different management decisions but also some other perks like discounts on their sports merchandise and some specific perks like getting a signed shirt or even meeting some player.
There are 6 different features on the Socios platform:
- it is an entry point to crypto – by using your credit card you can buy $chiliz with which you can buy your clubs fan token
- trading section – you can buy a particular fan token
- voting for the fans who actually own the fan tokens
- getting some merchandise discounts and other perks by having more fan tokens
- Pokemon GO like feature which allows you to chase $chiliz tokens via virtual reality feature, find the coin and you get it for free
- gaining access to the Locker room – tool used by sports clubs to see how much demand there is for their (potential) fan token
The second $Chiliz ecosystem element is the Chiliz exchange. It is an exchange which allows trading between different fan tokens with the main focus on the $chiliz ($CHZ) token as it is the main trading pair. This is the place where you won’t pay any fees for trading fan tokens so it is always best to trade them here despite them being present on binance and some other exchanges.
4 different tokens of the ecosystem
- The Fan Tokens – these are the tokens that allow voting and give perks to the particular sports club. Some of the biggest football (soccer) clubs with millions of fans are already part of this as we already mentioned. Even though it is still early, reports say that the clubs already earn a few million $ per year by their fan tokens. There is even a Fan Token Offering (FTO) – launchpad designed for the collaborations and projects with the particular fan token. One more cool feature is the fan token burning – the better the team performs the more tokens is burned and its price rises. You can see everything about fan tokens prices at Fan Token Rank.
- Chiliz Token ($CHZ) – this is both ERC 20 and BEP 2 token. This is the fuel of the ecosystem. You use it for everything – from buying Fan Tokens to FTO-s. In the future it will be even possible to buy game tickets with it and they might give some exclusive VIP experiences to its holders.
- Locker Tokens – if a club wants to join the ecosystem it sends the request to Chiliz. They open a “locker” where fans can put their $CHZ tokens for the period of 120 days and exchange it for Locker Tokens. If the fan token is launched the locker tokens are swapped for fan tokens (+10% $CHZ cashback) which are almost always worth more than $CHZ token. If the fan token isn’t launched you just get your tokens back.
- Chilliz ERC-1155 NFT-s – Socios partnered up with Enjin to create ETH based NFT collectibles for partner clubs. Recently they also announced a partnership with Chainlink which should help them to mint their NFT-s in real time which means they can react on actual sport event (like scoring some important goal) and mint limited edition NFT-s to commemorate that event.
If you are a sports fan Chiliz seems to be the way to go with its already incredible partnerships and the potential to be an important part of every sports club in every sport on the world.