Chiliz Token Explained

Chiliz Token Explained

Many fields use blockchain technology apart from finance. Some of these are easy to relate with the technology while others are not so obvious. What we have seen over time is that diverse ecosystems have found the application of blockchain-based tokens useful. 

Chiliz token was deployed primarily for the sports and esports industry. The objective is to meet the engagement and participatory need of spectators while simultaneously meeting the monetization desire of clubs and businesses that are behind games and contests. Consequently, clubs, sponsors, fans and leagues can become beneficiaries of the token.

Problems Chiliz is Designed To Solve  

To be economically successful, the ecosystem that a token is used in must meet the needs of users. For chiliz token, the the project was designed to meet the needs arising from the fact that:

  • In sports and esports, fans are mere spectators and viewers of games. They do not participate as decision makers.
  • Even though clubs transact with their fans by selling licensed products to them, the fans are not active participants in crucial deals concerning the clubs.
  • Irrespective of the fact that there may be millions of them, these fans have no influence on the club or leagues that the clubs play in.

The Chiliz Solution

Chiliz token ($CHZ) engages and monetizes sporting activities. The essence of the token is to create community engagement around sports and esports games with the intention of giving holders of the token voting rights in determining the direction of their favorite teams, organizations or clubs.

Crowd management and fan utilization is also an objective that the token intends to play active roles in. This is especially with respect to leagues, tournaments and events across several industries and verticals. This took cognizance of the fact that sporting activities have continued to attract an increasing number of spectators. 

This is especially so with the spread of digital television. Many of these spectators end up as sports fans. It is a fact that sports clubs monetize the commitment of these fans through several paraphernalia, even though there are limits to the traditional means of financial fan engagements such as sale of club jerseys. 

With the use of the blockchain technology and tokens such as chiliz, sports and esports leagues and games can expose their fan base through greater engagement. For instance sports fans can support their favorite clubs by holding its fan token. With this, they can vote and participate actively in the decision-making process as fans. Their voting power of course depends on the number of tokens that they own.

Esports will to grow by 32% in the next couple of years. Organizations and entities involved can actively monetize their fan base taking advantage of a token built on the distributed ledger technology (DLT) such as chiliz token. The advantage is that it is built on a network and could be very valuable based on utility.

Project Background

The government of Malta licensed the operation of the company and the token it issues. This proves its legitimacy. the participating team members have sports and esports backgrounds.

The Ethereum blockchain, ERC-721 hosts the Chiliz token. The platform is also a member of EEA, the Ethereum Enterprise Alliance. The advisory board of the project has prominent members that have backgrounds in sports and esports. HX Entertainment Limited, an entity registered and operating out of Malta since October 2016 is behind the issue.

The concept of the chiliz token was born out of the need to effectively monetize the fan base. The founders are of the opinion that in the future, the success of sports and esports businesses would depend on this. According to Alexandre Dreyfus, an administrator of the issuer, the size of a league and the fan base that support them would not be as important as their ability to monetize their fan base. 

There is also the need to get the fans involved in the day to day activities of the leagues and clubs. This fan participation not only increases engagement but gives the fans a sense of belonging as stakeholders in their favorite clubs and sporting organizations. Holding the token of a club gives the fan voting rights that practically enables them to be part of the decision-making mechanism of the club.

How Chiliz Works 

The chiliz token ($CHZ) is the engine that powers socios.com, an esports and sports fans monetization platform. The platform gives the fans of clubs and other sporting entities the leverage with which they can actively participate in running such organizations through voting. 

Fans can also become influencers and competitive entities by holding substantial tokens. The engagement of fans is aimed at transforming the fan base from mere spectators to authorities that could have a lot of influence in their favorite esports and sports organizations.

Socios.com gives fans the opportunity to influence the direction of their favorite clubs through the voting power conferred on them through ownership of the chiliz token. As a blockchain-based solution, chiliz utilizes the trustless infrastructure to give the holders voting rights in the relevant ecosystem. 

As a token deployed as a smart contract on the Ethereum network, chiliz, apart from fueling the Socios.com platform, is an entertainment and management tool.  Leagues and clubs can take advantage of to make meaningful popular policy decisions through a crowd empowering voting system.

The enhancement of democratic decisions through tokenized voting does not take away the role of core management teams of sports and esports teams and leagues. It rather gives popularity to certain critical decisions that these teams willingly subject to popular opinion of the crowd or fans.All involved can easily verify the result of any decision-making process such as voting through an explorer on the blockchain.

As the driver of the Socios.com platform, holders of the token are able to access the marketplace of their favorite clubs and organizations. The token purchases branded and licensed products in the sports and esports spheres.

What Decisions Can Fans Vote In?

It is obvious that there are limits to what the management teams would subject to popular opinion. What is clear enough from the Socios.com platform is that the more involved or committed entities generally have the tendency to engage fans through the Socios voting system.

On the Socios.com platform, voting can be club-wide or league-wide. 

At club level, fans can vote on issues such as: 

  • Player selection for friendly matches 
  • A new jersey design and the like. 

For esports, they can even vote on the teams that they prefer their favorite teams to play against. 

At the league level, fans can vote on decisions such as: 

  • How long the season should last
  • Format of the competitive matches
  • New titles that could be added in multiple titled leagues 
  • How matchmaking should be formatted.

Onboard Teams

The Socios.com platform would have far-reaching implications on how fans and teams interact. The platform’s drive for adoption is exemplified in the on-boarding of some top football clubs. These are Paris Saint-Germain & Juventus who were among the first top-flight teams to sign up with the socios.com partnership. The platform presently has dozens of clubs as partners including Arsenal FC, Roma FC, Manchester City FC, AC Milan and more. 

Other sports represented at the platform are motorsports, cricket, football, gaming and fighting.

How To Acquire Chiliz Token ($CHZ)

Getting the chiliz token is essential in fan participation in any form of club governance. The fan can buy the token by signing up at Socios.com. They can also download the app using their email and phone number. Users can buy the token on the platform or hunt for it by playing a virtual adventure game. An in-house referral program is another avenue through which fans can win the token. Other reward programs include polls, in-app games, competitions and more.

Partners can emit specific Fan Tokens. The Socios.com sidechain enables the deployment. The Ethereum blockchain enables the emission of Chiliz. In other words, socios exchanges Fan Token and chiliz, the Socios.com fuel.

So while the chiliz token powers the Socios.com platform, the Fans Token enables the actual voting and influence that the fans exerts through such governance activities. Dozens of Fan Tokens are deployed on the Socios.com platform. Fans have to acquire the token of their favorite teams to start exercising voting rights.

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