What is Chiliz Network? $CHZ

Chiliz is an innovative platform transforming fan engagement in the world of sports and entertainment. In this comprehensive guide, we’ll explore the origins of Chiliz, its groundbreaking partnership with Socios, the revolutionary fan tokens, and the versatile CHZ token that powers it all.

Discover how Chiliz is bridging the gap between fans and their favorite teams, empowering supporters with unparalleled access and influence, and revolutionizing the way clubs and entertainers monetize their global fanbases. Dive into the captivating world of Chiliz and uncover the future of fan engagement in the digital era.

Background

Chiliz emerged in 2018 under the umbrella of Malta-based Mediarex Enterprises, a company specializing in fintech and sports entertainment. The platform introduced its first Fan Tokens for the Italian football team Juventus on its affiliated website, Socios.com, in 2019.

Since its inception, Chiliz has achieved several notable milestones:

• In early 2020, FC Barcelona revealed its Fan Tokens, extending the platform’s reach to over 300 million global fans.
• In early 2021, AC Milan introduced its Fan Tokens, generating a staggering $6 million in revenue within just a few hours.
• Between mid to late 2021, Socios.com forged partnerships with multiple NBA teams, starting with the Philadelphia 76ers.
• In late 2021, the platform announced its collaboration with the first NFL team, The New England Patriots.

Spearheading Chiliz as its CEO is Alexandre Dreyfus, a French-born serial entrepreneur. Dreyfus boasts a successful career since 1995, including over ten years of expertise in sports betting and online poker before selling his business in 2012. He proceeded to engage in various projects and investments until co-founding Chiliz.

Chiliz enjoys financial backing and support from several prominent entities in the crypto sphere, such as Binance, Jump Trading, and OKex’s consulting division. The company successfully raised $65 million through the private placement sales of its tokens.

What is Chiliz Network?

Chiliz Network is a leading cryptocurrency designed for sports tokenization, powering the world’s first scalable sports engagement and rewards platform, Chiliz.net. This unique platform also serves as the inaugural sports-centric crypto exchange, allowing fans to trade tailor-made fan tokens and engage in team-specific surveys and pools.

The tokens grant fans voting rights proportional to their holdings, along with access to exclusive discounts, promotions, and content. They also enable fans to test their sports knowledge against one another and compete for prizes like signed club merchandise.

At its core, Chiliz addresses two critical issues: funding and engagement. The platform not only empowers fans to own fractional shares in their favorite teams and actively participate in their operations, but also provides sports and entertainment businesses with access to a global audience. As a result, these businesses can scale their development strategies and flourish in the competitive sports industry.

Chiliz was founded in 2018 by Alexandre Dreyful, who previously created Webcity, an interactive tourism guide company, and co-founded Winamax, France’s largest online poker website. Dreyful sought to harness the potential of blockchain technology to provide fans with a seamless method of engaging with their favorite sports teams while offering teams an effective means of monetizing their worldwide fanbases.

The Socios App

Socios serves as Chiliz’s inaugural consumer-oriented product, offering a scalable, user-friendly app that enables fans to obtain tokenized voting rights for their preferred clubs. The app fosters fan engagement with their teams and grants access to one-of-a-kind rewards, encompassing exclusive experiences, prediction games, and match-day challenges.

Powered by the Chiliz side-chain, Socios facilitates the issuance of fan tokens by interested teams. These tokens represent unique blockchain assets bearing the insignia of the associated team, endowing holders with voting rights to participate in decision-making processes, opinion polls, and surveys related to team management.

Socios empowers fans to directly influence the decisions of their favorite teams. For instance, Arsenal Football Club supporters can use the AFC fan token to vote on aspects like merchandise designs, in-game banners, playground names, or goal celebration songs, all while earning rewards and special experiences. The platform employs smart contracts to ensure clubs respect and implement the outcomes of fan votes.

How Does Chiliz Work?

The fan tokens available for purchase on Socios go beyond being mere collectibles. These team-branded non-fungible tokens (NFTs) establish interactive relationships between fans and teams, allowing fans to influence team decisions. Token holders can express their opinions by voting in polls conducted by teams that have partnered with Socios.

For instance, Juventus FC let token holders choose the celebration song played over the loudspeakers when the team scored a goal. After eight years of using Chelsea Dagger, Juventus fans selected Blur’s Song 2, and the team made the switch. Other examples include FC Barcelona fans selecting a mural for the team’s dressing room, Paris Saint-Germain fans choosing a message to display on the captain’s armband, and the OG esports team allowing fans to pick an in-game banner for a charity event.

The number of NFTs a fan holds corresponds to their voting power: one NFT equates to one vote, two NFTs grant two votes, and so on. This system incentivizes users to acquire and trade more NFTs to increase their influence over decision-making.

Teams and entertainers can offer additional perks to token holders, such as premium seating, live-streamed team meet-and-greets, team merchandise, gamification programs, and leaderboards. As fans accumulate more team-branded NFTs, they enjoy greater benefits and a closer relationship with the team.

Socios partners issue NFTs through Fan Token Offerings, which are stored on the Socios Proof of Authority side chain. Fan token prices fluctuate according to team popularity and supply-and-demand dynamics.

CHZ Token

The CHZ token operates as both an ERC20 token on the Ethereum blockchain and a BEP2 token on the Binance Chain. Its primary function is to provide access to Fan Tokens. On the Chiliz Exchange, trading pairs consisting of CHZ and various Fan Tokens enable users to effortlessly exchange between the two types of crypto assets, ensuring robust liquidity on the platform.

The total supply of CHZ tokens is capped at 8,888,888,888 (nearly 9 billion). A significant portion of these tokens was earmarked for “private placement,” meaning they were sold to private investors or businesses. This, along with allocations to the team, seed investors, and advisory board, accounts for 50% of all tokens created. The remaining distribution consists of 20% designated for the userbase reserve, 15% set aside for strategic acquisitions, and 15% allocated to marketing operations.

Conclusion

Chiliz has emerged as a game-changer in the world of sports and entertainment, fostering a new level of fan engagement and providing unique revenue opportunities for teams and entertainers. Through its innovative platform, partnerships with Socios, and the use of CHZ and fan tokens, Chiliz has created a dynamic ecosystem where fans can actively participate in decision-making processes and enjoy exclusive perks.

As Chiliz continues to grow and expand its reach, it is poised to redefine the relationship between fans, teams, and entertainers worldwide, paving the way for an even more immersive and rewarding experience for all stakeholders in the digital age.