Chiliz

Chiliz (CHZ) is a digital currency for sports and entertainment, powering the world’s first blockchain-based fan engagement and rewards platform Socios.com. Fans can purchase & trade branded Fan Tokens as well as having the ability to participate, influence, and vote in club-focused surveys & polls. Chiliz aims to foster a blockchain ecosystem built for sports and entertainment.

Founded in 2018 by Alexandre Dreyfus, Chiliz is a digital currency for sports and entertainment. Chiliz believes that the fans have no influence over their favorite teams or players in the current sports and esports environment. However, the appetite to ‘activate’ fans as influencers exist. Chiliz aims to build a platform where fans get a direct vote in their favorite sports organizations, connect, and help fund new sports and esports entities.

In the 2nd quarter of 2018, Chiliz raised $66 million through Private Placement. After distribution to early contributors, CHZ was publicly listed on major cryptocurrency exchanges.

The largest portion of the fund is being used to build a fan engagement & rewards app, Socios.com, which was launched at the end of December 2019. As the exclusive on-platform currency, fans can use CHZ to purchase these branded Fan Tokens, which give users influential decision-making power by allowing them to vote on polls Chiliz’s partners publish within the Socios app. Ownership also gives fans access to exclusive rewards, engagement, as well as gamification, social interaction, and leader board features etc.

Football clubs including Juventus and Paris Saint-Germain are the first teams to join the platform to produce their Fan Tokens. Socios.com plans to onboard 50+ teams from football and other sporting verticals including esports and other conventional games such as cricket and the like.

Chiliz (CHZ) is a digital currency for sports, e-sports, entertainment platforms, and is adaptable across a wide range of industries. It aims to foster a blockchain ecosystem built for sports and entertainment.

Chiliz is currently an ERC20 token that acts as the exclusive crypto-asset set to power the Socios.com platform. Chiliz enables sports teams and other organizations to create their fan token that can be used as a medium of exchange within the community. When fans enter the Socios.com platform, acquire Chiliz tokens and then use them to exercise their voting rights, they become part of the crowd-managed decision engine for whichever organization they’ve chosen to support. The in-app experience also allows for organizations to activate their offline fanbases with merchandise, giveaways, and exclusive experiences within the Chiliz ecosystem.

Notable partners include large football clubs like FC Barcelona, Paris Saint Germain, and Juventus F.C., which all have issued their fan tokens. These tokens are tradable on the Chiliz Exchange.

Chiliz’ token generation was executed via Private Placement only and completed in 2018 with its hard cap reached. No more tokens will be generated.

Burning mechanism of CHZ:

• 20% of the Net Trading Fees of Chiliz.net Exchange collected in $CHZ will be burnt
• 10% of the Net Proceed of the Fan Token Offering (FTOs) from Chiliz.net platform collected in $CHZ will be burnt + 3 months lock on collected $CHZ
• 20% of the Net Proceed of NFT & Collectibles issued by $CHZ will be burnt

Chiliz run its own permissioned instance of the Ethereum blockchain. This permissioned sidechain is the core of Socios.com. It hosts every team, league, game title or other organization who connects with the platform, together with each organization’s crowd voting mechanisms run as a semi-autonomous organization on this blockchain.

Both Vote tokens and Chiliz tokens created in an Ethereum blockchain – in the main Ethereum network for the Chiliz token and in the Chiliz permissioned sidechain for the Vote tokens.

Ethereum supports the Proof-of-Authority consensus mechanism. Proof-of-Authority (POA) is a replacement for Proof-of-Work, which can be used for permissioned chain set ups. POA does not depend on nodes solving arbitrarily difficult mathematical problems, but instead uses a set of ‘authorities’ — nodes that are explicitly allowed to create new blocks and secure the blockchain. The chain had to be signed off by the majority of authorities, in which case it becomes a part of the permanent record.