MXC AMA Recapitulation- Chiliz (CHZ)
Yity@MXC
Guest: Siyi, Community lead & Crypo marketing specialist of Chiliz(CHZ) in China
Host: Lucky
Introduction:
Chiliz ($CHZ) is a leading digital currency specially for the sports and entertainment industry.We work with these partner clubs to create branded Fan Tokens. Fan Tokens are a tokenized ‘share of influence’, allowing fans to vote in certain club decisions and win multiple fantastic rewards, including money-can't-buy experiences, meeting team members, limited editions rewards, offers, access to club related content and etc.
The company’s consumer facing app Socios.com launched in late 2019, and CHZ is the exclusive crypto that fuels the platform. For all the users on Socios.com, they need to use CHZ to exchange Fan Tokens and participate in Fan Token Offerings to have the first chance to own a Fan Token at a flat price.
So far we have announced 20 sports & Esports partnerships in total, and launched the Fan Tokens for most of our announced partners already. We are also partnering with the world’s leading MMA organizations UFC and PFL. We will have more great partners to announce very soon, so stay tuned :))
Questions from community:
Lucky: Q1.What are Fan Tokens?
Siyi:Yep, I guess some friends here are not that familiar with Fan Token.
So, Fan Tokens are a kind of digital assets that represent your ownership of a voting right of your fanourite clubs and give you access to earn unique club-specific rewards and experiences.
And you can own as many Fan Tokens as you want 😄 Just one Fan Token gives you the right to vote in every poll that the club publishes. However, owning more Fan Tokens can give you more power in voting (but each club will impose a voting cap, meaning that one person can never ‘control’ the vote).
Also owning more Fan Tokens gives you the access to more benefits and discounts from the club and its sponsors. You will have a bigger chance to win the exclusive prizes by owning larger quantity of fan tokens.
Your Fan Tokens won’t be ‘spent’ on a poll, meaning that your supply of Fan Tokens will never decrease no matter how many times you vote.
Each Fan Token has a limited supply. At the end of last year, we introduced a burning mechanism for Fan Tokens, which means the total supply of Fan Tokens will be decreased permanently in terms of the club’s performance, so the tokens can only become more scarce.
We have tested the burning mechanism on $PSG, the official Fan Token of Paris Saint-Germain during the final of Trophée des Champions 2020 in January. We burned 10k Fan Tokens per goal and 20K per victory, and because PSG won by 2 goals, we burned a total of 40K PSG Fan Tokens during this match. You can find the burning history here - https://www.fanmarketcap.com/burn-data/fan-tokens
Lucky: Q2. If I buy an OG Fan Token, what benefits will I get?
Siyi:Owning a OG Fan Token gives you the right to vote in any OG polls that run on Socios.com —— which is our consumer facing application, and it is the world’s first blockchain based fan engagement & reward platform.
Also, users can enjoy many other club-specifc exclusive benefits and rewards, for example VIP tickets, signed merchs, exclusive digital or on-site experience and etc.
Here is an interesting poll we launched with OG - https://twitter.com/Socios_Gaming/status/1235182391217606667
So asked all the OG Fan Token holders to choose the team banner to represent OG in last year’s major circuit. And several esports KOLs on social media noticed this change and asked about the story of the banner, very interesting.
Also, we are constantly looking to expand the utility of our Fan Tokens. We recently launched a Chat Room feature which allows Fan Token holders to talk to each other, currently it’s in an ‘early phase’ as we plan to add more features. We expect to see more and more fans making use of these chat rooms during match days and important key club events!
We are working on in-app gamification which will allow users to gain xp for performing certain tasks, gaining achievements in the form of badges. Our CEO Alex Dreyfus recently shared some spoilers about this on Twitter! You can have a preview here - https://twitter.com/alex_dreyfus/status/1354734472642572289
Also as I mentioned above, we have upgraded the Fan Token economics and introduced the burning mechanism, so based on the team’s excellent performance, the total supply of their Fan Token will decrease and become more scarce.
So basically the better performance the team has, less Fan Tokens. More fans, less Fan Tokens
Lucky: Q3.What’s the Business Model for CHZ and Fan Tokens?
Siyi:Ok, our business model is very easy to understand.
Basically we take a commission (%) of the transactions processed between fans/clubs.
We issue Fan Tokens at a commonly acceptable flat price for fans through Fan Token Offering. All Fan Tokens require $CHZ to purchase. Eventually, Fan Tokens are tradable between users and traders.
So the more fans we onboard, the more teams we onboard, the more tokens are transacted and the more revenue we generated.
As for the token's economics, we have launched a burning mechanism for CHZ too (technically not burning as ERC-20 doesn’t have a burning feature, but sending tokens to a black hole address).
And it works as -
- 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.
Lucky: Q4.Why would sports/esports teams partner with Chiliz?
Siyi:When we started to pitch the teams in 2018, they clicked immediately about how they could make use of the technology to bring innovation to their fans and offer them something they never did.
Also, this is a great way for them to generate a new revenue stream. We now have a partnership team of 4 people dedicated that are talking to 50+ clubs right now worldwide.]
There is a big network effect obviously, so once we will have more partners, more will want to join.
We have the first mover advantage and we showed these teams that we can bring innovations and revenues, so they are willing to work with us naturally.
In 12 months, we have proved that this digital innovation is becoming a massive hit and can bring real value to sports organisations. Last December, PSG and JUV daily trading volumes hit a high of $300M. In just over a year, over 14M Fan Tokens have been sold and over $30M has been generated for clubs and partners.
Lucky: Q5.What are your advantages compared with other competitors?
Siyi:This might sound a bit too proud, but honestly, there are no other sports-related blockchain companies that are doing what we do.
We are the only blockchain company that is tokenizing sports teams, that has also not only one, but 20 teams signed, which includes some of the biggest names in the sports and Esports industry - and more to come.
Socios.com app is very mainstream-friendly. Though it’s implementing blockchain technology, you won’t find any professional blockchain terms or features that are difficult for the general users to understand or accept. It is as easy as using any other mainstream consumer-facing apps.
And within the app we have deployed fiat purchasing function, so basically any users can purchase Fan Tokens and CHZ as long as they have a credit card. Users would need to use fiat to purchase CHZ first then use CHZ to buy Fan Tokens. So for ordinary users, buying Fan Tokens is as easy as online shopping.
We have also launched several unique features on Socios.com. For example, there is the Token Hunt feature, which is an AR mini-game that allows users to ‘hunt’ fan tokens and CHZ for free, just like Pokemon Go.
We also introduced the Locker Room feature, which is an innovative way to allow fans to pre-buy proxy Fan Tokens for potential partners in exchange for the exclusive opportunity of owning the potential partners’ Fan Token at the flat price, and gain a bonus for their staking - if we successfully made the partnership happen.
Last October, we launched three Locker Rooms, and one of them has already turned into the offical Fan Tokens for AC Milan. Last month, we launched a new Locker Room for our potential Formula 1 partner, which has been sold out already.
In one year, we managed to gain 450,000+ users for Socios.com and will keep building more features for the app to increase the engagement.
Free-asking Session
Q1.When you think about it, its kind of an apt name, as Binance is the king of IEO’s, and you’re attempting to be the father and king of FTO’s.
FTO’s are always in CHZ right?@LLeeKuanYew
Siyi: Yes, actually we have registered the trademark 'FTO' 🙂 You need to use CHZ to participate in all the Fan Token offerings, either on Socios.com or Chiliz.net.
Q2.The fan tokens issued beyond CHZ, in addition to offering the right to participate in official team surveys, what do you think if they would offer rights similar to those enjoyed by members of sports associations? For example, Barcelona FC and Real Madrid, which are not companies with shareholders but clubs with members, offer priority tickets and the opportunity to participate in club decision-making meetings to club members. Since most sports teams are companies (such as the existing partner teams Juventus and PSG) where 100% of the decision-making power is in the hands of the majority shareholder, Socios fan tokens could be the solution to provide a decision-making power and participatory benefits (such as priority tickers) to the fans.@ineed688btc
Siyi:Actually if you read my AMA, you should know that we have launched a mainstream-facing application called Socios.com. Yes, we borrowed the Spanish word 'Socios' from the traditional football business model, like what Barcelona (our partner already) and Real Madrid are doing. Fan Tokens can not only provide the voting rights on certain decisions of the clubs, but also giving exclusive rewards and once-in-a-life-time oppourtunities to the fans, like signed merches, VIP tickets, private meeting with players, etc. (We have our own VIP box on almost all of our partners' stadiums, just for fans :)).
Q3.Chiliz opened an exchange to exchange fan coins for sports fans and investors. But where do these tokens get their market value? Are the token values related to the team's results? Does the value of the token increase when the team wins a match and the value of the token decreases when it loses?@HTaraca
Siyi:Yes, we have our own marketplace for trading all the Fan Tokens and the other sports & entertainment tokens. All the Fan Tokens are launched at a flat price either through Fan Token Offering or locker room, and when they are listed in secondary market, the price will be determined by the demand & supply.
As for the relation between token value and the team performance, I think it mostly depends on each team's fan base. So as said above, more fans, less fan tokens. And we have launched the burning mechanism for fan tokens, you can find the details from my explanations there. So the better performance, less fan tokens.
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