What is Chiliz (CHZ)?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 4 min
In short
Chiliz is the blockchain and token behind 'fan tokens' issued by sports clubs. Supporters holding a fan token can take part in club-run polls and access merchandise or event perks. CHZ is the currency used to buy those fan tokens.
Key points
- Provides the mechanism for football clubs and other sports bodies to issue fan tokens
- CHZ is used to buy those fan tokens, each club having its own
- Votes typically cover matters like anthem selection or design choices, not club management
- Most users buy and use them through the Socios.com app
Definition
The blockchain that underpins the issuance and trading of sports clubs' fan tokens, and CHZ, the token used as its base currency.
Reaching supporters who live far away has long been a problem for sports clubs. Chiliz offers a token-based mechanism as one way to give people who cannot attend matches a connection to their club.
A club issues its own fan token and supporters buy it with CHZ. Holding the token lets you vote in polls the club runs in the app. Those polls cover things a club can reasonably delegate, such as which song plays before kick-off or which kit design to use.
Beyond voting, fan tokens grant access to limited merchandise, eligibility to enter player meet-and-greets, and perks at the stadium. The operating company signs agreements with clubs and handles issuance, distribution and the in-app experience.
Football clubs make up the bulk of partners, but combat sports organisations, motorsport teams and esports teams have joined as well. A fan token is not equity and carries no right over club decisions or profits.
Watch out for
- · A fan token is not equity or membership and confers no rights over management or profits
- · Perks and polls depend on the club and operator, and can end when an agreement ends
- · Individual club tokens trade thinly, so there may be no counterparty when you want to buy or sell
Frequently asked questions
Does a fan token give a say in how a club is run?
No. Voting is limited to topics the club sets in advance; management decisions such as signings or budgets are not included.