/ Crypto 101

Coin Profile - Chiliz (CHZ) and its spicy approach to fan-based tokens

The Chiliz (CHZ) blockchain platform has locked on to the world’s hunger for sports and entertainment, and added a little spice on the side. As a long-term player in the fan monetization industry, Chiliz is now extending its reach into Web3 with a blockchain-based platform where enterprise sports and entertainment organizations can build global fan engagement and tokenized income streams.

What is Chiliz (CHZ)?

Chiliz is a Web3 platform for teams and organizations who can join the CHZ network to launch fan-based tokens and integrate Web3 components. The Chiliz blockchain is now in testnet mode with one live flagship project, the Socios platform. Socios combines fan token capabilities with smart contracts and various governance rights, including a mechanism for fans to vote on decisions relating to their favorite team.

Chiliz_CHZ_Coin_Price_Evolution$CHZ Price Evolution

  • $CHZ is the native token of the Chiliz ecosystem and allows users to access the network.
  • The Chiliz consortium blockchain runs on a Proof of Stake Authority (PoSA) consensus model run by all approved stakeholders (whether in Socios or future-built applications).

After the Habanero launch planned for Q4 2022, the Chiliz mainnet 2.0 will be live and the CHZ token will graduate from a one-app token to the currency for Chiliz’s multi-chain ecosystem. Stakeholders will be able to implement Web3 integrations, including DeFi products, NFTs, P2E games, Metaverse products, event ticketing, and loyalty programs.

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Project status

  • July 2012 - Chiliz becomes a subsidiary of Malta-based Mediarex Group, a global sports and entertainment organization founded in 2006.
  • March 2020 - Testnet Scoville launches with CHZ faucet and smart contracts for fan tokens and NFTs (“Scoville” also means a scale for spices)
  • December 13, 2020 - Binance and Chiliz announce a strategic partnership.
  • May 2022 - Chiliz launches their DEX.

Team

  1. Alexandre Dreyfus has deep roots in gaming and sports entertainment, including 10 years as Chiliz CEO, 4 years as CEO of Socios, and before that 6 years running Chiligaming, the first European company to offer casino/gaming services to a US user base. Watch him talk about Chiliz in their intro video on YouTube.
  2. COO Emma Diskin brings extensive experience in communications, PR, and digital marketing and has been with both Chiliz and Socios for about 4 years.
  3. CTO Thibaut Pelletier has been leading the development team of Chiliz for almost 5 years and previously directed app development at Bally Technologies (an iGaming platform) and Scientific Games. He attained both a Bachelor's in Engineering and a Master's in Computer Science.

More on the team can be found on the Chiliz team page.

Making headlines

Does it have staying power?

Competitive?

  • The Chiliz-Socios-Binance 1-2 punch has created quite a brand for Chiliz, and they were the first major tokenized sports exchange to launch.
  • Chiliz is a subsidiary of Meliarex Group, a global sports and entertainment organization, and is a member of the Enterprise Ethereum Alliance.
  • Binance has recently entered the fan token industry with a 2-year, €30 million sponsorship of Italy’s SS Lazio football club.

“Think of us as the Binance of Sports” - Chiliz Update #9

Hiring?
As mentioned in the Headlines section, Chiliz recently onboarded 18 team members. Their website lists 24 open positions, 10 of which are for engineers.

Social traction
Chiliz sports over 500,000 followers, and their social platforms display a high level of organic engagement across the board. Their social vibe is fun, exciting and positive. Being intermixed with people's favorite sports seems to provide a strong following for the project.

Ever been hacked?
No hacks have been reported.

Partnerships
Other than the strategic partnership with Binance, Chiliz has built a large ecosystem of partners, including:

  • Most recently, Chiliz partnered with FC Barcelona’s Barca Studios for a $100 million 24.5% stake in the soccer club’s digital content and distribution hub.
  • Chiliz has also partnered with Juventus and Paris Saint-Germain soccer clubs, the UFC, Atlético de Madrid, and many other entities, including the national soccer teams for Argentina and Portugal.

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$CHZ Tokenomics

Chiliz (CHZ) is an application token that enables teams and other organizations to offer fan tokens to their fanbase. CHZ was first issued as an ERC-20 token and later added to Binance with its BEP2 token.

Total supply
8,888,888,888 (fixed)

CHZ Token distribution
34.5% - Presale and Tokensale
20% - User Base Reserve
15% - Strategic Acquisitions
15% - Marketing Operations
7.5% - Seed Investors
5% - Team
3% - Advisors

Token vesting
No information on token vesting is currently available, but the team mentions they were working on a vesting schedule in 2019. The reality is that the highly transparent core team has been together at Chiliz for a number of years, and perhaps vesting is not quite as essential at this point, especially considering the small 5% team and 3% advisor allocations and a fixed token supply.

Funding
Chiliz raised a total of $66 million, most of it through a private placement funding round in 2018 led by Jump Trading to develop the Chiliz network and Socios platform. Since they reached their hard cap in the private sale, they never had a public sale.

Token utility

  • CHZ is the native platform token
  • It’s the exclusive currency for Chiliz and Socios platforms
  • Enables users to buy fan tokens and NFTs
  • Fan tokens allow users to influence their favorite teams by voting
  • Fan tokens enable participants to be eligible for engagement-based rewards
  • Speculation
  • Later: governance, staking, and usage in Metaverse, DeFi, Gaming and other applications.

Decentralized?
No.

  • The Chiliz network is a consortium blockchain designed for enterprise-level sports and media organizations
  • The website says that governance voting is free but also that it is accomplished through smart contracts (it’s unclear how that will work).
  • Whitelisted developers will be able to create decentralized or centralized applications on the Chiliz blockchain platform.
  • There are currently 146,803 token holders
  • Chiliz's multisig wallet holds about 2.8 billion tokens, or $423 million in tokens (32.5% of maximum supply).

Burning Mechanism

  • Following CHZ’s all-time high in Q1 2021, Chiliz decided to burn $800,000 in tokens or 20% of the total fees netted by the exchange.
  • Now they have a quarterly burn and have so far burned 57,810,149 $CHZ tokens.
  • Chiliz has also held a Head2Head Burn event, where fan tokens get burned after matches according to the match results.

Code Audit
From their website: “We are working with top Smart Contract auditors to ensure Smart Contract security. There will be multiple audits along the way, preparing for launch of the mainnet.”

Team Transparency
The team is highly transparent and has been that way for years (see team info).

Bug bounty?
Yes

Next up for CHZ

Chiliz has a lot in the pipeline for 2022:

  • Finalize smart contracts and get audits
  • Onboard launch partners
  • Fan token cross-chain bridge
  • CHZ Cross-chain bridge
  • Staking & Delegation
  • Chiliz Chain Mainnet 2.0 goes live in Q4 (Habanero Launch)

For more details, read the Chiliz roadmap.

Continue your DYOR…

Chiliz Website
$CHZ on Quadency
Blockchain explorer
Chiliz Exchange
Documentation
Twitter
Discord

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Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.