Paris Saint-Germain Dives Deeper into Web3, Becomes Validator for Fan Token Blockchain Chiliz
Summary:
Paris Saint-Germain (PSG), the esteemed French football club, is set to enhance its involvement in the Web3 and SportFi realms by becoming a validator for fan token blockchain, Chiliz. In addition to being an income source for PSG, this initiative is planned to foster a sustainable digital economy for the team's supporters through revenue from this validation process directed towards buying back fan tokens. Notably, PSG was one of the early adopters of the technology, launching its fan token in September 2018. This collaboration also includes a blockchain hackathon aimed at attracting developers to build applications incorporating PSG fan tokens.
Paris Saint-Germain (PSG), the renowned football club from France, is taking a further step into the Web3 and SportFi sectors as it becomes a validator for fan token blockchain, Chiliz. Chiliz's founder, Alexandre Dreyfus, and Pär Helgosson, the head of Web3 at PSG, recently disclosed details about this advancing collaboration to Cointelegraph.
As a pioneering football club embracing blockchain protocol validation, the earnings accrued from this new role will be employed to repurchase PSG fan tokens. This move is expected to generate a sustainable digital economy for the team and its devotees. Chiliz Chain, the underlying infrastructure for Socios' platform, handles fan token provisions for over 150 professional football clubs and sports teams globally. PSG showed its forward-thinking approach by adopting this technology early and introducing its fan token on Chiliz in September 2018.
In conjunction with exploring the wider cryptocurrency and blockchain realm, PSG also plans to tap into the opportunities presented by the Web3 and SportFi. Helgosson, the club’s newly appointed head of Web3, leads efforts to discover unconventional financial avenues in the ecosystem.
Animoca Brands, a venture capital firm, became a validator for Chiliz Chain's proof-of-stake authority protocol in November 2023, following the protocol's revamping of its tokenomics model. This also included a new inflation-staking rewards mechanism and the addition of the transaction fee protocol burning scheme EIP-1559.
According to Helgosson, PSG plans to utilize its validator-generated income for the automated buyback of PSG fan tokens from public marketplaces through smart contracts, using decentralized exchanges on the Chiliz Chain. The intention is to augment the validator's revenue, streamline fan token reserves, and foster a self-sustaining economy.
PSG and Chiliz also intend to host a blockchain hackathon at the Parc des Princes stadium, aimed at attracting developers to create decentralized applications incorporating PSG fan tokens on the Chiliz Chain.
Alexandre Dreyfus believes that this forward step taken by PSG could pave the way for other football clubs to better grasp the working of the tokenomics ecosystem and potentially emulate the move. This could enhance trust, bring more brands and developers into the fold, and improve the ecosystem.
With a long-term vision of having numerous validators, including sports organizations, fan-owned nodes, and cryptocurrency firms, Dreyfus aims to enrich the entire sector. Furthermore, PSG's active foray into the world of Web3 is opening up new and diversified revenue streams, including nonfungible token (NFT) collections, and blockchain ecosystem investments.
Helgosson emphasizes that being a node validator forms the backbone of establishing a resilient tokenomics model for both the PSG Fan token ecosystem and for Chiliz as an ecosystem. Thus, this move marks the beginning of PSG's active involvement in the Web3 ecosystem.
Published At
2/22/2024 12:03:12 PM
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