Chiliz (CHZ) is the name of an Ethereum-based token used within the Socios.com sports fan engagement app. It serves as a utility token for the platform, enabling sports franchises to issue Fan Tokens on the Chiliz permissioned Ethereum sidechain.
Socios.com seeks to change the relationship between sports fans and the teams they love. Clubs can use the platform to launch Fan Tokens via a Fan Token Offering — or FTO. These Fan Tokens are tradable on the Chiliz Exchange.
Fan Tokens give holders special privileges, such as voting rights for club decision-making. The project's documentation provides choosing goal celebration songs and naming a club's training ground as examples. Active fans can earn exclusive rewards too.
Launched in 2019, Socios.com quickly attracted the attention of major sporting clubs — particularly from the soccer world. Among others, the project's signings include Paris Saint-Germain, FC Barcelona, İstanbul Başakşehir and Juventus.
Socios.com operates a private, proof-of-authority Ethereum sidechain. Fan Tokens are minted and fan polls are conducted on the Chiliz network.
CHZ serves as a currency for the platform. Those wanting to buy Fan Tokens must do so using Chiliz. However, the Socios.com app gives the option to fund an account with fiat currency before exchanging it for CHZ. This makes Socios.com more accessible to those not familiar with cryptocurrencies.
A finite supply of 8.8 billion Chiliz was created before Socios.com's launch. Demand for the tokens determines the current CHZ price.
CHZ is used to pay for Fan Tokens issued by some of the planet's most prominent sporting clubs. Fan Tokens give exclusive perks to their holders, which should encourage platform users to buy Chiliz.
Creating a greater supply/demand imbalance are regular CHZ token burns. As of March 2021, around 47 million CHZ — worth just over $3.5 million — had been burned. Assuming demand remains consistent, such reductions to circulating supply should push Chiliz price up. Fan Tokens issued on Chiliz are also finite in supply with a percentage systemically sent to the burn address.
Ideas for Chiliz and Socios.com began circulating around 2016 when the company behind the project, HX Entertainment Limited, was registered in Malta. Active development began in early 2018 and was funded by $66 million contributed by a private placement stock sale.
Today, the company employs more than 80 team members. Its CEO is Alexandre Dreyfus. Before working on Chiliz, Dreyfus was the CEO and owner of the iGaming group Chiligaming and a co-founder of the online poker room Winamax.