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Any reference to the $CHZ token is not directed at or intended for use by any person resident or located in the United States. Nothing on this website should be considered as an offer to sell, or a solicitation of an offer to buy, any securities or financial instruments, nor should it be viewed as a recommendation to engage in any transaction.
The roadmap for what should be done to help the Chiliz Chain ecosystem explode in productivity in 2024 and onwards is clear now. Read on for a full rundown of the plans, but in case you’re busy here’s the TL;DR:
- Chiliz’ tokenomics is evolving to include inflation, burn & provide the tools to power protocol growth while rewarding our community. Implementation subject to governance approval will happen in March 2024.
- Clubs are becoming node validators on Chiliz Chain & the first one to debut is Paris Saint-Germain (PSG).
- PSG has pledged to use 100% of its revenue as a node operator to conduct decentralized $PSG Fan Token buybacks regularly & support its native web3 initiatives.
- An entity is being set up in the UAE — specifically the Emirate of Ras Al-Khaimah’s Digital Asset Oasis free-zone — and the plan is to help the UAE consolidate a globally effective crypto regulatory framework in the region.
- There’s a DEX launching on Chiliz Chain (JalaSwap) and it’s all about Fan Tokens.
- The Socios.com wallet is going non-custodial and will be able to direct-connect to anything/ everything that’s cool on Chiliz Chain.
- Chiliz is busy finding local leaders in Key Markets to push for more visibility and adoption of the Chiliz Chain where communities like what the ecosystem has to offer the most.
- There’s a big new product line coming to Chiliz Chain in Q1 2024 that is pure GameFi x SportFi goodness — and it’s from some of the biggest names in sport (!)
- There’s a community token launching called $PEPPER and it’ll come with a cool NFT collection too. $PEPPER will act as a connective tissue across the Chiliz Chain universe.
The details below:
Evolving Chiliz tokenomics to fuel the Sports Blockchain’s growth
Nearing the end of Chiliz Chain’s first year of operation as an open, decentralized Layer 1 EVM-compatible protocol, there is now a wealth of information on how this shift has, in turn, affected the economic dynamics of our native $CHZ token — as it exists today and as it’s set to evolve into the future.
The $CHZ asset has had a long journey from beginning life as a ‘simple’ transactional token to its current role as the native governance & gas token of an active, sovereign protocol. Chiliz’ tokenomic structure — specifically a static, now fully vested circulating supply — reflects a design optimal for the asset’s use-case 6 years ago, but one very suboptimal for its role today in a vastly larger, more vibrant & open Chiliz Chain ecosystem.
Chiliz currently lacks allocatable inflation & hard-coded burn mechanisms. This renders the protocol unable to bootstrap long-term community incentives in exchange for broad participation in governance & security. It also precludes the ability to bootstrap long-term incentives for community & ecosystem participation more broadly — whether this comes in the form of liquidity pool incentives for nascent Chiliz Chain-native DEXs, incentives to stake emerging Chiliz Chain-native community tokens, or the like.
The sustainable solution to these limitations is to re-configure the $CHZ tokenomic structure to include dynamically decreasing yearly inflation together with the introduction of a perpetual burn mechanism. While an innovation for Chiliz, these changes place the protocol and its native asset more in line with the economic benefits adopted by the global community of EVM-compatible layer-1 protocol contemporaries. This is an outline of proposed changes. Implementation subject to governance approval will happen in March 2024.
Inflation Mechanism Specifics:
- Initial (year 1) annual base inflation | 8.80%
- Decreasing year over year inflationary decay, using the following formula here | Variable
- Annual inflation stagnation (inflation floor) in 14 years | 1.88%
Transaction Fee Burning Mechanism:
- The Chiliz Chain will implement EIP-1559 wherein the vast majority of accrued gas fees will be burned at a protocol level.
Inflation Supply Allocation:
- Validators/ Delegators | 65%
- Community Vault, $CHZ LP & possible Shared Security Restaking Rewards | 10%
- Ecosystem and Operational (E&O) Distribution | 25%
Clubs working as validators on the blockchain Was a dream. It’s coming true — and PSG is leading the way.
The Chiliz Chain is onboarding the world’s leading sports teams, beginning with Paris Saint Germain, to become a direct part of the protocol’s governance community by running nodes on the chain.
Empowering clubs to become the stakeholders who validate the sport blockchain is great to push further decentralization & execute on the promise of promoting genuine adoption of web3 in sport. When those clubs already have a Fan Token — as is the case with $PSG — it’s great for their loyal community of holders as well.
Clubs who become node validators will use revenue from node operations to support their native web3 initiatives. Paris Saint-Germain, for example, has already pledged to use 100% of its accrued revenue as a node validator on Chiliz Chain to conduct regular $PSG Fan Token buybacks from the public marketplace.
These Fan Token buy-backs will be automated — executed via smart contract by the validator or at the protocol level via DEXs native on Chiliz Chain — and occur at regular intervals. This decentralized Fan Token buy-back program will serve two core functions:
- To ensure that a significant portion of revenue generated by club validators via gas fee accrual & supply inflation allocation will go to directly powering and supporting the team’s native Fan Token economy/ supply.
- To ensure that clubs are able to replenish Fan Token reserves for use in future fan engagement, utility & rewards capacities freely — whether to help power other web3 initiatives or in service of broader digital growth strategies.
- The goal here is to realize a circular digital system empowered by crypto-enthusiasts and digital fans; the evolution of how sports fandom exists on-chain. Paris Saint-Germain is the first to take this leap of faith; providing a roadmap for the majority if not all of the largest Fan Token-issuing clubs in the Chiliz Chain ecosystem to follow in their footsteps.
The protocol will likely increase the number of active validator nodes within its governance infrastructure to enable this growth, continued decentralization & buy-in from the sports world.
Spicing up Ras Al-Khaimah’s Digital Asset Oasis in the UAE
Chiliz is coming to the UAE in a big way, as an entity is being set up in the region that will allow the Chiliz Chain to take advantage of the emergence of a new regulatory framework dedicated to Web3 entities in the UAE.
Sport is universal; it means that the Chiliz Blockchain is inherently a global ecosystem which needs to operate in a globalized business environment. The forward-thinking Emirate of Ras Al-Khaimah and their brand-new Digital Assets Oasis (DAO) free-zone is a perfect place to make this a reality.
Stakeholders from the Chiliz Chain ecosystem hope to actively participate in the on-going formation of regulatory structures/ frameworks being developed by Ras Al-Khaimah & the UAE as a whole for the greater good of compliance-hungry web3 stakeholders globally.
This will be independent business infrastructure & notably will not affect the Socios.com platform — which is regulated in several EU jurisdictions and will focus on full compliance with MiCA ahead of 2025 enforcement. Nor does it affect Fan Tokens, which are already issued under the Swiss Finma regulatory framework.
There’s a DEX launching on the Chiliz Chain & it’s all about Fan Tokens
This is a straight forward update but one we’re really excited about. JalaSwap Is set to launch on Chiliz Chain not only as the first native DEX on the protocol, but the first DEX that’s focusing primarily on facilitating decentralized trading for Fan Tokens as an asset class.
There’s lots of alpha on this addition to the ecosystem that we’ll be helping the JalaSwap team share soon, including DEX tokenomics — which will include $CHZ burning mechanisms — liquidity pool provision incentives and more.
The Socios.com Wallet is going non-custodial
By the end of Q2 Socios.com will support a non-custodial wallet on the Chiliz Chain which will support a FIAT on-ramp and focus on providing discovery features for select Chiliz Chain-based dApps directly from within the app.
This ‘dApp marketplace’ feature within Socios’ new wallet will give developers on Chiliz Chain direct access to Socios.com’s 2.2 million-strong user base and serve as a direct brand exposure bridge within Socios.com’s environment.
We’re attacking Key Markets by asking for help from local leaders
Chiliz will focus on onboarding strategic partners in key regions, beginning with South Korea, Japan, the Middle East (Saudi Arabia & the UAE) and Brazil.
Our focus in these markets is to engage top tier industry leaders from outside the small world of native web3 — helping them to become node validators, utilize the Chiliz Chain to execute on broader business goals and help ensure that the Chiliz Chain is is a tool for business acceleration for them
We’ll have specific news across each of these aforementioned markets hopefully coming in the next two quarters, but here’s the most recent example:
Chiliz adds K League and Web 3.0 fantasy specialist Unagi to sports-focused blockchain
There’s a big new product line coming to Chiliz Chain in Q1 2024 that touches GameFi & SportFi
It’s from some of the biggest sports properties in the world, it’s all powered by the Chiliz Chain & that’s the only thing we’re saying right now because this is a shameless tease (also we’re under NDA until the folks launching it make an official announcement).
There’s a community initiative (including a token) called $PEPPER coming to Chiliz Chain
The $PEPPER Token
$PEPPER might have been teased simply as the “First AI-generated Entertainment Company” but our plans for this initiative are a bit more concrete than this. Speaking broadly, as a token, $PEPPER will represent a cohesive cross-platform asset that the Chiliz team can use to connect, reward and incentivize both our core native community of Fan Token holders & Socios.com user but also provide for users on any platform integrated with the Chiliz Chain.
$PEPPER isn’t a commercial endeavor and we will be transparently & verifiably committing to fair launch allocations, offering the token exclusively via rewards airdrops on a TBD basis across all eligible wallets (both Chiliz-operated i.e. Socios.com and via 3rd parties operating on the Chiliz Chain via non-custodial wallet integration).
We’ll be placing high transaction fees into the $PEPPER smart contract to incentivize holding and will commit a TBD percentage of $PEPPER supply to earmark towards rewards allocations on Chiliz Chain-native DEXs and enable daily $PEPPER farming via $CHZ token lock-ups at launch as well.
The Peps NFT Collection
We’re making an NFT community that’s going to function like an AUX plug directly into the Chiliz Chain ecosystem.
Once we’ve integrated CAP-6551 (i.e. ERC-6551 standard) support onto Chiliz Chain, we’ll launch the Peps — a collection of 8,888 community NFTs that can act as wallets. That means we’ll be able to airdrop whichever Chiliz Chain-minted assets we want into the Peps on demand.
Airdrops can be from the Chiliz team directly or from any operator on the Chiliz Chain — since they can be anything from meme coins, web3 game assets or NFTs denoting ownership of real-world assets — we’ll leave the evolution of the Pep community’s utility to your imagination for now.
The Vision for $PEPPER & our gang of Peps:
Both the $PEPPER token and our Peps NFT collection are at their core community infrastructure. Ownership denotes general engagement within the ecosystem like any other community asset program. Our vision is to build a utility/ redemption/ transactional infrastructure on behalf of these assets which takes our unique position within crypto into account.
Our niche is bridging sports & entertainment industries into web3 and much like Fan Tokens offer utility to specific sports brands, $PEPPER & the Peps should act as a generic asset layer that stakeholders can plug into — and out of — to engage the Chiliz Chain user community by offering value as they see relevant.
