Paris Saint-Germain Partners with Chiliz Chain as Blockchain Validator

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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February 22, 2024

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French soccer powerhouse Paris Saint-Germain (PSG) has announced its foray into blockchain validation by becoming a network validator for the Chiliz Chain blockchain, which hosts its PSG fan tokens. This move will see PSG utilize the revenue generated from validation to implement a regular buy-back program for its fan tokens.

We're excited to announce that @PSG_inside is partnering up with Chiliz to become the first ever sports club validator of a blockchain. 🤝🌶️

Paris Saint-Germain commits to reinvesting all validator revenue into buying back $PSG Fan Tokens. ⚽#ChilizChain ⚡ $CHZ

— Chiliz ($CHZ) – The Sports Blockchain ⚽🏆 (@Chiliz) February 22, 2024

While sports clubs have previously ventured into cryptocurrency by creating fan tokens, PSG’s decision marks the first instance of a club actively participating as a blockchain validator.

PSG to Serve as Blockchain Validator, Reinvest Revenue in Fan Tokens

Announced on February 22, PSG will become the first major football club to serve as a blockchain protocol validator, leveraging its position to reinvest revenue from validation activities into buying back PSG fan tokens. This initiative aims to foster a self-sustaining digital economy for the club and its fan base, marking a significant step in the intersection of sports and blockchain technology.Validators play a crucial role in managing blockchain nodes, ensuring network security through transaction verification and smart contract authorization, and thereby earning revenue from their node operations.Chiliz Chain, the underlying infrastructure powering Socios, the platform facilitating fan tokens for over 150 professional football clubs and sports teams, is the backbone of PSG’s fan token ecosystem.Having introduced its fan token in September 2018, PSG has witnessed significant growth in its token’s market capitalization, which now stands at an impressive $28 million.Implementing the buy-back program aims to replenish PSG’s fan token reserves regularly, fostering a sustainable digital economy around them, as highlighted by Chiliz.Chiliz, the operator of the Chiliz Chain, retains 20% of network transaction fees, while the remaining 80% is allocated to network validators and delegates.According to Chiliz, the automated buy-backs of PSG Fan Tokens, facilitated via smart contracts executed by the validator or through decentralized exchanges on the Chiliz Chain, are scheduled at regular intervals to fortify the club’s digital economy consistently. This buy-back program ensures that a significant portion of revenue from club validators, including gas fees and supply inflation, is reinvested into bolstering the PSG Fan Token supply.

Expanding Web3 Initiatives and Hosting Blockchain Hackathon

Chiliz boasts a $1 billion “SportsFi” ecosystem, with its flagship platform, Socios, enabling users to acquire and trade “Fan Tokens” issued in collaboration with leading sports clubs, including the $PSG token. Fan Token holders enjoy various benefits, such as access to exclusive content, participation in club decisions, and exclusive merchandise offers.PSG is poised to explore broader opportunities within the cryptocurrency, Web3, and SportFi landscapes under the leadership of Pär Helgosson, who recently assumed the role of the club’s head of Web3. Helgosson’s mandate includes exploring alternative financial avenues within the ecosystem to enhance the club’s financial resilience and innovation capabilities.Helgosson emphasized the club’s commitment to shaping the future of web3 sports by actively engaging with fans through web3 experiences. He stated that this initiative is designed to provide rewards, utilities, and benefits to PSG tokenholders, sponsors, and players, thereby enriching the fan experience.

“We’re aiming to build a sustainable tokenomics model together where the club, because of our role as a node validator, can use the profits to buy back fan tokens and use them to reinvest back into the fan ecosystem.”

The partnership between PSG and Chiliz gained further momentum with the addition of venture capital firm Animoca Brands as a validator of the Chiliz Chain. Notably, PSG joins renowned soccer clubs such as FC Barcelona, Manchester City, Juventus, Arsenal, Inter Milan, Tottenham, and AC Milan to utilize Chiliz’s platform for fan tokens.In addition to these initiatives, PSG and Chiliz are set to host a blockchain hackathon at the iconic Parc des Princes stadium in the summer. This event aims to attract developers to create decentralized applications and products incorporating PSG fan tokens on the Chiliz Chain, further fostering innovation and collaboration within the ecosystem.