CoinHirek
Paris Saint-Germain (PSG), a major player in French football, is going to further integrate itself with Web3 and SportFi by validating the fan token blockchain Chiliz.
Being the first significant football team to do so, PSG plans to reinvest its earnings from serving as a blockchain protocol validator in order to repurchase PSG tokens. The goal of the move is allegedly to help the team and its supporters build a self-sustaining digital economy.
Socios, a platform that produces and administers fan tokens for more than 150 professional football clubs and sports teams, is built on the Chiliz Chain. PSG introduced its fan token on Chiliz in September 2018, demonstrating that it was an early adopter of the technology.
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With Helgosson leading the charge, the club plans to investigate prospects in the larger Bitcoin, Web3, and SportFi domains.
After Chiliz revised its tokenomics strategy, venture capital firm Animoca Brands joined Chiliz Chain in November 2023 as a validator of its proof-of-stake system. Chiliz integrated the EIP-1559 transaction fee protocol burning scheme and unveiled a new inflation-staking incentives mechanism for CHZ holders.
PSG will try out the token buy-back system initially.
Helgosson stated that PSG will buy back PSG fan tokens from open markets using its accumulated money as a node validator. Smart contracts on the Chiliz Chain’s decentralized exchanges and validator will automate and carry out the buybacks.
Through gas fees and supply inflation that is reinvested into PSG tokens, the initiative seeks to enhance revenue from the club’s validator. To establish a self-sustaining economy, the club is eager to replenish its token reserves:
“Together, we hope to create a sustainable tokenomics model whereby the club, in our capacity as a node validator, can reinvest its earnings back into the fan ecosystem by purchasing back fan tokens.”
According to Helgosson, the change is anticipated to bring benefits, new features, services, and products that will help PSG tokenholders, sponsors, and players.
In the summer, PSG and Chiliz intend to hold a blockchain hackathon at the famous Parc des Princes stadium of the team. The purpose of the event is to entice developers to create decentralized products and applications on the Chiliz Chain using PSG tokens.
A Substitute for Athletic Associations
According to Dreyfus, other teams may decide to follow PSG’s lead and learn more about the tokenomics of the ecosystem as a result of the club’s decision to become a validator.
As for the drawcard, Dreyfus clarified, “PSG will actively participate in the operations of the Chiliz ecosystem, which means they will help foster trust and draw in more brands and developers. They will also co-host hackathons at their stadium with us.”
The goal of Chiliz and Socios has been to provide experiences and goods for the larger sports market. According to Dreyfus, its protocol requires participation from space stakeholders in its governance and continuous operation.
The founder of Chiliz claims that his ultimate objective is to have between dozens and hundreds of validators made up of bitcoin companies, sports leagues, and fan-owned nodes. It is hoped that PSG’s decision will encourage other big teams to think about taking on the role of node operators.
“They have a new source of revenue, diversification, and everyone benefits from being a part of the network effect.”
PSG’s Web3 play Off-the-record talks with Helgosson show that the company is boldly investigating a wide range of approaches to diversify earnings and products within the blockchain and cryptocurrency space.
The club’s first step toward actively engaging in the Web3 ecosystem is its investment to become a Chiliz blockchain infrastructure operator. PSG has investigated and introduced a number of collections of nonfungible tokens, some of which provide holders with special benefits.
Helgosson stated that the club plans to actively interact and reinvest with its Web3 partners, but he would not reveal the specifics of its investment or capital allocation for the Chiliz node-as-a-service agreement.
He emphasized that being a node validator is essential to developing a long-term tokenomics model for Chiliz and the Paris Saint-Germain Fan Token ecosystem.
