Chiliz (CHZ) (Launched June 2019) is an ERC-20 and BEP-2 utility cryptocurrency token issued by the Company, Chiliz, based on the Ethereum and Binance Blockchain. Chiliz (CHZ) is a cryptocurrency token that can be used by sports fans to acquire Fan Tokens and it functions as the native utility token that powers Socios.com's ecosystem. Chiliz, the world's first tokenized sports exchange, is described as the world’s leading blockchain FinTech provider for sports and entertainment.^[1][2]

In December 2020, Chiliz partnered with Binance and started to allocate Fan Tokens through Binance Launchpool.^[3]

In January 2021, Chiliz partnered with A.C. Milan to launch the ACM Fan Token on Socios.com. The addition of AC Milan takes the number of sporting organizations on the Chiliz blockchain to 20. ^[4]

Overview

Chiliz, powering Socios.com, gives sports and esports fans the ability to crowd-manage their favorite teams, games, leagues, and events.^[5] Chiliz raised just over $66 million through private placement in 2018. ^[6]

Socios.com is Chiliz's consumer-facing product and the hub for fans to buy tokenized voting rights in their favorite teams. The app counts many of the world’s football clubs and esports teams, including FC Barcelona, Juventus F.C., Paris Saint-Germain F.C., Atlético Madrid, A.S. Roma, Galatasaray S.K.& OG among its partners. Socios.com allows sports teams to issue digital assets, known as Fan Tokens, onto the Chiliz blockchain via Fan Token Offerings.^[7] Every team operating on the Socios.com platform runs their own semi-autonomous organizations, implementing rules to poll FanToken holders about every team-related decision. These semi-autonomous organizations consist of smart contracts executed on the Socios.com side blockchain, guaranteeing integrity by ensuring that only Fan Token holders can participate and therefore influence it proportionally to the number of Fan Tokens they own.

In December 2020, Chiliz and Socios.com held 6 Fan Token Offerings over 6 days beginning on December 9. The FTOs were held for Sint-Truidense V.V. (STV), İstanbul Başakşehir F.K. (IBFK), Team Alliance (ALL), Natus Vincere (NAVI), BSC Young Boys (YBO), and Novara Calcio (NOV). ^[8]

In December 2020, Chiliz announced a partnership with Binance. The first milestone of the partnership was Fan Tokens allocation through Binance Launchpool. With Binance Launchpool, users are able to acquire new token rewards in return for staking different tokens. The first Socios.com partners to benefit from Binance LaunchPool were Paris Saint-Germain F.C. (PSG) and Juventus F.C. (JUV) Fan Tokens. Users became able to stake BNB, BUSD, or CHZ tokens into separate pools.^[9]

On January 18, 2021, Chiliz partnered with A.C. Milan to launch the ACM Fan Token on Socios.com. ACM Fan Token owners will be able to access a wide range of benefits including the right to vote in multiple club decisions each season, VIP rewards and experiences, exclusive club and sponsor promotions, games, competitions, and ‘super-fan’ recognition. The club joined a list of 19 major sporting organizations that have already partnered with Socios.com to launch Fan Tokens.^[10]

Features

Chiliz (CHZ), the world’s leading Blockchain Fintech provider for sports and entertainment, was developed the Socios.com sports fan engagement platform which is built on the Chiliz Blockchain infrastructure and utilizes as its exclusive on-platform currency. this ecosystem has the following key features as embedded along-side the Chiliz' (CHZ) token utility:

Voting:

Voting is a basic feature that is characteristically All sports and esports teams- independent or league-tied - operating in the Socios.com platform will debut with a specified, finite number of Fan Tokens tied to concrete voting rights. Fans who obtain voting rights by trading Chiliz tokens for Fan Tokens, gain decision-making right for that team. Each vote is executed as a group of smart contracts, wherein fans leverage their ownership of Fan Tokens to ‘send’ them to various answers in a given pole. Once a certain engagement threshold is met, all voting results become valid, with all votes and vote results stored in Socios.com’s side blockchain for transparency.

Fan Token Offerings

Fan Token Offerings is a democratic solution for fans to purchase first-offer Fan Tokens from newly introduced organizations on Socios.com. When a new organization goes live on Socios.com, their supply of Fan Tokens is offered for purchase by fans on a first-come, first-served basis as a fixed price point. Only after Fan Tokens are in the hands of fans, can they be listed or re-listed on Socios.com’s shared marketplace. This fixed-price ‘order line’ is in place to ensure that the first chance to purchase any given Fan Tokens is a transparent and fair experience for users.

Together with Socios.com, each new team on-boarded to the platform decides on an initial Chiliz-pegged value for their Fan Tokens. This is a fixed, base price (in $CHZ) at which all fans can publicly purchase specific Fan Tokens on its first release. Buying accessibility for these first-run Fan Tokens functions as a virtual line. Fans pre-order a set amount of tokens before release, with orders fulfilled in the order in which they’re placed. Fan Token Offerings run under volume consideration as well. This means that a single user has a capped amount of Fan Tokens which they can pre-order for any team. This may fluctuate on an organization-by-organization basis, but the end goal of capping remains the same - to ensure that no single user is able to buy up a monopoly of Fan Tokens. These users by user caps for ownership are maintained even after a new organization’s Fan Token Offering period expires and their Fan Tokens go live on the Socios.com marketplace.

Trading Fan Tokens

Fans who own one or more Fan Tokens on Socios.com gain access to the Socios.com marketplace. Here fans can auction off the voting rights (Fan Tokens) they hold. This gamified system allows users to leverage their positions to exchange Fan Tokens for Chiliz (CHZ) at dynamic rates. Simply put, the platform's users are permitted to list their Fan Tokens at any price they wish - for example, a user can auction 20 Chiliz (CHZ) for a specific Fan Token.

Although this does guarantee that those tokens would be sold. Logically, for any given team’s marketplace, only the cheapest Fan Token price is visible to buyers. Once that token is purchased, the next cheapest price becomes visible and acts a that Fan Token’s current public value. Each Fan Token price points in the Socios.com shared marketplace is updated in real-time, so where and when users decide to buy or sell Fan Tokens becomes a strategic consideration - similarly to a normal market or exchange.

Tokenomics

CHZ Token

The Chiliz (CHZ) token is used by fans to acquire branded Fan Tokens from any team or organization that partnered with the Socios.com platform and enact their voting rights as their fan influencers.  CHZ is both an ERC-20 utility token on the Ethereum blockchain and BEP-2 token on Binance Smart Chain. ^[11]

CHZ is listed on Binance, coinone, BitMax.io, KuCoin, WazirX, Binance DEX, Bitfinex, Bitpanda, Crypto.com, and Bitnovo. ^[11]

Token Distribution

Chiliz (CHZ) token is thus allocated:

Fan Token

A Fan Token is a digital asset that is a user's license to vote in club decisions on the Socios.com app. Chiliz partnered with the following sports/esports teams that launched their Fan Tokens: Paris Saint-Germain F.C. (PSG), Juventus F.C. (JUV), West Ham United F.C. (WHU), OG (OG), A.S. Roma (ASR), Atlético Madrid (ATM) and Galatasaray S.K. (GAL). Each of these Fan Tokens is launched in a Fan Token Offering on the Socios.com app before being available on the Chiliz exchange. ^[12]

When a new organization goes live on Socios.com, their supply of Fan Tokens is offered for purchase by fans on a first-come, first -served basis as a fixed price point.

Company

Chiliz (CHZ) is the digital currency of Socios.com, which is a global sports and entertainment organization. Chiliz (CHZ), interchangeably known as Socios.com, was founded on the 1st of January 2012 to be a tokenized Voice Platform empowering fans to crowd-manage sports & esports organizations. Chiliz (CHZ), headquartered in Chicago metropolitan area, Great Lakes, Midwestern United States, is a sub-organization to Mediarex Sports & Entertainment- a sports marketing agency that develops sports formatted Poker competitions for its clients located in Malta, Illinois, United States.

Founders & Team

Founders

Alexandre Dreyfus is the founder and CEO of both Chiliz and Socios.com. His professional portfolio includes numerous CEO positions. Dreyfus had always had an interest in sports and games. He founded Webcity, a city tour-guide platform used across Europe, and has actively played a founding role in the creation of Winamax, the first-ever French online poker platform. Alexandre Dreyfus graduated from Lycée Jean Pierre Perrin in 1995.

Emma Diskin is the chief operating officer at Chiliz. She has been with the company since 2018 and has moved up the ranks, starting with a communications director position. Her professional career began as an account manager for Freud Communications in 1999. Since then, she has been an employee for brands like the Daily Mail and ITV, before joining Chiliz and Socios.com.

Max Rabinovitch is the Chief strategy officer for Chilliz and Socios.com. He graduated in fine arts and psychology from the University of Colorado Boulder in 2008. Rabinovitch’s professional experience began as a head Copywriter for Intersog in 2010. A year later, he became the creative director for ComboApp Inc and from 2014, Rabinovitch has been an integral part of the Chiliz team.

Team

Chiliz (CHZ) team has an atmosphere that breeds much brain-power, by the coming together of its expert and exquisite team members, whose consistently logical and solution-giving input constitutes Socios.com as the driving vibe within Socios.com's ecosystem. The core member of Chiliz (CHZ) is a nine-man team, consisting of Alexandre Dreyfus, the Chief executive officer, and other eight astounding members. Chiliz (CHZ) team aside from its core members, runs on the strength of its over 75 cross-industry professionals, cutting across 25 different nationalities, and this team size is constantly growing. The Chiliz' Core team includes:

As of today 18th March 2021, Chiliz is 80+ team members strong, across 29 different nationalities. Together with its Malta Headquarter, Chiliz runs a development office in Lyon, France, and has active operations in Turkey, Spain (Country), South Korea, and Brazil, with team members also active in the UK and Sweden.

Fundraising

In 2018, Chiliz raised $66 million USD through a private placement which was used to build the world’s first fan engagement and rewards app,Socios.com. ^[13]

Chiliz Exchange

Chiliz (CHZ) Exchange is a functional unit of the Chiliz' ecosystem, that supports cryptocurrency trading with a special emphasis on Fan tokens-football team tokens, and other renowned cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The exchange platform supports trading with about 8 other languages aside from English supporting its trading feature. Users can make use of the Trading View Cryptocurrency chart as made available within the exchange, thus giving room for users to technically analyze the market aside from their respective Fundamental analysis before placing a trade. Conventional with other cryptocurrency exchanges, Chiliz Exchange, having a relatable User interface, with its parts sectionalized into order books- order history, trade history; the ability for users to set Limit orders, and of course to execute trades using a market order. The Chiliz Exchange can thus be described as the specialized and first tokenized Cryptocurrency Exchange for Sports and Entertainment globally.

Chiliz Technology

Chiliz' technological ethos rests upon transparency and audit-ability at its core. The Socios.com ecosystem's commitments, powered by its Chiliz (CHZ) native token, aims to raise the interest of both future users of the Socios.com platform and the partner organization of Chiliz' technology as the currency and platform that acts together as a decision-making engine of the fans, giving them a way to meaningfully influence their favorite teams with complete integrity.

To ensure integrity, Chiliz runs its own permission-instance of the Ethereum Blockchain. This permissioned-sidechain is the core of Socios.com. It hosts every team, league, game title, or other organization that connects with the platform, together with each organization’s crowd voting mechanisms run as a Semiautonomous organization on this blockchain. Running its own permissioned-sidechain was aimed at drastically reducing transaction costs by employing the ecosystem's use of a Proof-of-authority (PoA) consensus algorithm to confirm each new block of the permissioned chain - with each block storing polling/ decision results, in place of necessitating the use of the conventional Proof-of-work system (PoW). Other than being a scalability solution, Chiliz (CHZ) Tech system also imbibes transparency as Socios.com’s Proof-of-Authority (PoA) sidechain will be publicly auditable.

For Chiliz (CHZ), Blockchain was the most practical and eloquent way to unite the needs of maintaining voting integrity and transparency by turning voting rights into an ‘ownable’ commodity. By having organizations on the Chiliz' permissioned chain-  connected to the Ethereum (ETH) Main Net via tokens exchangeable with our CHZ$ ERC20 token. The ecosystem explains that:

we are able to create a direct ‘fan-funding’ solution for sports/ esports teams in the future, in addition to being able to tokenize the management arms of these organisations.

Consensus Mechanism

Chiliz (CHZ) employs the Ethereum blockchain consensus, which primarily functions on the Proof-of-authority (POA) mechanism. Proof-of-Authority (POA) is a replacement for Proof-of-work, which can be used for permissioned chain setups. POA does not depend on nodes solving arbitrarily difficult mathematical problems but instead uses a set of ‘authorities’ - nodes that are explicitly allowed to create new blocks and secure the blockchain. The chain had to be signed off by the majority of authorities, in which case it becomes a part of the permanent record.

Permissioned sidechain

One important emphasis about Chiliz' technology as launched atop the Ethereum (ETH) Blockchain, brings virtually everything occurring on the Socios.com platform (in terms of voting and trading) to be stored in an auditable, permanent manner via public distributed ledger on Chiliz's permissioned blockchain. The Chiliz' network employs this Permissioned Sidechain because the ecosystem believes that in the spirit of Open-source development, having found inspiration from innovations created by open-source communities for almost two decades. Chiliz believes that Ethereum (ETH) offers a complete toolkit for developers to build Apps, Smart Contracts, and other Blockchain-based solutions. Ethereum and Solidity - its smart contract scripting language is supported by a very well-established and active community

Ethereum blockchain

Chiliz (CHZ) ecosystem, utilizing the Ethereum (ETH) Blockchain, ensures the securing and storage of the Chiliz' ERC-20 transactions. The new accruement of Fan Tokens converted from Chiliz ($CHZ) tokens and Socios.com account balance exchanges as part of the platform's other service features- is to be stored in an auditable, permanent manner via public ledger on the main Ethereum blockchain.

Chiliz Ecosystem

Socios.com is a bonded (CHZ) cryptocurrency-powered networking platform, that is interconnected with its tentacles ranging from ESports teams to influencers. The following are key units of the Chiliz' ecosystem. Socios.com is an ecosystem that generates a supply of Fan tokens, fully fungible assets that give users the right to vote on matters of every club that joins the ecosystem.

Socios.com App

This is the platform's mobile application that encourages Chiliz (CHZ) token users to freely buy and sell Fan tokens (which are fungible assets)- implying that they can be exchanged or traded freely against $CHZ tokens both on Socios.com marketplace and off-platform on any other Fan token exchange provider that is approved to operate on the Chiliz' blockchain since all Fan tokens exist on the Chiliz Chain. This mobile application can be downloaded using Android and/or on iOS using App store.

Blockchain Technology

Chiliz's mobile application, Socios.com App utilizes the powerful Chiliz blockchain as a foundation for its app. A user's Fan Tokens and the votes which are executed will be forever logged on this blockchain and 100% irrevocable.

Data Privacy

Although Chiliz obtains its user's data, yet these (data) are collected simply for the purposes of its user's verification (KYC) only. The platform's Five-user-verification levels are based on the user's activity on the application, which means personal information supplied is only ever used to verify the user's identity, nothing more.

Verified Payment Providers

Socios.com has partnered with popular and trusted payment providers to administer secure payment services, enabling fast and secure payment transactions for its students and all potential assets.

Brands & Events

Brands and events explain how crowd influences engagement solutions through the use of Fan Tokenization for forward-thinking brands & sporting events.

Football Teams & Influencers

Within the Chiliz' ecosystem, Fan-led decision-making and club gives influence for teams including PSG & Juventus F.C.. Also, Fan-led influence and guidance is done directly between fans and streamers/ personalities. Tokenized voting rights in

Chiliz Blockchain Campus (CBC)

The Chiliz Blockchain Campus is an accelerator and industry hub connecting some of the industry’s largest stakeholders across Asia and Europe, together with other emerging blockchain entrepreneurs.

Functioning as the gateway between Asia and Europe in the Blockchain and ecosystem, Blockchain Campus is 100% privately held by Chiliz and located on-site in Malta.

Known as “The Blockchain Island”, this small European Union (EU) nation is a leader in the adoption of a government-level framework to regulate blockchain enterprises and the financial dynamics which underpin them within Europe.

The Chiliz' Blockchain Campus has the following as its detailed features, which not just characteristically assures the grooming of entrepreneurs investing in Malta’s ecosystem, but also provides regulatory security while a global network of partnerships focused across Europe & Asia ensure that Campus members can access opportunities in the greater crypto ecosystem without leaving its business hub.

Features of CBC

Partnerships

Chiliz (CHZ) has entered into strategic partnerships with big-time Football teams such as Paris Saint-Germain F.C., Juventus F.C., OG, A.S. Roma, Atlético Madrid, Galatasaray S.K., Club Atlético Independiente, FC Barcelona, Team Heretics, UFC, Apollon Limassol, Trabzonspor, Young Boys, Sint-Truidense V.V., PFL, Novara Calcio, NAVI, İstanbul Başakşehir F.K., Team Alliance, Club Universidad de Chile, and A.C. Milan who have hundreds of millions of fans worldwide, with more clubs and teams to be made known over time.

UEFA

In February 2022, the Union of European Football Associations, typically known as UEFA, signed a Global Licensing and Regional Sponsorship agreement with Socios.com.  Socios.com has now become not only a Global Licensing Partner and the Official Licensed Product but also the Official Fan Token Partner of all UEFA competitions, which include majors like the Champions League, UEFA Europa League, UEFA Europa Conference League, and UEFA Super Cup. In addition, Socios.com is also working as a Regional Sponsor of the UEFA Champions League and the UEFA Super Cup for the 2021–2024 cycle in the USA.^[17][18][19]

Ballon d'Or

Chilliz powered Socios.com partnered with the prestigious annual football awards ceremony, Ballon d'Or, in November 2021. This award ceremony is the main individual award ceremony in soccer and has a history of 66 years. In September 2022, they were announced again as official partners for a second consecutive year.^14][15][16]

Security Audits

Chiliz' ecosystem has been declared passed, after its audit and has obtained its Certificate of authenticity, from CertiK in accordance with the conclusive report issued on November 22, 2018. Though in the light of this, users are yet advised to tread cautiously since this involves digital currency.