A TOKEN ECONOMY: HOW BLOCKCHAIN CAN WORK FOR THE FOOTBALL INDUSTRY

Tokenization is a term currently reserved for the crypto space, and yet it’s application — even its ambition — can be applied to virtually any industry where there is a transference of assets. Tokenization has already been embraced by myriad industries, from agriculture to photography, mainly because of the innovative and transparent nature of the technology, but it’s also important to understand that tokenization brings a revolutionary new model of investment and capital generation, providing a decentralized but soon-to-be regulated system for the propagation of funds.

Theoretically, a digital token can be used to represent a stake in any conceivable asset, with the benefits including lower transaction costs, improved liquidity as well as shared ownership models. With Socios.com, we have applied the method of tokenization to the football industry. In this case, tokenization represents an ecosystem whereby ownership of a token provides access to exclusive services, and token-holders are part of a network of owners with shared passions and beliefs. Socios.com will help their club partners to monetize their existing fan bases through a unique and innovative Fan Token Offering (FTO). Clubs will use the platform to further their fan engagement strategies, and the club-branded tokens will be made available for fans to purchase and/or trade through the Socios.com platform.

With several high-profile (yet-to-be-announced) football teams already signed, the Socios team will work alongside many of the world’s top football clubs to develop their blockchain offerings, as well as launching branded digital currencies. A football club will use Socios.com to further their fan engagement strategy, and to continue to build a global fan base, particularly in Asia, where fan communities are experiencing rapid growth. As part of the partnerships, clubs will provide fans with exclusive experiences, content and input on certain club decisions whilst maintaining its existing corporate ownership structure.

Through the mobile-first, globally accessible platform, fans are brought closer to the heart of the club. Ownership of a club’s token offers access to an elite fan status through a unique fan or loyalty programme that offers exclusive rewards, content and experiences, as well as the ability to vote on certain club decisions through a mobile voting platform.

Socios.com connects the football clubs to their fans, whilst empowering the clubs to secure an additional revenue stream from their domestic and international fan bases. This revenue stream is fully digital, secure and transparent and entirely connected to the real fan experience.

Socios.com is powered by the chiliZ fintech platform and the chiliZ token ($CHZ). $CHZ — an ERC20 utility token — serves as the digital currency for an encrypted ledger of voting rights ownership and will use the Ethereum blockchain. In order to obtain a club’s token, fans must first purchase chiliZ tokens through a cryptocurrency exchange.

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