- “Fan Token Play” will give fans all around the world unique exposure to team on-pitch performance via on-chain market dynamics.
- New dynamic supply mechanics to be rolled out over the coming months, with public trialling of prediction market-based supply management and protocol-level treasury governance mechanisms already underway.
LONDON, 09TH APRIL 2026:— The Chiliz Group, the world’s leading blockchain provider for the sports and entertainment industry, today announced the rollout of “Fan Token Play”—the next step in the growth of its industry-leading Fan Token asset class, directly tying team on-pitch performance to on-chain markets.
This milestone development culminates seven years of innovation in the Fan Token product category, now firmly established as the leading digital asset class in sports—delivering over $700M in income to partners, reaching peak market capitalizations of $1B+, and built across a global ecosystem consisting of 70+ partners.
At its core, Fan Token Play introduces “mint and burn” mechanisms in which Fan Tokens are minted in response to team losses and burned (removed from supply) in response to wins, shifting Fan Token supply from a static to dynamic model based on match results.
The new model reflects the continued progression of Fan Tokens as a truly unique digital asset; an asset that exhibits market dynamics often uncorrelated to broader crypto markets, driven instead by fan sentiment and team performance. Through combining real-world utility with a sentiment-driven marketplace for teams, the leading blockchain provider to the sports industry has laid the foundations for the next evolution of its class-leading Web3 infrastructure.
Fan Token Play will offer a refreshing new way for fans all around the world to connect with their clubs and acts as a utility upgrade to Chiliz’s existing Fan Token engagement and rewards proposition consisting of voting rights on club decisions, access to rewards including ticketing, merchandise and money-cant-buy experiences via its Socios.com fan engagement platform.
Prior to full-scale launch, Fan Token Play will undergo a series of public execution flow tests across live markets to illustrate the core mechanics underpinning the model, with the first trial taking place in this week’s Champions League fixture between Arsenal ($AFC) and Sporting Lisbon. Further trials will be conducted with new tokens and with existing tokens depending on the existing contracts and relationship agreements with partners and Fan Token holders.
At a foundational level, Fan Token Play is built on mint and burn tokenomics executed via smart contracts, forming the basis of a dynamic, performance-linked supply system. Building on this foundation, the public testing phase will also explore an additional mechanism leveraging prediction market infrastructure to execute match outcomes.
- Protocol-Level Treasury Governance
A dynamic supply model responding directly to game data. Each adjustment is determined algorithmically accounting for the binary result (Win/Loss).
After every competitive first-team match, supply adjusts automatically:
- WIN – Tokens are permanently burned, thus reducing total supply.
- LOSS – New tokens are minted, increasing supply.
- DRAW – Total supply remains unchanged.
All mint and burn supply changes are executed directly via treasury-controlled smart contracts. Future plans include integration of on-chain oracles to deliver verified match data directly tied to Chiliz Chain, ensuring a transparent, tamper-proof system.
To support the long-term balance and prevent extreme fluctuations, this model also includes:
- Minimum Supply Level: If total supply reaches a 75% net reduction or the treasury hits 0%, burning ceases.
- Credit Burns: Wins achieved while at the stop-loss limit generate “burn credits” that offset future minting requirements if the team loses.
- Vesting Cap: Where applicable, treasury tokens released into the market are capped at 12.5% of the current treasury balance per year.
Alongside match-based adjustments, a variable annual inflation rate linking to overall season performance of 1-5% is included—factoring in longer-term performance, keeping the token economy active and responsive throughout the year.
- Prediction Market-Based Supply Management
A gamified mint and burn system where token supply is actively adjusted on a match-by-match basis, with outcomes executed through on-chain prediction market infrastructure:
- Ahead of each match, 1/400 of a team’s Fan Token supply is pre-liquidated.
- Proceeds from pre-match sales are used to place “WIN” positions on behalf of the pre-liquidated token on third-party prediction markets.
- Following the match:
- If the team WINS: Proceeds from successful market positions will be used to buy back respective winning tokens directly from the secondary market. Following a 5% fee, the remaining 95% of win volume will be used in full to buy and burn the token.
- If the team LOSES: Tokens equivalent to the pre-liquidates amount are minted and returned to the treasury.
All market positions operate within strict 48-hour windows; liquidations occur within 48 hours of kickoff, and buybacks are executed within 48 hours of the final result—ensuring timely execution, while safeguarding against potential market manipulation.
Commenting on the rollout announcement, Founder & CEO of The Chiliz Group, Alexandre Dreyfus, said: “Fan Token Play represents the biggest evolution of our Fan Token model since the launch of our first tokens more than six years ago. It transforms passive support into something dynamic, interactive, and directly connected to performance on the pitch.
“By introducing real-time, on-chain mechanics and algorithmic supply adjustments, we’re bringing the emotional highs and lows of sport into the token economy—creating a system that is as responsive and unpredictable as the game itself, while setting a new benchmark for blockchain applications in sports and entertainment.”
Only official men’s first-team competitive matches will be subject to mint and burn procedures. Friendlies, pre-season games, exhibition matches, academy/women’s team matches will not form part of Fan Token Play.
About The Chiliz Group
The Chiliz Group is the leader in blockchain solutions for the sports and entertainment industry, pioneering the development of Fan Tokens, the leading digital asset for sports. Chiliz also powersSocios.com, which functions as a secure and intuitive hub where users can access exclusive experiences, rewards, and opportunities from top-tier sports organisations—including FC Barcelona, Paris Saint-Germain, Manchester City, Juventus, and Inter Milan—to strengthen the connection and loyalty between brands and fans. The Chiliz Chain provides a trusted, decentralised infrastructure for brands, developers, and communities to build the future of the Web3 ecosystem.
