Stake CHZ

1. What Is Chiliz (CHZ)?

Chiliz is the leading digital currency for sports and entertainment by the eponymous Malta-based FinTech provider. It operates the blockchain-based sports entertainment platform Socios, which enables users to participate in the governance of their favorite sports brands. Multiple fan tokens by Socios.com are an example of that. For sports clubs and associations, fan tokens offer a way of connecting with their fans and unlocking new revenue streams. For instance, fans can participate and influence club-related decisions through surveys and polls, such as messages the captain should wear on his armband. The company aims to bridge the gap between being an active and a passive fan. Chiliz has developed partnerships with some of the biggest sporting institutions in the world: FC Barcelona, Manchester City, Juventus Turin, and Paris Saint-Germain. It also boasts partnerships with the UFC and gaming organizations. By purchasing CHZ, fans get access to various fan tokens and literally have a stake in their club.

2. Who Are the Founders of Chiliz (CHZ)?

Chiliz was founded by Alexandre Dreyfus, its current CEO. Dreyfus has over 20 years of experience founding and growing web-based companies. For instance, he developed Webcity, an interactive travel guide, and Winamax and Chilipoker, both online poker projects, before founding Chiliz in 2017. His explicit goal with the company is to “work harder than ever on our mission to fully establish Fan Tokens as the ultimate fan engagement tool and as a powerful new revenue generator for the sports industry.” This has been highlighted in the aggressive expansion of fan tokens that have seen numerous European football powerhouses, but also smaller clubs sign on.

3. What Makes Chiliz (CHZ) Unique?

Every sporting organization using the Chiliz technology has a limited supply of fan tokens that are offered at an initial FTO (fan token offering). These tokens are offered on a first-come-first-serve basis, with the opening price and fully diluted market cap disclosed by Chiliz beforehand. The native CHZ token is used to purchase fan tokens and acts as the platform’s internal currency. Fans can then vote on the Socios platform with their fan tokens, a process made possible using smart contracts. Clubs determine the amount of influence fans have. Decisions can range from new jersey designs to deciding team matchups in exhibition games. Chiliz pioneered direct participation for average sport fans in the decision-making process of clubs and organizations. The company is constantly creating new ways for fans to engage, with the establishment of the Chiliz Blockchain Campus, a privately-owned crypto incubator focused on accelerating blockchain technology adoption across Asia and Europe as an example. The company estimates to be at about 10% of its potential, despite the fact that it will likely have 80-100 teams as a part of its network by the end of 2021.

4. How Many Chiliz (CHZ) Coins Are There in Circulation?

The total supply of CHZ is 8.8 billion, minted at its launch in October 2018 and distributed to early contributors with no public sales beyond what was made available through exchanges. The token distribution is as follows: 15 % – Strategic Acquisitions 5% – Team 7% – Seed investors 3% – Advisory board 15% – Marketing 20% – Userbase reserve 34.5% – Token sale Initially, CHZ launched as ERC-20 token, but it was later also designed to be BEP-2 compatible, owning Binance Launchpool’s role in releasing fan tokens as part of a strategic partnership. CHZ is also available as TRC-20 token on the Tron blockchain.

5. How Is the Chiliz Network Secured?

CHZ is available on several blockchains, such as Ethereum, Binance Smart Chain and Tron. Fan tokens are minted on its Socios sidechain with a proprietary crowd control mechanism, so fans are in a protected environment and vote only in publicly audited polls. The sidechain uses a proof-of-authority consensus mechanism. Proof-of-authority is mostly used by private organizations that have closed blockchains and only users within its ecosystem participating. It is less decentralized than other consensus mechanisms but is easily scalable and highly secure, making it the ideal choice for a sidechain. The CHZ token has been audited by Certik.

6. When Will Chiliz Trading Begin?

Chiliz launched in October 2018 on the Ethereum mainnet.

7. Where Can You Buy Chiliz (CHZ)?

CHZ is available on Binance, Huobi, Coinbase and many other exchanges. Cryptocurrency newbie? You can read more about how to enter the market and how to buy CITY or any other token in the CoinMarketCap education portal — Alexandria.

8. Related Pages:

Check out Paris Saint-German Fan Token (PSG). Check out Manchester City Fan Token (CITY) Learn more about sports NFT platforms in our Ultimate Guide for Top NFT Sports Platforms. What are fan tokens? Learn more with CMC Alexandria. Get the latest crypto news and latest trading insights with the CoinMarketCap blog.

9. What is Blockchain?

Blockchain is a decentralized and distributed ledger technology that securely records transactions across multiple computers in a verifiable and permanent way. It forms the underlying technology for cryptocurrencies like Bitcoin and enables transparency, security, and immutability.

10. What is Cryptocurrency?

Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. It operates on decentralized networks, typically based on blockchain technology, and facilitates secure and transparent peer-to-peer transactions.

11. What is Bitcoin?

Bitcoin is the first and most well-known cryptocurrency, created in 2009 by an anonymous person or group known as Satoshi Nakamoto. It operates on a decentralized peer-to-peer network and is used for secure, transparent, and censorship-resistant transactions.

12. What is the difference between Bitcoin and Altcoins?

Bitcoin is the original and most widely recognized cryptocurrency, while altcoins refer to any other cryptocurrencies besides Bitcoin. Examples of altcoins include Ethereum, Ripple (XRP), Litecoin (LTC), and many others.

13. What is Staking?

Staking involves participants locking up a certain amount of cryptocurrency in a wallet to support the operations of a blockchain network. It is commonly associated with proof-of-stake (PoS) and delegated proof-of-stake (DPoS) consensus mechanisms, where participants receive rewards for helping secure the network.

14. How Can I Stake Cryptocurrency?

To stake cryptocurrency, you typically need to choose a platform or network that supports staking. Transfer your tokens to a compatible wallet, follow the staking instructions provided by the platform, and lock up the desired amount of cryptocurrency. Once staked, you may start earning rewards.

15. What Are Staking Rewards and How Are They Calculated?

Staking rewards are incentives provided to participants who lock up their cryptocurrency to support the network. The amount of rewards varies and is influenced by factors such as the network's inflation rate, the total amount staked, and the specific rules of the staking protocol.

16. Can I Unstake My Cryptocurrency at Any Time?

The ability to unstake and withdraw your cryptocurrency depends on the specific staking protocol and network. Some platforms may have lock-up periods or unbonding periods during which your staked tokens are inaccessible. Always check the terms and conditions of the staking service.

17. What are the Risks of Staking?

Staking comes with risks, including the potential loss of staked funds if a participant behaves maliciously or fails to fulfill their responsibilities. Market volatility can also impact the value of staked tokens. It's crucial to thoroughly research the staking protocol and understand the associated risks.

18. Can I Lose Money by Staking?

While staking is designed to be a rewarding activity, there is a risk of losing money, especially if the value of the staked cryptocurrency decreases or if the staking protocol encounters security issues. It's important to consider both the potential rewards and risks before participating in staking.