What Is Chiliz?
Chiliz, the platform that powers Socios.com, provides sports and esports fans with the option to crowd-manage their favorite teams, games, leagues, and events. It is expected that the sports and esports landscape to be determined not just by the games, teams, and leagues that attract the largest audiences, but also by the organizations who can most successfully engage and monetise that audience by placing their fan-base in the driving seat of the business. It’s referred to as “radical fan engagement”
A universal sports and esports ‘crowd-control’ engine capable of granting fans voting rights to steer the management and strategy choices of some of their favorite teams in a variety of sports and esports. Any league, any club, and any game may be made possible via the use of blockchain technology. As a result of Chiliz’s involvement in the Socios.com platform, supporters may exert influence on any competitive entity. In turn, teams, leagues, and events from every part of the sports and esports worlds may monetize the fan demand for these voting rights, allowing them to thrive financially.
The Reason why Chiliz And Socios Were Developed
Chiliz’ motivation is to to transform the billions of sports, esports, and gaming enthusiasts across the globe from spectators to influencers.
Chiliz tokens will be used to power the Socios platform, which aims to transform the 2.2 billion gamers and 380 million fans of esports, as well as the billion-strong community of football supporters, from spectators into team-connected influencers and decision makers.
The global sports market has continued to expand year after year, and the esports business in particular is predicted to increase at a rate of 32 percent each year over the next 2-3 years, according to industry analysts.
Fans’ involvement in sports and esports is being researched to see if it can be improved. In both verticals, however, monetizing fans via direct team interaction – outside of game broadcasts and live events – continues to be a difficulty.
As part of their vision, cryptocurrency and blockchain-based fan networks will be used to empower active fans in sports and esports, as well as to turn them from passive spectators into active influencers who will help steer the teams and organizations that they are passionate about.
The Gap That Chiliz Tries To Cover
Fans are only permitted to observe. They are unable to make judgments or exert influence on the organizations that they support.
Currently, the sports and esports environments provide fans with just transactional ‘contact’, which is a significant limitation. They spend money on branded merchandise and enjoy seeing their favorite teams participate in their favorite sports. Although this is a passive endeavor, since fans have little power over the clubs or players of their choice, it is nevertheless worthwhile. While there is a desire to ‘activate’ fans as influencers, current investigation into direct fan interaction, such as the ‘Fan Voice’ aspect of Formula One or the digital FanBoost involvement of Formula E, has not moved beyond the realm of novelty.
It has traditionally meant that, unless you start your own team, there are essentially no processes in place for influencing team choices and no means to make the leap from being a spectator to being an active player in the sport.
The great majority of sports organizations do not have the financial resources to make a direct investment in a certain club in order to have this voice. Even if it were possible, the obstacles to entrance for the typical sports fan — time, money, and the capacity to identify and recruit talent – are enormous, to the point of being insurmountably high.
Why Chiliz and Socios is an Innovation
Powered by the Chiliz token, the Socios.com platform serves as a team crowd-management system, allowing fans to have a meaningful and active role in guiding various decision-making and influencer events for their favorite professional sports and esports teams. The Chiliz token is used to power the Socios.com platform. Specifically, this is made possible through the novel application of a scalable, blockchain-based Fan Token purchasing and utility infrastructure; this is brought to life through the secure, trustless deployment of tokenized voting rights; and this is executed via smart contracts executed on the Socios.com platform.
With the help of Chiliz, our blockchain technology transforms team management into an entertainment offer in and of itself, gamifying voting rights and transforming them into a trading and re-trading experience. Every fan’s vote choice will have a direct impact on real-world sports and esports teams, as well as any other organizations with whom they have associated. Socios.com’s fancontrolled teams can compete in both existing sports and esports infrastructures – competing independently in conventional events such as the Premier League, La Liga, and other similar competitions for football, or Dreamhack, ESL, and other similar competitions for esports (for the purposes of illustration only) – as well as in new emerging sports entertainment environments.
Bringing Democracy To Fans – Chiliz Features
Voting rights for fans are given to them through smart contract executions that use the Fan Token.
The Socios.com platform has team-specific engines that are used to run every decision.
Fan Tokens will be distributed to all teams on the Socios.com platform, whether they are independent or league-affiliated, before the start of the season.
Fan Tokens will be attached to specific voting rights. It is possible for fans to get voting rights for their favorite team by exchanging Chiliz tokens for Fan Tokens. Each vote is conducted as a collection of smart contracts, in which fans may use their Fan Tokens to’send’ them to different replies in a particular pole by leveraging their ownership of Fan Tokens in the process.
Once a specific level of involvement has been reached, all voting results are considered genuine, and all votes and vote outcomes are saved in the Socios.com blockchain for the purpose of maintaining accountability.
Maintaining the Integrity of Team Management
Every team that uses the Socios.com platform will operate their own semi-autonomous organizations, with democratic procedures that will allow FanToken holders to vote on every team-related decision. Socios.com is a semi-autonomous platform that allows teams to create semi-autonomous organizations.
Each of these semi-autonomous organizations is comprised of smart contracts that are executed on the Socios.com side blockchain, which ensures integrity by ensuring that only Fan Token holders are permitted to participate and, as a result, influence it in proportion to the number of Fan Tokens they possess.
As a consequence of the public auditability of blockchain-managed votes, neither the Socios.com platform nor the organizations fueled by it will be able to manipulate voting results or disregard fan crowd-guidance.
Fan Token Offerings
Fans can buy Fan Tokens from a new organization on Socios.com at a fixed price when the organization goes live. Fan Tokens can only be sold or resold on Socios.com’s shared marketplace when they are in the hands of people who love the show. This fixed-price “order line” is in place to make sure that the first chance to buy any given Fan Tokens is fair and transparent for users.
How can someone buy Fan Tokens?
On Socios.com, each new team that joins the platform agrees on a value for their Fan Tokens that is based on Chiliz. This is the price (in $CHZ) at which all fans can buy specific Fan Tokens when they first come out.
When you buy access to these first-run Fan Tokens, you’re in a “virtual line.” Fans order a certain number of tokens before the game comes out, and the orders are filled in the order that they were placed.
The volume of Fan Token Offerings is also taken into account.This means that only one person can buy Fan Tokens for any team. This may change from organization to organization, but the goal of capping is always the same: to make sure that no single person can buy up a monopoly of Fan Tokens.
Even after a new organization’s Fan Token Offering period ends and their Fan Tokens go live on the Socios.com marketplace, these caps on how many people can own them stay in place.
Fan Tokens can also be Sold
Members of the Socios.com community who have ownership of one or more Fan Tokens will be able to access the Socios.com marketplace. Fans may use this site to sell off the voting rights (Fan Tokens) that they have accrued. With this dynamic, gamified system, users may take advantage of their ownership positions in order to swap Fan Tokens for Chiliz at variable exchange rates. What this implies is that:
Users are allowed to advertise their Fan Tokens for sale at whatever price they like – for example, 20 Chiliz for a certain Fan Token – but there is no assurance that they will be purchased at that price. Buyers may only see the Fan Token pricing for a certain team’s marketplace if it is the lowest available. Once a Fan Token is bought, the next lowest price becomes revealed and serves as the Fan Token’s current public value for the remainder of the transaction.
Due to the fact that each Fan Token price point in the Socios.com shared marketplace is updated in real-time, the location and timing of when users elect to purchase or sell Fan Tokens becomes a strategic element, akin to a traditional market or exchange.
Those who sell their Fan Tokens may utilize the Chiliz they have earned to diversify their Fan Token holdings between teams or other organizations, or to continue to expand their voting stewardship within a single team, depending on the situation.
Creating a Gamified Economy and Business Model: The Socios.com marketplace assures that Chiliz tokens have real-world value and use. Trading voting rights in a fan’s favorite teams in a sub setting turns the acquisition of voting rights into a meta-game in and of itself. Trading micro-fees collected by the platform also serve as a sustainable business model for the Socios.com platform as a whole, generating revenue for the company.
The Moral Values of Chiliz and Socios
Clearly stated are chiliz’ pledges to both future users of the Socios.com platform and the organizations that will be funded by the Chiliz token:
Chiliz wants to be the currency and platform that fans utilize to make decisions about their favorite teams, providing them with a method to significantly impact the decisions of their favorite teams while maintaining total transparency.
The following objectives are set for chiliz’ partner organizations: to produce and share income earned via the Socios.com platform in a fair and transparent manner
Trust in chiliz’ currency, as well as the platforms and products it is used to power, is important – both for chiliz’ users and for chiliz’ partners. However, Chiliz recognizes that trust alone is not sufficient when it comes to ensuring that voting rights are exercised fairly and that revenue is accurately accounted for. Blockchain, as a technology basis, is the de-facto solution for doing this in an elegant way.
Chiliz operates its own permissioned instance of the Ethereum blockchain in order to maintain its integrity. The permissioned sidechain at the heart of Socios.com is the foundation of the platform. On this blockchain, it holds every team, league, game title, and other organization that links with the platform, as well as the audience voting methods for each organization. Each organization is administered as a Semiautonomous organization on this blockchain.
By using a Proof of Authority (PoA) consensus algorithm to confirm each new block of the permissioned chain – with each block storing polling/decision results – instead of having to use a Proof of Work (PoW) consensus algorithm, running chiliz’ own permissioned sidechain will significantly reduce transaction costs. Aside from serving as a scalability solution, this system will also provide transparency, since Socios.com’s PoA sidechain will be open to the public for audit.
Every transaction that takes place on the Socios.com platform, including voting and trade, is recorded in an auditable and permanent way on chiliz’ permissioned blockchain, which is accessible to anybody who has access to it.
On the main Ethereum blockchain: Everything that occurs on the Socios.com platform in terms of chilliZ ERC20 transactions – new accrual of Fan Tokens converted from Chiliz ($CHZ) tokens and Socios.com account balance exchanges as part of the platform’s other service features – will be stored in an auditable, permanent manner via public ledger on the main Ethereum blockchain in order to ensure that the platform’s other service features are not interrupted.
Socios’ Oracle to the Ethereum Sidechain
When it comes to linking chiliz’ permissioned sidechain to the main Ethereum blockchain, the Socios.com platform will function as an oracle:
Chiliz ($CHZ) Tokens will be issued on the main Ethereum blockchain, whilst partner-specific Fan Tokens will be issued on chiliz’ permissioned sidechain, which will be accessible only to authorized users. Thus, on a functional level, the Socios.com platform itself acts as the only bridge that allows the exchange of Chiliz tokens for Fan Tokens (and vice versa) to take place.
The public ledgers of the Socios.com platform, which jointly document a complete history of all platform-wide transactions, can be inspected by anybody, including the fans who have placed their faith in us to provide them with a genuine set of voting rights.
- In order to generate revenue from its user base of sports and esports enthusiasts, the Socios.com platform will levy a micro-fee on each transaction that takes place on the site. However, after a fan has bought Fan Tokens for their favorite team, league, and/or event, the process of voting and making choices as a fan will always be completely free.
All of the key transaction/trade points on the Socios. com platform will be charged fees, which will be collected in the form of either a very tiny proportion of the total amount of transactions or a defined percentage fee, depending on the service type:
2.Trading Fees in the Socios.com marketplace
All P2P transactions carried out on the Socios.com platform’s Socios.com marketplace – for fans purchasing and selling ownership of Fan Tokens for individual clubs, leagues, and events – will be subject to a micro-fee of 0.1% of the transaction value.
3.Service Fees for Sub-Features
For all socially and competitively oriented sub-features on the Socios.com platform – including potential entertainment elements such as Leaderboard Leagues, P2P Daily Challenges, and Digital Asset Trading – users will be subject to set provider fees, which will be announced in advance.