Blockchain Innovation: PSG Leads with Validator Role on Chiliz Chain
Paris Saint-Germain (PSG), one of the globe’s most illustrious and forward-thinking football clubs, is leading a pioneering innovation initiative in the Chiliz blockchain and its collaboration with Socios.com, the club’s official Fan Token partner. As part of this alliance, the club will assume an active role on the Chiliz Chain as an official blockchain validator—an integral part of a blockchain network that aids in ensuring its security, precision, and reliability.
We're excited to announce that @PSG_inside is partnering up with Chiliz to become the first ever sports club validator of a blockchain. 🤝🌶️
Paris Saint-Germain commits to reinvesting all validator revenue into buying back $PSG Fan Tokens. ⚽#ChilizChain ⚡ $CHZ
— Chiliz ($CHZ) – The Sports Blockchain ⚽🏆 (@Chiliz) February 22, 2024
Innovation in Sports and Web3 Integration
This development marks the inaugural instance of a sports club becoming a validator on a blockchain, symbolising a crucial milestone in the adoption and evolution of the Chiliz Chain. It also highlights PSG‘s commitment to the significance of web3, showcasing its strategic investment in the future of digital products and experiences.
The selection of Chiliz as the platform for this advancement is motivated by its robust $1bn SportFi ecosystem, replete with crypto-native sports fans, its sophisticated infrastructure, and the variety of decentralised applications it supports. The Chiliz Chain has already emerged as a launching pad for over 50 web3 projects, demonstrating its robust infrastructure and ability to attract leading web3 products and services.
Core Roles and Innovation
Validators on the Chiliz Chain play a pivotal role in maintaining the network’s integrity, security, and operations. As participants in the blockchain’s consensus mechanism, they verify transactions, authorise intelligent contracts, and ensure the smooth operation of the chain. PSG’s involvement as a validator elevates its participation from mere token issuance to active participation and decision-making within the ecosystem.
PSG has been at the forefront of the Chiliz sports and entertainment ecosystem since it became the first club to partner with Chiliz to launch a Fan Token in September 2018. The club has led the web3 transformation in sports, setting a path that many top European clubs have since followed. PSG is also the first club to appoint a Head of Web3 (Pär Helgosson).
Fan Engagement Through Innovation
The PSG Fan Token is evolving into a cornerstone and gateway into PSG’s web3 ecosystem, designed to foster direct-to-fan relationships and engagement. This strategy will allow PSG to deliver unique experiences and products directly to its fanbase, generating significant digital revenue while allowing the fans ownership of digital assets and maintaining control of them.
PSG joins the Chiliz Chain as it has revamped and released its tokenomics model, including a new inflation staking rewards mechanism allowing CHZ token holders to receive rewards, a new transaction fee protocol burning scheme (EIP 1559) and new community-based incentives.
Sustainable Token Economy
PSG has committed to using 100% of its accrued revenue as a node validator on the Chiliz Chain to conduct regular $PSG Fan Token buybacks from the public marketplace. These automatbuybacksacks, executed via smart contracts by the valibuybacksthrough decentralised exchanges on the Chiliz Chain, are planned at set intervals to bolster the club’s digital economy consistently.
The buyback programme has a dual purpose: it ensures abuybackcant part of revenue from club validators, through gas fees and supply inflation, is reinvested into the PSG Fan Token supply. It also enables PSG to refresh its Fan Token reserves regularly. This approach allows PSG to build a self-sustainable Fan Token digital economy and engagement with its web3 fanbase.
Hackathons: A Venue for Innovation
PSG is also set to co-host, alongside Chiliz, its first-ever blockchain hackathon within the Parc Des Princes stadium towards the end of summer 2024. This initiative will gather French and international developers to innovate on new products leveraging web3, the Chiliz Chain, and PSG Fan Tokens. These hackathons highlight PSG’s dedication to innovation by fostering a connected, digitally savvy global fan community through the cutting-edge application of web3 technology.
Alex Dreyfus, CEO of Chiliz and Socios.com, remarked, “We’re thrilled to deepen our existing relationship with Paris Saint-Germain by welcoming them as an official validator on the Chiliz Chain. This evolution marks a significant milestone in adopting web3 by fans, clubs, and leagues. We’re confident this move will pave the way for other clubs to join us in this innovative journey. PSG’s active role as an official validator will propel our SportFi ecosystem to new areas, furthering our long-standing partnership with the club.”
Pär Helgosson, Head of Web3 at Paris Saint-Germain, added, “By becoming a validator on the Chiliz Chain, we’re not just embracing the future of web3 sports; we’re actively designing it to have a more direct relationship with our fans through web3 experiences. We will optimise our future engagements for network effects, amplifying the value and revenue each stakeholder can generate and experience within this new digital economy. Our commitment is to build a more empowered and sustainable web3 ecosystem, leveraging the solid foundation of our existing relationship with Socios and Chiliz. PSG is committed to fostering innovation, and the club will continue to develop opportunities with other partners in this space.”
Web3 and the Future of Football
This move by PSG represents a bold step into the future for the club and the entire sports industry, as they leverage blockchain technology to enhance fan engagement and establish a new model for the digital economy in sports.
Today, on the 22nd of February, the football world is in mourning following the passing of Artur Jorge at the age of 78, a revered figure known for his iconic moustache and strategic genius. His legacy spans a notable playing and coaching career that left a lasting impact on the sport. Jorge succeeded significantly as a player with Benfica and the Portuguese national team, securing multiple titles and accolades. His transition to coaching saw him lead Porto to a European Cup victory in 1987, showcasing his tactical expertise and passion for the game.
Jorge’s coaching journey included a memorable tenure at Paris Saint-Germain, where he guided the team to a French league title 1994, among other achievements. His career, characterised by a rigorous approach to the sport, took him across continents, from Europe to Africa and the Middle East, influencing clubs and national teams. Jorge’s contributions to PSG and the broader football community have cemented his legacy, ensuring his memory will endure in the hearts of fans and players worldwide.
