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Paris Saint-Germain (PSG) Embraces Web3: Becomes Validator for Chiliz Blockchain

French football powerhouse Paris Saint-Germain (PSG) is poised to expand its involvement in Web3 and SportFi by assuming the role of a validator for fan token blockchain Chiliz.

Cointelegraph recently journeyed to Paris for an exclusive discussion with Chiliz founder Alexandre Dreyfus and PSG’s head of Web3, Pär Helgosson, regarding the evolving collaboration between the football club and the blockchain platform.

PSG stands as the initial major football club to undertake the role of a blockchain protocol validator and plans to reinvest earnings derived from this position to repurchase PSG tokens.

This strategic manoeuvre is hailed as a means to establish a self-sustaining digital economy for the club and its fanbase.

The Chiliz Chain serves as the underlying framework for Socios, the platform responsible for issuing and managing fan tokens for over 150 professional football clubs and sports teams.

PSG embraced this technology early on and introduced its fan token on Chiliz back in September 2018.

The club aims to explore opportunities within the wider cryptocurrency, Web3, and SportFi realms, with Helgosson leading the initiative.

In November 2023, venture capital firm Animoca Brands joined Chiliz Chain as a validator for its proof-of-stake protocol, subsequent to Chiliz’s overhaul of its tokenomics model.

This revamp included the introduction of a new inflation-staking rewards mechanism for CHZ holders and the integration of the transaction fee protocol burning scheme EIP-1559.

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Helgosson informed Cointelegraph that PSG intends to employ its accumulated revenue as a node validator to conduct PSG fan token buybacks from public marketplaces.

These buybacks will be automated and executed through smart contracts via its validator and decentralized exchanges on the Chiliz Chain.

The initiative aims to augment revenue from the club’s validator through gas fees and supply inflation, which are then reinvested into PSG tokens.

The club seeks to replenish its token reserves to foster a self-sustaining economy:

“We’re aiming to build a sustainable tokenomics model together where the club, because of our role as a node validator, can use the profits to buy back fan tokens and use them to reinvest back into the fan ecosystem.”

Helgosson anticipates that this move will yield rewards, introduce new utilities, functions, products, and services beneficial to PSG tokenholders, sponsors, and players.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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