PSG, the French football club, has announced its intention to become a network validator for the Chiliz Chain blockchain, which hosts the PSG fan token. The club will use its revenue from validating transactions to buy back its fan tokens regularly, creating a sustainable digital economy for its fans.
French football team Paris Saint-Germain (PSG) has announced plans to become a network validator for the Chiliz Chain blockchain, which hosts the PSG fan token, and use the money it generates to buy them back regularly.
Validators play a critical role in managing blockchain networks. They ensure security by verifying transactions and authorizing smart contracts, managing the blockchain, and ensuring that it operates as designed. In return for providing this role, they are rewarded with cryptocurrency in the form of block rewards, earning the validator revenue.
PSG is the first sports club to join the Chiliz Chain as a validator, marking a significant milestone for the crypto industry. The club will use its own servers and hardware to run a node on the Chiliz Chain, contributing to the network’s decentralization and performance.
PSG Buys Back Fan Tokens with Validator Revenue
PSG introduced its fan token in September 2018 in partnership with Chiliz, the leading platform for sports and entertainment fan tokens. Fan tokens are digital assets that allow fans to access exclusive benefits, such as voting rights, rewards, and experiences related to their favorite clubs or celebrities.
Through a buy-back program, PSG aims to replenish its fan token reserves regularly, fostering a sustainable digital economy around them, as stated by Chiliz. The club will use the revenue it earns from validating transactions on the Chiliz Chain to buy back its fan tokens from the market, creating a constant demand and reducing the supply.
Pär Helgosson, Paris Saint-Germain’s head of Web3, expressed the club’s commitment to optimizing future engagements for network effects, enhancing the value and revenue potential within this evolving digital economy. He said that the club wants to offer its fans the best possible experience and interaction with the club and that becoming a validator and buying back fan tokens is a way to achieve that.
PSG Collaborates with Chiliz for a Hackathon Event
Furthermore, Paris Saint-Germain announced its collaboration with Chiliz to host a hackathon event at its Parc Des Princes in the coming months, underscoring its proactive approach towards embracing blockchain technology.
The hackathon will invite developers, designers, and entrepreneurs to create innovative solutions for the fan token ecosystem using the Chiliz Chain and the Socios.com app.
The hackathon will also feature workshops, mentorship, networking opportunities, and prizes and rewards for the best projects. The event aims to foster innovation and creativity in the crypto space, as well as to showcase the potential of fan tokens and blockchain for the sports and entertainment industry.
PSG and Chiliz Tokens See Price Increase
At the time of writing, the PSG token was up 5% to $3.65; however, the news did send it to a local high of $3.81. Despite this recent pump, the token is still down 93.7% from its all-time high of $58.79, which was reached in April 2021.
The Chiliz token has witnessed a similar pump over the past day. At the time of writing, it is up 7.7% at $0.1307. The token also has some way to go to reach its all-time high. At present, it is down 85% from its May 2021 peak of $0.8786.
The price increase of both tokens reflects the positive sentiment and interest generated by the news of PSG becoming a Chiliz Chain validator and buying back fan tokens.
The news also demonstrates the growing adoption and integration of crypto and blockchain in the sports and entertainment sector, as well as the increasing involvement and engagement of fans in the digital economy.
