Paris Saint-Germain will launch the chain of Chiles as a new blockchain validator Web3

French football giant Paris Saint-Germain (PSG) is set to strengthen its involvement with Web3 and SportFi as a fan token validator.

Cointelegraph recently traveled to Paris to talk with Chiles founder Alexander Dreyfuss and PSG head of Web3 Pär Helgosson about the dynamic partnership between the football club and the blockchain platform.

PSG is the first major football club to become a blockchain protocol validator and is set to reinvest the revenue it generates as proof of purchase of PSG tokens. The move is said to be a way to create a self-sustaining digital economy for the club and its fans.

The Chiliz Chain is the infrastructure behind Socios that issues and manages fan tokens for over 150 professional football clubs and sports teams. PSG is an early adopter of the technology and launched a fan token at Chiles in September 2018.

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The club intends to explore opportunities in the broader cryptocurrency, Web3 and SportFi spaces with Helgosson leading the effort.

Venture capital firm Animoca Brands has joined Chiliz Chain as a validator of its share verification protocol in November 2023 after Chiliz improved its Tokinomics model. Chiles has introduced EIP-1559, a new inflation-creating reward mechanism and transaction payment protocol burning mechanism for CHZ holders.

PSG fired first with a token return tactic.

Helgosen told Cointelegraph that PSG will use its accumulated revenue as a cross-validator to make purchases from public marketplaces for PSG supporters' tokens. The returns are automated by smart contracts and executed by the verifier and decentralized exchanges on the blockchain.

The program aims to increase the income from the club's authenticator through gas fees and supply inflation, which is returned to PSG tokens. The club is interested in renewing its token stock to create a self-sustaining economy:

We are aiming to co-build a sustainable Tokinomics model where the club will use the profits from our role as a node validator to reinvest back into the supporting ecosystem by purchasing backer tokens.

According to Helgosen, the move is expected to provide rewards, new facilities, functions, products and services for the benefit of PSG tokenholders, sponsors and players.

PSG and Chile are planning a blockchain hackathon to be hosted at the club's famous Parc des Princes stadium this summer. The event aims to attract developers to build decentralized applications and products that include PSG tokens on the blockchain.

Option for sports organizations

Dreyfus told Cointelegraph that PSG's move to become certified could be a reason for other clubs to follow suit and better understand how the ecosystem Tokenomics works.

“Regarding the drag card, PSG plays an active role in the Chilean ecosystem, which means they help build trust and attract more brands and developers, as well as hosting hackathons with us at their stadium,” said Dreyfus.

Chiles and Socios are focused on building products and experiences for the broader sports industry. Dreyfus believes that the protocol needs stakeholders from the field to be involved in its governance and ongoing activities.

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Chiliz's founder says his long-term goal is to acquire dozens to hundreds of validators, which include sports organizations, fan-owned nodes and cryptocurrency organizations. The hope is that PSG's move will prompt other big clubs to consider becoming hub operators.

“This is a new source of income for them, diversity, but being part of the network effect gives value to everyone.”

PSG Web3 game

Off-the-record conversations with Helgosson reveal that PSG is actively exploring multiple ways to diversify revenues and offerings in the cryptocurrency and blockchain ecosystem.

The club's investment to become an infrastructure operator for Chile's blockchain marks its move to actively participate in the Web3 ecosystem. PSG has researched and launched several sets of Invincible tokens, some of which offer special rewards to holders.

Related: Animoca Eyes SportFi Ecosystem, Chiliz Chain Will Be Validator

Helgosen would not disclose details of the investment or capital allocation for the Chiles Node-as-a-Service partnership, but said the club intends to actively engage and reinvest with its Web3 partners.

For the Paris Saint-Germain Fan Token Ecosystem and Chiles, he points out that cross-validation is an integral part of building a sustainable tokennomics model.

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