Photo by David H-C under Creative Commons 2.0, link- https://www.flickr.com/photos/davidhc/

On Monday, there was an official announcement about the partnership between Chiliz, the global blockchain provider in the sports and entertainment industry and European football team Arsenal to launch $AFC fan token in a fan token app Socios.com which is built on Chiliz. This new and innovative way will enable Arsenal fans around the world to stay connected to the club.

As per the report, the token will be launched soon although there is no declaration about the time frame by when this token will be launched. The Gooners, Arsenal fans who are currently signed or are going to sign for My Arsenal reward loyalty programme, will get a chance to have a $AFC fan token for free.  This reward programme was organised focussing on fans’ interest and requirement. 

The $AFC fan token holder will use the token as a tool to show their support to the team by voting in various team decisions including issues like write up messages on captain armbands or songs to play after the team scores a goal and so on. The fans can also take part in renaming the practice pitch after a legendary player. Further, the fans can test their skill by taking part in various games, competitions and quizzes using this AFC fan token and thereby earn themselves real life rewards and club related benefits. The scores of this competition will be shown on global leaderboards. As per Alexandre Dreyfus, CEO of Chiliz and Socios.com, “Socios.com will become the meeting place for the fans”. 

Other fan tokens launched earlier

In May, three Formula 1 leading European racing teams declared their fan tokens on the Chiliz blockchain. In the same month there was another announcement from UFC, The Ultimate fighting championship saying they would launch their own blockchain based fan tokens.

What is a fan token?

Fan tokens in the crypto market is a type of token. It enables the holders to access sports-club specific membership perks including voting rights in club matters, club rewards and various experiences. These are fungible and thereby allow to be exchanged against sports club merchandise and other VIP experiences.

How does fan token work?

Fan tokens, like any other crypto assets, can be exchanged. Based on market movements and other related factors, the seller set the price of the token while trading. The position of the fan in the platform fan ladder will change based on the higher or lower number of fan tokens they hold. Having a certain amount of fan tokens enable the holder to access the right to vote on a certain range of club matters. The club determines the matters that their fans can vote through fan tokens

Indrani Bose

CBW - External Analyst

INDIA