PSG has just announced an unprecedented initiative in the world of football: it will become a validator of the Chiliz blockchain, which hosts its famous fan tokens. The income generated will be used to regularly repurchase these cryptos, in a virtuous logic.
PSG, pioneer of the adoption of crypto in football
Until now, football clubs’ forays into the crypto world have been limited to the launch of tokens dedicated to their supporters. This allowed access to exclusive advantages such as meetings with players or limited edition derivative products.
But by becoming a validator of the Chiliz blockchain, PSG is taking a major step forward and creating a precedent in the world of professional football. The Parisian club will in fact manage nodes on this network, participate in the validation of crypto transactions and smart contracts, and obtain income as a reward.
Rather than cashing these gains, PSG has committed to reinvesting them in the regular redemption of its own PSG fan tokens on the market. Objective: to support the value of the token and enrich the club’s reserves for future uses.
A virtuous circle around the fan token
This redemption mechanism with validation gains creates a virtuous economic circle around the PSG fan token. The more activity there is on the network, the more money the club will earn to redeem its crypto. As demand increases, the value of the token is boosted, which generates even more revenue, etc.
PSG is banking on this snowball effect to build a truly sustainable digital economy around its fan token. The other clubs having issued tokens on Chiliz are likely to follow this innovative example.
Towards massive adoption of crypto in football?
Some will also see it as a further step towards the mainstream adoption of crypto. The fact that a football giant like PSG publicly takes on the role of blockchain validator sends a strong signal. Especially since a hackathon on this theme will be organized at the Parc des Princes in the coming months.
It remains to be seen whether this initiative will be followed by other big names in football, still cautious about cryptos. But PSG has probably just scored a decisive goal by forcing the entry of blockchain into the very conservative world of professional football. Crypto is now coming into the game!
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