What is Chiliz (CHZ)?

Have you ever thought about combining sports and crypto? Imagine a world where fans rocking the stands while watching a football match not only cheer but also make decisions about the future of the club… Chiliz makes exactly that possible. Chiliz (CHZ) is a cryptocurrency platform that aims to increase fan engagement in the world of sports and entertainment with blockchain. Founded in 2018 by Alexandre Dreyfus, Chiliz offers an ecosystem that allows fans to connect with sports clubs in a more interactive way. The project works integrated with the Socios.com platform, offering fans the chance to participate in the decision-making processes of their favorite teams. It also allows fans to win prizes through cryptocurrencies. In other words, Chiliz offers a very innovative approach: We can say that it digitizes the traditional fan experience. Because it added the concept of “fan token” to the cryptocurrency dictionary and continues to be one of the giants in this field. In addition, it has created a new revenue model for sports clubs. In this guide, we will examine in detail what Chiliz is, how it works, and how it revolutionized the sports industry.

Definition and Origin of Chiliz

Chiliz (CHZ) is a blockchain platform focused on sports and e-sports and the name behind the cryptocurrency called CHZ. So, what does Chiliz do? The platform generally allows fans to interact with their favorite teams through special fan tokens. Essentially, it is a platform where fans can buy tokens, influence team decisions and win prizes, while teams can earn money from their fan base in new ways. In short, the answer to the question of what Chiliz is is “a blockchain network that allows fans to participate more actively in their clubs.” This network forms the infrastructure of the fan platform called Socios.com. The foundations of Chiliz were laid by Alexandre Dreyfus in 2018. The CHZ token entered the markets in February of the same year. Developed under the Malta-based company Mediarex, Ciliz has taken interaction to a whole new level by offering cryptocurrencies to the fans of sports clubs.

The aim of Chiliz is to make the interaction between fans and sports clubs two-way. When looking at classic methods, fans are generally passive consumers. However, thanks to Chiliz, clubs are issuing fan tokens, giving fans a say in certain matters. So, what is a fan token? Fan tokens are digital, utility tokens issued by a sports club or organization under its own brand. These tokens allow fans to participate in the club's decision-making processes, and also offer various privileges. For example, a fan token holder can vote on issues such as their team's jersey design, stadium music, or award ceremonies via the Socios application. Fan tokens are produced on the Chiliz blockchain. These are also the answers to the question of "what is Socios com": Socios is a platform that offers fans surveys and votes using the Chiliz infrastructure, and enables token trading and rewards.

On the other hand, the utility token of the Chiliz platform is called CHZ. If we look at the question of "what is CHZ coin", we see that it is actually the native cryptocurrency of the Chiliz network. CHZ was produced in a way that is compatible with the Ethereum network and therefore initially came out in the ERC-20 standard. The currency used to purchase fan tokens in the Socios.com application is CHZ. In other words, when a fan wants to acquire the token of the club they support, they first purchase CHZ from exchanges or the Socios application. Then, using these CHZs, they can buy, for example, an FC Barcelona or Juventus fan token. In short, if you ask what Chiliz does: Chiliz; It creates an innovative ecosystem that bridges the gap between clubs and fans, offering fans blockchain-based say and rewards.

Chiliz History: Major Milestones

Although Chiliz is not as old as Bitcoin or Ethereum, it is a highly reputable platform with what it has contributed to the blockchain field. Despite its relatively short history, it has experienced rapid growth in both the sports and cryptocurrency worlds. The major milestones in Chiliz’s history are as follows:

2018 – Establishment and CHZ token launch

The Chiliz project was launched in 2018, and the CHZ token was first released the same year. Alexandre Dreyfus and his team announced the project by launching CHZ in February 2018. Chiliz attracted the attention of major investors during its establishment; for example, a private sale in mid-2018, which included the participation of industry giants such as Binance, raised approximately $65 million. This funding was channeled into the development of Socios.com, the world’s first large-scale fan engagement platform. The Socios app was designed as an environment where fans could buy tokens and vote. The development of its first version accelerated between late 2018 and early 2019.

2019 – Launch of the Socios app and the launch of the first fan tokens

2019 was a turning point for the Chiliz and Socios ecosystem. In 2019, the Socios app was launched with its features. The app allowed users to buy and sell fan tokens with CHZ via mobile devices, participate in club surveys, and manage their token wallets. Moreover, Socios’ first major partnerships were announced during this period. The world’s first official fan tokens were introduced at the end of 2019: Italian club Juventus and French club Paris Saint-Germain (PSG) became the first teams to issue their own fan tokens.

The launches of the Juventus fan token (JUV) and PSG fan token (PSG) were recorded as important moments as they allowed the traditional sports world to get to know blockchain. Thanks to these tokens, fans of the clubs in question started voting on certain issues such as the club anthem selection. One of the main features of the Socios app, the poll and voting function, found real use for the first time in Juventus and PSG polls.

In addition, token trading and club-based competitions started on Socios in 2019. The application also introduced rewarded interaction tools such as quizzes and token earning. These developments provided a concrete introduction to the application to the audience asking the frequently heard question “What is Socios.com?”. In addition, a first was signed in the category of fan participation applications.

2020 – Agreements with major clubs

In 2020, Chiliz signed many agreements that made a splash in the football world. Especially the major clubs of Europe joined the Socios platform one by one. FC Barcelona announced the fan token called $BAR by reaching an agreement with Chiliz in February 2020. With the launch of the Barcelona fan token, 600 thousand tokens were offered for pre-sale for fans and this sale sold out in just a few hours, earning the club approximately 1.2 million euros. This success was one of the most striking examples of fan tokens and set an example for other clubs.

In 2020, clubs such as Atletico Madrid, AS Roma, and our country's Galatasaray also announced their Socios partnerships and launched their own fan tokens. Galatasaray, in particular, became the first Turkish club to sign an agreement with Socios, issuing the $GAL token and introducing this concept to a wide audience in Turkey. During the same period, e-sports teams and different sports organizations such as UFC also started to join the Chiliz ecosystem.

2021 - Expansion and mainstream recognition

2021 has seen the concept of fan tokens gain more visibility in the mainstream. In 2021, Chiliz forged new partnerships with sports organizations in Italy, England, Spain and even the United States. English and European clubs such as Manchester City, Inter Milan, Arsenal and Everton have joined Socios and launched their own tokens. Chiliz has become more accepted as an alternative revenue model in the sports industry. Due to the COVID-19 pandemic that began in 2020, clubs’ stadium revenues had decreased. As a result, they have made significant revenues from fan token sales through Chiliz. For example, long-standing Italian club AC Milan managed to raise over $6 million from the ACM fan token offering that took place at the beginning of 2021.

Socios also made appearances at traditional sporting events in 2021: that year, the Chiliz/Socios brand sponsored the Ballon d’Or (World Player of the Year) ceremony for the first time. In other words, it has increased its global recognition considerably. Again in the same year, it was announced that world-famous football player Lionel Messi was given PSG fan tokens as part of his “welcome package” when he transferred to PSG.

2022 – The ecosystem has matured

By 2022, the Chiliz ecosystem had grown considerably. In addition to football, the Socios platform also had many partners from fields such as basketball, American football, and esports. The total number of fan tokens had exceeded 50, and sports clubs had made significant progress in adapting to blockchain technology. According to a Reuters report, as of the beginning of 2022, the total value of the entire fan token market had reached approximately $300 million. During this period, it was seen that Socios also turned to agreements with Formula 1 teams and some NBA teams. The popularity of fan tokens has increased and decreased with major sporting events. For example, during the 2022 FIFA World Cup, there were volume and price fluctuations in the teams' tokens. However, in general, digital interaction between clubs and fans has begun to normalize. The success of the PSG, Barcelona, ​​and Juventus fan token projects paved the way for other teams to take similar steps. By the end of 2022, Chiliz had completed preparations for a major update that would take its technological infrastructure a step further.

2023/2024 – Chiliz Chain 2.0 and NFT support

Chiliz welcomed 2023 with the decision to develop its own blockchain network. This new network, called Chiliz Chain 2.0, was announced in the last months of 2022. It was built on Chiliz's existing system as an independent layer-1 blockchain. While CHZ and fan tokens previously worked on the Ethereum network, Chiliz now has its own blockchain with Chiliz Chain 2.0. This transition, referred to as the Chiliz Chain 2.0 transition, brought with it many innovations. The new chain was designed to be compatible with the Ethereum Virtual Machine (EVM), allowing developers to use the smart contracts they are used to on the Chiliz network.

NFT-supported features were also added to the Chiliz ecosystem during this period: Sports clubs and app developers can now produce tickets, digital collections and souvenir products in NFT format on Chiliz Chain 2.0. Chiliz even started testing NFT tickets at some sporting events (NFT tickets became active as of May 2025 and were used in the KLPGA Championship in South Korea). It also announced that it will distribute digital collections (POAP - Proof of Participation Protocol) that document fans' participation in the stands (an example of this can be seen at the TOKEN2049 event in Singapore or the Korea Blockchain Week 2024 event).

One of the most important features of Chiliz Chain 2.0 was the rewarding of users who contribute to the security and transactions of the network. Because in 2023, the mechanism called CHZ staking was put into effect: CHZ token holders can now contribute to network security by locking their tokens to the validator nodes of the Chiliz chain and in return, they can earn new CHZ rewards at certain rates annually. Thus, CHZ token holders are no longer just a coin bought by fans. It has also become a coin preferred by investors who want to play a role in the management and security layer of the blockchain.

In the summer of 2023, Chiliz gradually transferred all fan tokens created on Ethereum to its own main network; as of September 2023, all tokens on Socios started working on the Chiliz Chain. In this way, transaction fees were reduced and the platform became more independent.

In 2024, the Chiliz ecosystem took steps towards becoming a sports innovation center in the Web3 world by launching global hackathons and incentive programs for the development of decentralized applications (dApps) on the new chain. Now Chiliz is not just a “token issuing company” but also a blockchain ecosystem where other developers can develop sports and entertainment-focused projects.

Why is Chiliz Valuable?

Chiliz has quickly become one of the leading platforms at the intersection of sports and blockchain. So, what exactly makes Chiliz valuable? Here are the main points that highlight the value of Chiliz and the usage areas of the CHZ token...

Chiliz is one of the first platforms that transformed the fan experience

Chiliz is currently a pioneer in terms of digitizing fan interaction. Because it is one of the first blockchain projects that allowed major sports clubs around the world to issue official fan tokens. This gave Chiliz the “first mover” advantage. For example, its agreement with clubs such as Juventus and PSG to implement the fan token concept positioned Chiliz as an innovative brand in the sports world. As we mentioned before, this concept improved the traditional fan experience. Fans were no longer just watching the match. They also became active actors who influenced their teams' decisions through crypto assets. Thanks to this innovative approach, Chiliz became one of the first names that came to mind when it comes to sports clubs and blockchain integration.

CHZ token usage is quite wide

Another thing that adds value to Chiliz is of course its own token. CHZ token usage area is quite diverse and wide. First of all, CHZ is the basic currency used to buy fan tokens on Socios.com. Fans need CHZ when they want to obtain or buy and sell the token of their favorite team. In addition, CHZ has also taken on the role of gas fee (transaction fee) and governance token with the launch of Chiliz Chain 2.0. In other words, the fees for transactions to be made on the Chiliz network are paid with CHZ and CHZ can be used in new applications on the network.

In the Socios ecosystem, different use cases have emerged with CHZ, such as not only token purchases, but also participation in special events, purchase of NFTs and souvenir products. For example, some clubs offer special content or VIP rewards to those who hold a certain number of fan tokens. Taking advantage of these advantages can also indirectly increase the demand for CHZ. In short, when asked what Chiliz is for, it can be stated that the CHZ token is a trading vehicle for club tokens on the one hand, and the lifeblood of the Chiliz chain on the other.

It offers an alternative income area for clubs

Chiliz has created a new source for sports clubs beyond traditional income items. Fan token sales have made significant contributions to the clubs' coffers, especially as an alternative to the decreasing ticket and broadcast revenues during the pandemic. For example, the $ 1.3 million income it obtained from the BAR token pre-sale or the more than $ 6 million AC Milan earned from the fan token offering show that we should not ignore the power of the financial potential of this model. Fan tokens can also create a continuous income stream. Because as token owners increase, the brand value of the club increases and collaborations increase. According to a study conducted by Marca, it is predicted that fan tokens will become the second largest source of income in the sports industry after broadcasting rights in the coming years. Moreover, while some of the fan token revenues go directly to the clubs' coffers, some are allocated to rewards and events for the fans, creating a sustainable economy.

Blockchain integration for sports clubs

Chiliz has enabled sports clubs that may be distant from technology to easily step into the blockchain world. Thanks to Chiliz, clubs were able to create their own token economies without getting into complicated technical details. According to the project's website, the Chiliz network has already been adopted by more than 70 elite sports teams. This ecosystem has created a global "sports blockchain network" by bringing together world giants and local league teams under the same roof. In this way, sports clubs integrated with blockchain technology, while Chiliz provided both the technical infrastructure and set standards in the industry. In addition, thanks to the API and tools provided by Chiliz, clubs can develop their own applications, NFT collections or games. In other words, the platform has become open to third-party innovations.

Chiliz staking and community contribution

The Chiliz staking mechanism, which will be launched in 2023, has added a new dimension to the value proposition of the CHZ token. Now, community members can stake their CHZ to help secure the network while earning passive income. The initially high annual staking rewards have incentivized the community to contribute to the network. For example, the inflation rate for the first year of Chiliz Chain 2.0 was set at around 8.8 percent. A large portion of these newly issued CHZs are distributed as rewards to validators and stakers. In this way, network security and decentralization are targeted, while long-term demand for the CHZ token is created. The staking feature has also made Chiliz a long-term project.

Who is the Founder of Chiliz?

The founder and CEO of Chiliz is Alexandre Dreyfus. For those wondering who is the founder of Chiliz, Dreyfus is known as an entrepreneur who brings together the worlds of blockchain and sports. So, who is Alexandre Dreyfus? To put it briefly, Dreyfus is a tech entrepreneur originally from France (with British citizenship) and has been active in the digital media and iGaming (online gaming/betting) sectors for over 20 years. Dreyfus began his internet entrepreneurship in the late 1990s and was involved in the founding of successful online poker and gaming platforms such as Winamax at a young age.

Dreyfus, who gained significant experience in the field of online gaming with the company Chiligaming he founded in 2006, launched the sports and entertainment-focused Mediarex Sports & Entertainment company in Malta in 2012. Dreyfus, who acquired and managed projects such as the Global Poker Index (GPI) within this company, played a role in the digitalization of sports and data analysis. Alexandre Dreyfus' Web3 entrepreneurship adventure reached its peak with Chiliz. In 2018, he launched the Chiliz project, predicting that blockchain technology could revolutionize the sports industry. As the founding CEO of the Socios.com platform, Dreyfus turned the fan token ecosystem, which dozens of teams around the world participated in, into a reality in a few years.

Under Dreyfus' leadership, we can say that Chiliz turned into a global success story starting from Malta and extending to Europe, then to Latin America and Asia. Alexandre Dreyfus frequently emphasizes in conferences and interviews that Chiliz's goal is to "turn fans from passive consumers into active participants and stakeholders."

Frequently Asked Questions (FAQ)

In this section, we answer some frequently asked questions about Chiliz and CHZ in short answers. Below is some information that may be useful for both newcomers to the Chiliz fan token ecosystem and existing users:

• What is Chiliz and how does it work?: Chiliz is a blockchain platform developed specifically for the sports and entertainment industry. It allows fans to purchase fan tokens of their favorite clubs using the cryptocurrency CHZ and participate in club decisions through these tokens.
• What can be done with the CHZ coin?: The CHZ coin is at the core of the Chiliz ecosystem and has multiple functions. The first thing you can do with CHZ is to buy fan tokens through Socios.com. Secondly, CHZ can be used in trading transactions. There are CHZ trading pairs on many cryptocurrency exchanges, so you can convert your CHZ to different currencies or crypto assets. Thirdly, with the launch of Chiliz Chain 2.0, the CHZ staking opportunity has emerged. This means that you can earn passive income at certain intervals by depositing (staking) your CHZ to validators on the Chiliz network. Fourth, CHZ is also used to pay transaction fees (gas fees) on the Chiliz network. For example, if you want to create a new smart contract on the Chiliz blockchain or mint an NFT, the required fee is charged in CHZ.
• What is a fan token?: A fan token is a blockchain-based crypto asset issued by a sports club or organization. These tokens offer fans the opportunity to interact with the club and have a say in some matters. Each fan token is specific to the club it belongs to and is usually referred to by the name or abbreviation of the club. For example, the $GAL token represents Galatasaray, and the $BAR token represents Barcelona.
• Which clubs does Chiliz work with?: The Chiliz/Socios ecosystem collaborates with many clubs and organizations around the world. We have already mentioned the PSG, Barcelona and Juventus fan token projects. Apart from this, for those wondering which clubs Chiliz works with, we can list some prominent examples: Manchester City and Arsenal from England, FC Union Berlin from Germany, Galatasaray and Trabzonspor from Turkey are among the clubs Chiliz has partnered with. Teams such as River Plate and Corinthians in South America and Urawa Red Diamonds in Asia have also issued fan tokens on the Socios platform. MMA/UFC, esports (e.g. e-sports teams such as OG, NAVI) and Formula 1 (F1 teams such as Aston Martin, Alfa Romeo) are other sports branches Chiliz works with.
• Who can use the Socios app?: The Socios app is basically a platform open to sports enthusiasts from all over the world. Anyone who has a smartphone and wants to interact more with the teams they support can use the app.

Follow our JR Kripto Guide series to understand Chiliz, which emerged from the combination of the sports and blockchain worlds, and the power of the CHZ token.