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What Are Fan Tokens?



TL;DR


Fan tokens are an innovation that brings fans closer to their favorite sports teams. Many of the largest and most popular sports clubs have launched their own fan tokens including; Barcelona, PSG, Athletico Madrid, Arsenal, and Manchester City, among others.


These fan tokens hold special privileges for the fans such as limited edition NFTs and the ability to vote on key club decisions. Other things include special access to merchandise and fan badges.


It is important to understand that, unlike Bitcoin and Ethereum, these projects don’t have an underlying blockchain that provides them value, instead, they rely on the sports organization. In other words, the value comes from the perks and rewards holders get from the sports organization.


You can buy these fan tokens on exchanges such as Binance or Socios.com.


Introducing Fan Tokens


Fan tokens are the next iteration of digitized experience on the blockchain. Think of it as the new cool kid on the block and everyone want to be like them. Sports clubs have gotten into the fold and have created and partnered with existing projects to launch their own fan tokens.


This initiative was launched to bring fans closer to their favorite sports team. Not bad considering many of these fans are encouraged to get involved and vote on key decisions as holders of these tokens.


It is important to understand that Fan Tokens are not NFTs. NFTs are non-fungible meaning no two NFTs are alike. On the other hand, Fan Tokens could be traded on a 1:1 basis meaning they are fungible and carry the same value, similar to Bitcoin (BTC).


Features of Fan Tokens


Fan tokens are utility tokens associated with a sporting brand. Many famous football clubs around the world have utilized the power of blockchain to interact and get their fanbase involved in key decisions.


Some of the perks of buying


Fan tokens can generally be a good idea if you support one of the many sports clubs offering them. As an owner of the fan token, you are able to access privileges that fans otherwise wouldn’t be able to. The perks for each token depend on the sport and club itself. You could even buy fan tokens for MMA sporting companies and vote on which two fighters you would like to see fight. Talk about giving power to the player.


For instance, as a fan token owner of a certain sports club, you could have priority when purchasing tickets. But that's not all, there is more, you could also vote on proposals like choosing the team's next kit, a sport's team slogan, or even jersey design.


One popular example is the Paris-Saint Germain (PSG) Fan Token. As holders of this fan token, you can take part in voting for a message on the captain's armband, vote for FIFA 22 PSG fan cover, and much more. In the future, holders of the PSG Fan Token will be able to take part in future projects such as NFT launches and much more.


Common use cases for Fan Token holders


Once you own one of these fan tokens, you become part of the exclusive community that is provided special privileges. You may wonder what kind of privileges. That all depends on which one and for which club or sporting organization. However, the following are some common examples.


NFTs


Some fan tokens offer exclusive and rare NFTs to their token holders. As a Fan Token holder, you have the exclusive right to purchase these NFTs.


Voting Rights


Voting rights are probably the most common ones. As explained earlier, holders have a decisive voice in their respective clubs by being part of the decision-making process. This decision-making process is part of the governance system built into the token.


Fan Badges


Some of the clubs associated with these Fan Tokens hold events where you can win a Fan badge. Collecting enough of these could get you to win an exclusive experience with the club or brand.


How to buy Fan Tokens


There are multiple exchanges where you could purchase some of these tokens. In fact, even some decentralized exchanges also offer you the opportunity to purchase these.


Nonetheless, we will provide you with a tutorial on an exchange that exclusively operates for the purpose of providing a market for these Fan Tokens.



Head over to this website and download the app. This is the official website for the app that houses many of the Fan Tokens.


$CHZ


Once you do, you need to purchase Chiliz ($CHZ) which is the official currency of the app. You can use this to trade and purchase any Fan Token by exchanging $CHZ for the desired Fan Token.


You may be wondering what is Chiliz. Fair question. Chiliz is the company associated with the mission of bringing fans and their clubs together in the decision-making process. They are the ones who help issue most of the Fan Tokens.


Final Thoughts


As Fan Tokens become increasingly popular amongst its supporters, it is only a matter of time before we see many more clubs launch. This fan model is relatively new as it combines the support of fans with the security and flexibility of a blockchain. As more and more benefits are offered by these clubs through their Fan Tokens, the greater the demand for them.


For more info on how to purchase this Token head over to the official Socios website.

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