What are fan tokens, and how do they work?
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Loading... - Alejandro Colombo
- 28 Mar 2023
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What are fan tokens?
Fan tokens, as their name indicates, are digital assets that the holder, a fan of a specific sports team, club or player, owns and derives value from.
Traditionally, fan engagement with sports teams, players, leagues and clubs was passive. Fans purchased tickets and merchandise, while the team or players collected the cash, creating an ecosystem with a one-way street.
The emergence of fan tokens, with roots in blockchain-induced decentralization, however, transformed the scenario. How does a digital asset help forge closer connections between teams and fans, constructing a new kind of ecosystem that was advantageous to both stakeholders?
Helping create a fan-based reward system, these tokens are finite assets that fans can buy, sell and exchange collectibles, merchandise or meet-and-greet sessions with the team. Fan tokens do not function as traditional currency in the sense that they are not generally accepted as a medium of exchange for goods and services outside of specific fan token ecosystems. However, within their respective platforms, fan tokens can be used to access exclusive content and participate in voting and other similar activities.
Though popularized by an app and fan token platform called Socios, the fan token model has now been adopted by other blockchain companies. On Socios, fan tokens are purchasable with CHZ, the native coin of the Chiliz blockchain. Fan tokens are associated with several sports teams that monetize their fandom with rewards. Providing holders access to a string of engaging activities, fan tokens are assets designed to keep fans more involved with the team or player. Read More…
