By
Temitope Olatunji
April 18th, 2024
Validators are financially rewarded for their efforts. PSG has revealed that it will buy back its PSG fan token.
One of the things that has made the blockchain and crypto sector more visible has been the association of various crypto firms with the sports world. From businesses sponsoring teams to clubs launching their own blockchain-based initiatives, it seems to be a win-win thus far.
The latest development in this space comes from Paris Saint-Germain (PSG), a top French football club. The team has announced yet another venture with Chiliz Chain blockchain, the network that currently hosts its fan tokens.
PSG Becomes a Validator
In the latest announcement, the team has confirmed that it will now act as a validator for the blockchain. This move is very notable because this is the first time that a football club will take on the role of a validator.
Validators are crucial to the survival of any blockchain and help to ensure that transactions are confirmed and completed without a hitch. And, of course, validators are financially rewarded for their efforts. PSG has already shed some light on what it will do in this regard. It will buy back its PSG fan token.
The purpose of this is to promote a more self-sustaining digital economy for its token moving forward. First launched in 2018, the PSG fan token has a market cap of just under $30 million and has proven to be popular with fans. Chiliz blockchain also has a reputation for facilitating fan tokens for some of the biggest sports clubs in the world.
The list of its clients includes FC Barcelona, Manchester City, and AC Milan. But PSG is breaking new ground with this development. By buying back the tokens in the market, the club can exercise more control over how they are circulated and make sure its fans are getting the best deal possible.
“We will optimize our future engagements for network effects, amplifying the value and revenue each stakeholder can generate and experience within this new digital economy,” said Pär Helgosson, Paris Saint-Germain’s head of Web3.
Sports and Crypto
This buy-back plan is not all that PSG is pursuing. Later this year, the club plans to hold a hackathon at its Parc des Princes stadium. The goal of this is not just community engagement but also encouraging developers to build new applications that leverage the blockchain and the fan token.
All this points towards a long-term investment in blockchain on the club’s part and if these efforts are successful, more popular clubs could follow suit.
For years, sports have helped to bring in more eyeballs and more credibility for a lot of blockchain ventures. Clearly, this has been beneficial to both sides and we can expect even more partnerships between major sports clubs and blockchain companies moving forward.