Key Takeaways:
Sports-focused blockchain Chiliz is expanding its fan tokens to the Solana and Base networks, a move designed to unify liquidity for more than 70 teams and national selections ahead of the FIFA World Cup.
"By using an Omnichain Fungible Token (OFT) standard, fan tokens will exist on each supported chain with a unified supply, eliminating the need for wrapped tokens or fragmented liquidity pools," Chiliz said in its announcement.
The integration, facilitated by the cross-chain messaging protocol LayerZero, allows tokens to move between chains while maintaining a single, unified supply. When a token is transferred, it is burned on the origin chain and minted on the destination chain, preventing duplication. The expansion also introduces a new tokenomic feature where 10 percent of revenue generated from fan token sales across all chains will be used to buy back and permanently burn the native $CHZ token.
This strategic shift from its proprietary Chiliz Chain to a multi-chain model aims to significantly boost trading volume and accessibility for tokens representing sports giants like Paris Saint-Germain, FC Barcelona, and the national teams of Argentina and Portugal. By connecting with the user bases of Solana and Coinbase's layer-2 network Base, Chiliz is positioning itself to capture a larger share of the SportFi market, particularly with the increased global attention from the upcoming World Cup.
Chiliz's transition to what it calls "omnichain distribution" marks a significant evolution from its original single-chain strategy. The Chiliz Chain will remain the core layer for smart contracts and governance, while Solana and Base will act as new distribution layers, increasing user access and potential for DeFi integration.
The new buyback-and-burn mechanism creates a direct link between the success of the fan token ecosystem and the value of the $CHZ token. As activity and revenue grow on partner chains like Solana and Base, the total supply of $CHZ is designed to decrease, creating a deflationary feedback loop tied to platform growth.
The rollout has already commenced, with the Chiliz token ($CHZ) and community asset $PEPPER now available across the supported chains. Tokens for major European soccer clubs, including Manchester City and Juventus, are scheduled to follow.
To facilitate trading, liquidity for the newly bridged tokens will be concentrated on specific decentralized exchanges. On Solana, users can access the tokens through the Sunrise gateway and trade on platforms like Meteora and Jupiter. On Base, liquidity will be centered on Aerodrome. The move onto Base is also a key part of Chiliz's strategy to expand its presence in the U.S. market by connecting with regulated and widely used crypto entry points.
This article is for informational purposes only and does not constitute investment advice.
