The club plans to reinvest the earnings from its role as a validator by purchasing PSG fan tokens.
Paris Saint-Germain, the French soccer powerhouse, has announced its intention to become a network validator for the Chiliz Chain blockchain, which hosts its PSG fan tokens. The club will use the revenue generated from this validation role to regularly repurchase its fan tokens.
While sports clubs have dabbled in cryptocurrency through the creation of fan tokens in recent years, this marks the first instance of a club actively participating as a blockchain validator. Validators are responsible for managing blockchain nodes, ensuring network security through tasks such as transaction verification and smart-contract authorization. In return for their services, validators earn revenue from operating a node.
Having introduced its fan token in September 2018, PSG currently boasts a market capitalization of $28 million for its token, according to CoinMarketCap. The buy-back initiative aims to replenish PSG’s fan token reserves regularly, fostering a sustainable digital economy around them, as highlighted by Chiliz.
Pär Helgosson, Paris Saint-Germain’s head of Web3, emphasized the club’s commitment to maximizing the value and revenue potential for all stakeholders within this evolving digital economy.
In addition to PSG, several other prominent soccer clubs, including FC Barcelona, Manchester City, Juventus, Arsenal, Inter Milan, and AC Milan, have also issued tokens on the Chiliz platform.
Furthermore, Paris Saint-Germain revealed plans to host a hackathon event at its Parc Des Princes stadium in the upcoming months, with Chiliz as the co-host.
