Binance, which is arguably the number one cryptocurrency exchange in terms of volume, has entered into collaboration with Chiliz, which issues name sake fan-tokens based on sports and entertainment concept.
In the first step towards collaboration, Chiliz fan-tokens pertaining to football clubs such as Juventus (JUV) and Paris Saint Germain (PSG) would be offered via the Launchpool platform it owns.
The Launchpool platform permits staking of tokens by users for a maximum period of 30 days, with a purpose of farming some reward providing assets, and days before they get listed in innovation zone of Binance.
This offers a real-time marketplace for assets that get farmed. Through the listings, staking of crypto tokens such as Binance Coin (BSB), Chiliz (CHZ) and Binance Dollar (BUSD) can be done using JUV or PSG, beginning December 15 (time: 00:00 UTC).
Following the staking processt, on December 21, at 06:00 UTC Binance intends to permit trading of fan tokens paired with BUSD, BSB, and CHZ.
Launchpool comprises of 210,000 JUV and roughly 180,000 PSG tokens as rewards. A major portion of those tokens i.e. 70% will be set aside for the BNB pools, while 20% will be allocated to the Chiliz pools.
The remaining 10% will be assigned to Binance Dollar. As time passes, reward distribution will undergo changes. Before the launch of trading pairs, 8.33% of aggregate reward gets farmed for the initial six days.
Between December 21 and 28, the figure will decline to 2.5% per day. Another round of decline to 1.875% per day will happen between December 29 and January 13. Binance is one of the early investors in the Chiliz platform, and the recent announcement paves way for a partnership in the long-term future.
Binance CEO, CZ, asserts that the platform has, “huge potential in bringing crypto to mainstream audiences.” Chiliz CEO Alexandre Dreyfus detailed that:
“This new partnership really seals our original vision of tokenizing the sports & entertainment industry over the next 5–7 years.”
Chiliz continues to enter into partnership agreements with several top soccer clubs in addition to sports related institutions such as the UFC, and intends to bring in several associates.
In recent times, a Visa debit card was introduced Chiliz and the Socios system it runs, providing rewards in the form of fan-tokens for buying goods and services.
