chiliZ FAQ

Answers to the questions that keep popping up in our inbox(es).

What is the chiliZ platform?

chiliZ is a platform for sports and esports fans to crowd-manage their favourite teams, games, leagues and events. By 2020, we anticipate an esports landscape that is not only shaped by what games, teams and leagues draw the highest audience, but by those who can effectively activate and monetise that audience by putting the fan-base in the driving seat. It’s called radical fan engagement.

What is the Token Ticker?

$CHZ

When will chiliZ have a public sale?

chiliZ will not have a public sale. We reached our hard cap during private placement.

How much has chiliZ raised?

chiliZ has raised a total of $65mn through private placement.

When will chiliZ be listed on an exchange?

Sometime during the summer.

What is the total supply of $CHZ?

8,888,888,888 $CHZ (8.8 Billion)

Will you have an Airdrop? And when?

Yes, we are planning to have multiple Airdrops. We will confirm dates and further information via our social channels.

Do you have an Official Japanese Telegram Channel?

Yes, please join: https://t.me/chilizjapan

Is chiliZ working with Binance?

Yes, earlier in June we announced that Binance has invested directly in chiliZ. If you’re interested to read more about that, read here: https://medium.com/chiliz/binance-chiliz-join-forces-to-tokenize-sports-industries-55ec438439c0

What was the chiliZ hard cap?

$65,000,000 ($65 million)

Can I work at chiliZ?

If you think you’ve got what it takes to join the team, please send an email to: jobs@mediarex.com

What will cause more demand for $CHZ?

Demand for the chiliZ token will increase as more esports teams, leagues and game titles are added to the platform, and as more fans want voting rights.

Why would esports teams and other gaming organisations partner with chiliZ?

Our platform gives teams and other gaming entities (publishers, leagues, event producers etc) a direct way to both engage and monetise their fans. Giving fans the power to vote on their favourite organisations doesn’t just give them the ability to enhance their level of entertainment, it gives them a reason to care on a higher level. Organisations who partner with us and adopt our platform can also leverage their existing fanbase to crowdfund new initiatives, such as developing expansion rosters, or creating a revenue stream based on fans actively trading voting power amongst themselves.

Have you partnered with any organisations as yet?

We are in talks with various sports & esports teams and leagues with the aim of onboarding 6–10 by the end of 2018. We cannot disclose details about this at this time, but we will provide an update in due course.

How does a team, league, club etc join the chiliZ platform?

Following the launch of our platform & over the next 12 months, our business development team will onboard dozens of esports teams and clubs. Some teams have already reached out to us, including a traditional football (soccer) team. To start with, we will focus on big, legitimate esports teams with a large, global fanbase. At this stage, we will not be onboarding startup esports teams.

Are there esports teams ready to join the Global Player League?

We are in the process of building our own league (GPL — Global Player League) which will be re-launched in Q1, 2019.

What games will the GPL feature?

We have several pending negotiations with some very popular games, although we can’t disclose anything at this stage.

In the past year many blockchain based esports projects have been announced. Does chiliZ have any competitors?

There are currently no direct competitors to chiliZ when it comes to the tokenization of esports related management of voting rights. There are some people however attempting to achieve this in the sports industry.

Which exchanges will list chiliZ?

We are already in direct contact with major exchanges, but will focus our listings on strategic partner exchanges only.

How up-to-date is your whitepaper?

Our whitepaper is modified and updated when we receive feedback to ensure the venture, and the language we use to describe it, is easy to understand.

How do you plan to use your advisors & shareholders?

Most ICOs use advisors to help with publicity & fund raising. We have focused on securing advisors who will help us after the ICO phase, help us develop the business, design our products and services and to network.

Technological FAQ

Why did you choose to use blockchain technology?

For us, blockchain was the most practical and eloquent way to unite the needs of maintaining voting integrity and transparency with turning voting rights into an ‘ownable’ commodity. By having organisations on the chiliZ permissioned chain — connected to the ETH Main Net via tokens exchangeable with our CHZ$ ERC20 token — we are able to create a direct ‘fan-funding’ solution for sports/ esports teams in the future, in addition to being able to tokenise the management arms of these organisations.

Can you explain more about the platforms transaction fees?

We have not set prices on transaction fees yet as we are still in the process of determining the correct fee-to-transaction proportion to ensure a good user experience whilst also being able to maintain a sustainable revenue. We do know that these fees will be in the single digit % range at a maximum.

Fees taken from transactions in the chiliZ platform will be done at POS/ POT (Point of Sale or Point of Trade, for P2P transactions) and will be debited as a percentage from every $CHZ used and will be collected by the platform.

Will the chiliZ token be ERC20 and available on the main Ethereum network (Main Net)?

Yes, chiliZ will be an ERC20 token, available on the main Ethereum network. ERC20 is a token standard which describes the functions and events that an Ethereum token contract has to implement. Most of the major tokens on the Ethereum blockchain are ERC20 compliant.

Ethereum blockchain is permissionless. Can it work for permissioned set-ups?

Ethereum supports the Proof-of-Authority consensus mechanism. Proof-of-Authority (POA) is a replacement for Proof-of-Work, which can be used for permissioned chain set ups. POA does not depend on nodes solving arbitrarily difficult mathematical problems, but instead uses a set of ‘authorities’ — nodes that are explicitly allowed to create new blocks and secure the blockchain. The chain had to be signed off by the majority of authorities, in which case it becomes a part of the permanent record.

How do you plan to develop the ‘Votes Token’ in the permissioned chain?

There are a lot of similarities between Vote Tokens and any cryptocurrency token — both are tokens created in an Ethereum blockchain for example, in the main Ethereum network for the chiliZ token and in the chiliZ permissioned sidechain for the Vote Tokens. But the similarities don’t end there — there will be a limited supply of chiliZ; they can be owned; they can be transferred from one owner to another; they are fungible; and they have a price driven by the market. For all those reasons, Votes Tokens are intended to be ERC20 tokens minted in the chiliZ permissioned chain.

Permissioned chains are known to be chains used by R3, IBM, and others. Is there a reason to make it a private chain rather than a public chain?

There are two main reasons. Firstly, a private chain is governed by a Proof-of-Authority consensus mechanism, which is less intensive from a computational perspective than Proof-of-Work mining, which provides security but requires intensive computation. POA consensus also provides lower transaction acceptance latency. Secondly, it solves the problem with the associated cost of GAS, if we had to record all the information we intend to store in the Main Ethereum network. In our sidechain, we can control Ether supply and use it to pay the GAS for each transaction at a negligible cost for the company.

Please let us know about the advantages and disadvantages of a permissioned chain.

A POA chain is more secure (an attacker with an unwanted connection or hacked authority cannot overwhelm a network potentially reverting all transactions), less computationally intensive (Proof-of-Work mining which provides security requires lots of computation), more performant (Proof-of-Authority consensus provides lower transaction acceptance latency) and more predictable (blocks are issued at steady time intervals).

Are you going to develop a new platform or use an existing one (poa.network)?

We are intending to run our own permissioned chain. There is no plan at this point to use an existing one like (poa.network) as it would not allow us to leverage some of the benefits mentioned above, like the control of the authorities or the lower transaction acceptance latency.

Who will be the validators? How will they be elected?

At the beginning, validation will be in the hand of the chiliZ team. We are thinking about opening our ecosystem and move to a consortium permissioned chain model. In this case validators would be trustful partners, chosen by the ChiliZ team, that would join the ChiliZ platform like Esport Teams or leagues. Of course to build this consortium we would focus on participants sharing our vision and having common interest with us in the success of the platform.

How experienced is your development team?

Our team has more than 20 years of web and platform development including major gaming and payments solutions. We embrace blockchain technology, like any other technology we have used in the past.

Will you only focus on web, or mobile too?

The chiliZ platform will be available for both mobile and web users.

Is it possible to disclose regular business and blockchain development progress?

We want to be very transparent in reaching our milestones, and sharing our journey with the community, whilst still retaining commercial confidentiality. We have to be careful that the information we share cannot be used by potential competitors in the future, but monthly reporting is viable.

Why are you located in and operating out of Malta?

Mediarex’s diverse team have, in one capacity or another, have called Malta home for the past decade, with the company itself founded here in 2012. In addition to offering very business-supportive governance which has been heavily focused on growing the country’s fintech and digital gaming sectors, and the security it offers as an E.U. member nation Malta is also a global leader when it comes to government-level adoption and regulation of blockchain (and other emerging tech) initiatives.

All of this makes Malta a natural choice to build out chiliZ’ Token Sale offering and post-Sale development operations — a place where both chiliZ as an operator, its contributors and the fans who use our platform can feel safe.

We aren’t just happy the Maltese Government supports blockchain initiatives — we’re working hard to collaborate together, and generally be friendly. It’s a small island.

Why are you starting off by creating your own esports league (the GPL) first?

Having the first esports league with fan-controlled teams operating on our platform is a big deal to us, so we’re going to create exactly that. chiliZ wants to have the first functioning, fully built-out single-entity league where all teams, eventually across multiple game titles are controlled directly by fans because — in the most simple terms — we understand that we need to prove our ‘crowd management’ concept in a big way ourselves before we can expect the biggest entities in esports to plug into our platform. The GPL — Global Player League — is at once this needed proof of concept as well as an integral part of our business and growth strategy.

The GPL will serve to define our initial active userbase and to show existing esports teams the engagement benefits & revenue generation potential of creating new rosters for their teams built to operate in chiliZ’ fan directed environment. This also rings true for events producers — who will be able to see what impacts having direct fan engagement in the lead up to live tournaments offers to them as a spectator entertainment provider.

The simple translation: We’re utilizing our platform with our own B2C venture — the GPL, before transitioning into becoming a B2B platform where 3rd parties can come to connect to their fanbases.

GPL, in our initial form already exists. Check out GPL.com or visit the league on Twitter & Facebook to learn more.

Is the GPL oriented towards poker only?

NO. The GPL is the Global Player League and focused on digital competitive gaming, NOT poker. Think CS:GO. Think PUBG. Think Rocket League. We are aiming to create a centrally governed multi-game league with decentralized team governance. It’s an ecosystem that is gears towards established and emerging competitive gaming titles, not Poker — though as our initial experimental run was done within the poker world, it will be one of the many game verticals offered for fans to guide teams within.

What games are you forecasting to be part of the GPL in its first year and in future years?

Most likely candidates to be the “1st game” for GPL season 1 include CS:GO, PUBG & Rocket League (all subject to commercial agreement). In the future we will be adding in more competitive titles such as Dota 2 & others pending further publisher agreements. A poker version of the league will run in regional as opposed to global forms as well — focused on the Chinese market and the Indian market as well.

How will you convince top-tier esports organizations to integrate with the chiliZ blockchain crowd-management solution?

The short answer is by offering them lucrative revenue sharing agreements to create stable income in exchange for allowing fans trade Voices on those teams and organizations who plug in, as each trade is subject to a micro-fee from the chiliZ platform. In practice, we will be proving the viability of this mechanism as a revenue generator specifically, and chiliZ’ power to leverage unparalleled fan engagement in teams and events into brand growth generally, by putting our money (or more accurately chiliZ) where our mouth is and developing our own multi-game league — the GPL — independently to showcase the functionality and efficacy of our platform.

In addition to attracting 3rd party teams and organizations by leading with our own platform initiatives, chiliZ is also currently engaged in discussions with major existing operators in the esports ecosystem to bring about collaborations by the end of 2018. Our Advisory Board, especially those who are already active in the esports industry are helping us make these collaborative efforts a reality.

Do you currently have any competitors in your space?

No. Tokenized Team Control has never been developed. The chiliZ platform envisions a direct — blockchain realized — crowd management solution which is not currently available at all in esports or gaming, and is only a fringe mechanic for team management in conventional sports (with high profile examples being the Socios management model of Real Madrid, FC Barcelona, and shareholding system employed by the Green Bay Packers of the American NFL).

chiliZ is the first platform to digitize this solution, turning it into a trustless and scalable crowd voting and decision making engine. No one has pushed to transform fans into something more than consumers of media and branded gear — making them the decision makers behind the entertainment events and teams they follow and love. chiliZ is the first in this space.

Is there precedent for having fan controlled teams and events. Has the idea been shown to work?

In conventional sports, as mentioned above, the notion of having a large number of fans either direct top level management decisions, or — going a step further — owning small pieces of the teams they love — has existed in many different forms.

For a full list of teams in the current sports ecosystem who give their fans the power of Voice and ownership, pop into Wikipedia. There’s a whole page dedicated to the topic.

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