Good day everyone!
Context: There is a new company called Chiliz which created a platform called Socios.com that allows fans to vote using governance tokens on decisions their teams put up. Football teams like Barcelona and Juventus, e-sports teams like NAVI, and the UFC thus far have partnered with them - fans purchase the CHZ token on the socios app to purchase specific team tokens (e.g. Barcelonas BAR token) which they can then use for voting purposes and VIP benefits. The clubs receive the CHZ tokens after a 3 month lockup period, which they can sell for fiat.
I have a few questions as I cannot seem to figure it out:
- Do the club tokens like BAR get burned after the user votes using them?
- Do CHZ coins get burned after they’re sold for fiat by the clubs?
- Will CHZ remain within a stable constant price range? Realistically, if it’s only purchased by fans to then ‘swap’ it for club tokens, and the clubs receive the CHZ with the intent to sell it for fiat, surely that means that the price will forever be balanced since nobody is holding it? - socios the platform will hold some chz as funds for their operations, but surely they’ll also sell them for fiat to then be able to actually fund whatever they want to do?