Arsenal recently became one of the many football clubs to launch a fan token after they collaborated with blockchain firm chiliz for their $AFC fan Token. West Ham United also teamed up with blockchain platform Socios.com back in 2019 to launch a fan token ecosystem. FC Bayern Munich also did the same when they teamed up with Stryking Entertainment to create digital collectibles for its players.
With the wide acceptance of social tokens and NFTs in the sports world, it is only right to say that Fan Tokens are going to be an important building piece of a whole new sports community.
What are Fan Tokens?
Fan Tokens are a form of cryptocurrency that allows their holders access to varieties of fan-related membership perks like voting in club decisions, rewards, merchandise designs, and unique experiences. These Tokens can be used by sports clubs, music fan clubs, and other organizations to democratize and organize experiences, establish club leadership, and more.
Fan Tokens unlike NFTs are fungible or interchangeable. Just like cash, they can be exchanged for sports club merchandise, VIP slots and experiences, and more. And also, they play an important role in tightening the club community. Their value is usually determined by how much fans value being able to participate in the club and earn unique benefits and not from the underlying value principles of other cryptocurrencies.
Fans will be able to purchase these tokens and trade them with other cryptos. The price of the token is set by the seller and its also subject to change according to market movement and how popular the token is at a given time. Once Fans gain access to a certain number of fan tokens, they are granted rights to vote on a variety of matters concerning their favorite clubs.
These matters that fans can vote on depends on the club, but it is will fair if they include:
- Club merch design
- Tour bus design
- Ticketing matters
- MVP selections
The perks of owning a fan token give fans a sense of belonging and make them feel involved in the club they support. These tokens also create an exclusive community of the most dedicated fans.