Chiliz Introduces Gamified Fan Token Play: Burn on Loss, Mint on Win

Chiliz has announced the next step in the evolution of digital sporting assets via the rollout and trial phase of Fan Token Play.

Fan Token Play directly ties on-field performance to on-chain markets by burning tokens (removing them from the supply) when a team wins, and minting tokens (creating new ones) when a team loses.

The new mechanic makes token supply a direct algorithmic function of a team’s on-field performances, creating an asset-class independent of broader markets, with its own distinct logic and rationale.

Now, more than ever before, football fans can truly benefit when their team succeeds because a club on a winning run will see its token supply decrease and its scarcity increase, as its on-chain economics directly mirror the value of consistent success.

Founder & CEO of The Chiliz Group, Alexandre Dreyfus, said: “Fan Token Play represents the biggest evolution of our Fan Token model since the launch of our first tokens more than six years ago. It transforms passive support into something dynamic, interactive, and directly connected to performance on the pitch.

“By introducing real-time, on-chain mechanics and algorithmic supply adjustments, we’re bringing the emotional highs and lows of sport into the token economy—creating a system that is as responsive and unpredictable as the game itself, while setting a new benchmark for blockchain applications in sports and entertainment,” Dreyfus added.

How Fan Token Play Works

Fan Token Play is enabled by a transparent and tamper-proof system of smart contracts and oracles which automatically respond to match results in real-time.

The core mechanics at the center of Fan Token Play are currently being trialled through a series of public execution flows across live markets. 

Protocol-Level Treasury Governance

A dynamic supply model responding directly to game data. Each adjustment is determined algorithmically accounting for the binary result (Win/Loss).

After every competitive first-team match, supply adjusts automatically:

• WIN – Tokens are permanently burned, thus reducing total supply.
• LOSS – New tokens are minted, increasing supply.
• DRAW – Total supply remains unchanged.

All mint and burn supply changes are executed directly via treasury-controlled smart contracts. Future plans include integration of on-chain oracles to deliver verified match data directly tied to Chiliz Chain, ensuring a transparent, tamper-proof system.
To support the long-term balance and prevent extreme fluctuations, this model also includes:

• Minimum Supply Level: If total supply reaches a 75% net reduction or the treasury hits 0%, burning ceases.
• Credit Burns: Wins achieved while at the stop-loss limit generate “burn credits” that offset future minting requirements if the team loses.
• Vesting Cap: Where applicable, treasury tokens released into the market are capped at 12.5% of the current treasury balance per year.

Alongside match-based adjustments, a variable annual inflation rate linking to overall season performance of 1-5% is included—factoring in longer-term performance, keeping the token economy active and responsive throughout the year.

Under Consideration: Prediction Market-Based Supply Management

Chiliz is also considering an additional development that would see Fan Token supplies linked to decentralized finance prediction markets.

This approach introduces a more market-driven way for supply to adjust around match outcomes.

While both mechanisms are being trialled, this model remains under evaluation as testing continues.

The Future of SportFi

Fan Token Play stands to be a major turning point in the arena of sport finance (SportFi) because it finally makes the link between the sports field and the blockchain concrete.

Instead of Fan Tokens having static supply, supply would now change automatically based on match results, giving the asset class its own sport-driven logic. 

With the rollout of Fan Token Play, Chiliz is in the process of changing the very game it created – for the better.

The official Press Release can be read here.