Socios Tokens Jump Over 40% After Chiliz Announces Mainnet Upgrade And Token Burn Plan

Socios Tokens Jump Over 40% After Chiliz Announces Mainnet Upgrade And Token Burn Plan

In times of great stress and market turbulence, sports entertainment has served as a valuable escape for people all over the world, giving them the chance to cheer on their favorite players and teams while briefly forgetting about the world’s concerns.

Amid the current market volatility and falling cryptocurrency prices, sports fans have reason to rejoice as multiple fan tokens bucked the downtrend on May 18 to post gains of over 40%.

Top 7 coins with the highest price change in 24 hours. Source: Cointelegraph Markets Pro

Here’s a look at the recent events that have helped propel Paris Saint-Germain (PSG), Juventus (JUV), FC Barcelona (BAR) and other fan tokens to the top of the charts today.

Chiliz testnet phase 2

The biggest boost for fan tokens appears to come from new developments in the Chiliz protocol, which operates Socios, a Socios blockchain-based sports entertainment platform.

On May 17, Chiliz revealed the launch of Jalapeño, the second phase of its Scoville testnet, which is part of the broader Chiliz mainnet launch.

Some of the new features included for testing in Phase 2 include the launch of PepperSwap, which will provide a decentralized exchange, and cos fan token test polls that will allow token holders to start participating in government polls and votes on the protocol.

Eventually, users will be able to engage with the community of specific fan tokens and vote on the developments they would like to see for that club through fan token polls, which is one of the features that many investors were initially interested in.

Fan tokens appear on a new exchange

A new listing on BitPanda could be another reason fan tokens surged on May 18.

According to BitPanda’s Twitter, at least 7 fan tokens are listed on May 18.

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Token burning reduces supply

Another factor providing a boost to fan token prices is the Chiliz Head2Head burn competition, which burns a portion of the circulating token supply based on the results of live matches between clubs.

Based on this design, the Head2Head burn mechanism will affect a project’s tokenomics over time by helping to reduce the supply of tokens in circulation, which has the potential to result in a price increase if demand remains high. .

It also provides a way to see a team’s performance reflected in their token supply, as better performing teams will see more of their token supply burned. If the Head2Head burn process proves effective, it could increase the value of certain equipment due to reduced circulating supply.

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