Chiliz, the blockchain platform behind the CHZ token, has announced a substantial overhaul of its token economics, marking the transition from version 1.0 to a more advanced 2.0 model. This move is aimed at adapting to the growing needs of the platform’s community and ecosystem, and comes as the Chiliz Chain concludes its first year of operation. The new strategy is focused on improving participation in governance, fostering community involvement, and ensuring the sustainability of the ecosystem over the long term.
Revamping Token Economics for Sustained Growth
The redefined Chiliz Chain Tokenomics 2.0 introduces a diminishing annual inflation rate coupled with a constant token burning mechanism, both of which are designed to incentivize long-term stakeholder engagement and more active community participation. The initial tokenomic structure of Chiliz Chain encountered challenges in maintaining long-term commitment from its community, prompting this significant update. The latest model is set to strengthen CHZ’s utility within the ecosystem, aligning with global Layer 1 network strategies.
By enhancing token utility and promoting sustainable growth, the Chiliz Chain is poised to consolidate its role as a prominent blockchain platform for the sports and entertainment sectors. The new tokenomic model aims to provide greater rewards for community engagement, thereby ensuring the ongoing development and funding of the ecosystem.
New Supply Strategy to Boost DeFi Integration
In addition to these changes, Chiliz has also released a supply roadmap for the Chiliz Chain. The roadmap outlines a strategic allocation of newly minted tokens: 65% to validators/delegates, 10% to the community treasury and liquidity providers, and the remaining 25% to support the ecosystem’s operations. This allocation is intended to stimulate DeFi integration within the platform, strengthen community bonds, and guarantee continuous funding for ecosystem and community projects.
The upgraded tokenomics framework and supply strategy together represent a forward-looking approach to securing the Chiliz Chain’s future, enhancing its appeal to both existing stakeholders and prospective members of the ecosystem.