Chiliz has introduced a World Cup campaign that will remove up to 10% of treasury-held Fan Tokens per match victory as participating national teams progress through the tournament.
Summary
- Chiliz has launched a World Cup campaign that burns Fan Tokens from treasury reserves when participating national teams win matches.
- Burn rates start at 1% during the group stage and rise to 10% for a victory in the tournament final.
- Argentina, Belgium, Portugal, South Africa, and Scotland Fan Tokens are included in the performance linked tokenomics program.
According to a June 11 press release shared with crypto.news, the new initiative, called โBurn to Glory,โ ties Fan Token supply reductions directly to results achieved by selected national football teams during the upcoming FIFA World Cup.
The program covers Fan Tokens linked to Argentina ($ARG), Belgium ($BELG), Portugal ($POR), South Africa ($SAFA), and Scotland ($SFA). Under the mechanism, tokens held in treasury reserves will be permanently destroyed after each tournament win, with burn rates increasing as teams move deeper into the competition.
At the opening stage of the tournament, each victory will trigger a 1% burn from treasury reserves. Figures released by Chiliz show the percentage rising to 2% in the Round of 32, 2.5% in the Round of 16, 5% in the quarter-finals, 7.5% in the semi-finals, and 10% for a victory in the final.
Because the tokens are removed from treasury holdings rather than circulating supply, the company said successful teams would see their future token supply ceilings reduced while existing holders retain their balances.
Performance-based token burns enter the World Cup
โFootball fans live every result, every knockout match and every big moment. Through Burn to Glory, those moments can now have a direct impact on the Fan Token economy,โ Chiliz CEO and founder Alexandre Dreyfus said in an accompanying statement.
Dreyfus added that the World Cup will be the first major international tournament where the company deploys blockchain-based supply mechanics tied directly to sporting performance. He added that the campaign demonstrates how Fan Tokens are evolving beyond fan engagement products and can increasingly mirror events taking place on the pitch.
Information provided by Chiliz shows that all burns will be executed through on-chain transactions from treasury reserves, allowing token removals to be publicly verified on the blockchain.
The company also said that increasing burn percentages throughout the tournament could create additional interest around matches with larger potential supply reductions. At the same time, shrinking treasury reserves after victories would lower the maximum future supply available to the market.
Expansion follows recent Fan Token initiatives
Beyond the burn campaign, Chiliz noted that several international Fan Tokens, including $ARG, $POR, $SAFA, and $SFA, have recently been expanded onto the Solana blockchain as part of the firmโs omnichain strategy.
The latest announcement follows other recent Fan Token initiatives from the company. Earlier this year, Chiliz launched Champions League Final trading competitions involving Paris Saint-Germain ($PSG) and Arsenal ($AFC) Fan Tokens across the Solana and Base networks.
Alongside those efforts, the company has continued public testing of Fan Token Play, a mint-and-burn framework designed to connect token supply dynamics with team performance.
Under the campaign rules released by Chiliz, only official menโs first-team World Cup matches will qualify for token burns. Friendly fixtures, exhibition games, academy competitions, womenโs matches, and pre-season events will remain outside the program.