NFTs
“There’s no CEO authorising spending based on their own whims – and no dodgy CFO manipulating the books”
“There’s no CEO who can authorise spending based on their own whims – and no chance of a dodgy CFO manipulating the books,” asserts crypto platform Ethereum. “Everything is out in the open and rules around spending are baked into the DAO via its code.” Digital tokens are already being issued by sports clubs to let fans have some influence on decisions regarding the team. Socios – which borrows its name (and the kernel of its concept) from the Spanish word for members of supporter-run clubs such as Barcelona – is one of the biggest fan token platforms. It manages tokens and rewards for dozens of Europe’s top clubs, including Arsenal, PSG, Man City, Juventus, Atlético Madrid, AC Milan and Barcelona.
is decentralised and the rewards are evenly distributed. There is a raging debate about whether Web3 truly is the saviour of humankind’s inequitable socio- economics, but we are going to concentrate specifically on Web3’s potential to bring about change in sports. The main focus is on decentralised autonomous organisations (DAOs), a form of blockchain-based company that is often focused on NFTs. It is crowdfunding meets membership meets corporate governance, all with a crypto twist. DECENTRALISED AUTONOMOUS ORGANISATIONS The clue is in the name: these are member-owned communities without centralised leadership. Decisions are made by all members in a voting process enshrined in a smart contract. This defines the rules of the organisation and holds the group’s treasury, so DAOs don’t need a central authority. Instead, the group makes decisions collectively. Purchase of NFTs can secure membership, but there are other ways to set up a DAO, including with shares.
48 FEED:XTREME SEPTEMBER/OCTOBER 2022
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