Fandom is an asset class. On-chain platforms like Sorare and Chiliz tokenize fan engagement, creating liquid markets for influence and access previously locked in centralized databases.
gaming-and-metaverse-the-next-billion-users
Blog
The Future of Fandom: Speculative, Participatory, and On-Chain
Passive viewership is dead. We analyze the on-chain primitives—prediction markets, governance tokens, and dynamic NFTs—that will transform esports fans into active stakeholders and speculators.
introduction
THE SHIFT
Introduction
Blockchain transforms passive fandom into a high-agency, high-stakes economic layer.
Speculation drives participation. The financialization of fandom via prediction markets like Polymarket and collectible NFTs creates a flywheel where economic interest deepens emotional investment, not replaces it.
Protocols own the relationship. Projects like Open Loyalty bypass traditional intermediaries, allowing creators to issue programmable assets directly to fans, reshaping royalty and revenue models at the base layer.
thesis-statement
THE SHIFT
Thesis Statement
Blockchain technology is transforming fandom from a passive, consumptive state into a speculative, participatory, and on-chain asset class.
Fandom is an asset class. The core value of a community—its attention, identity, and collective action—is now a tradable, programmable financial primitive, moving beyond simple merchandise to on-chain assets like NFTs and social tokens.
Participation drives speculation. The fan-as-investor model creates a direct feedback loop where community engagement (e.g., governance votes on Snapshot, content creation) directly influences the speculative value of the fandom asset, unlike traditional equity with no governance rights.
On-chain is the settlement layer. Platforms like Sorare and Chiliz demonstrate that fan interactions—collecting, trading, voting—require a neutral, user-owned settlement layer; centralized databases fail to provide verifiable ownership or composable utility across applications.
Evidence: The $CHZ fan token ecosystem facilitated over $400M in fan governance votes in 2023, proving that programmable participation has tangible, measurable economic weight beyond social media likes.
key-trends
FROM PASSIVE CONSUMERS TO ACTIVE STAKEHOLDERS
Key Trends: The Three Pillars of On-Chain Fandom
Blockchain transforms fandom from a spectator sport into a capital asset, creating new economic and governance models for community engagement.
01
The Problem: Illiquid, Unverifiable Collectibles
Traditional digital collectibles are locked in corporate databases with zero resale value and no proof of authenticity. The Solution: Fractionalized, On-Chain Assets.
- Tokenized Moments: A game-winning shot becomes a dynamic NFT with embedded royalties.
- Programmable Scarcity: Supply is algorithmically controlled, creating verifiable digital rarity.
- Secondary Market Liquidity: Fans can trade stakes in assets on platforms like OpenSea and Blur, creating a $20B+ NFT market.
$20B+
Market Cap
100%
Verifiable
02
The Problem: Zero-Sum Fan Engagement
Liking and sharing content creates no lasting equity for the fan. Engagement is a one-way value transfer to the platform. The Solution: Stakeholder Economics via Fan Tokens.
- Governance Rights: Holders of $CHZ (Chiliz) or similar tokens vote on club decisions, from jersey designs to friendlies.
- Direct Monetization: Fans earn yield by staking tokens or providing liquidity, aligning financial success with fandom.
- Access-as-a-Service: Token-gated experiences (e.g., POAP for event proof) create exclusive utility, moving beyond mere speculation.
1M+
Token Holders
Direct
Value Capture
03
The Problem: Fragmented, Ephemeral Communities
Discord servers and subreddits lack persistent identity and portable reputation. Contributions vanish. The Solution: On-Chain Reputation & Co-creation.
- Soulbound Tokens (SBTs): Non-transferable badges (e.g., Galxe) prove long-term membership and contributions.
- Crowdsourced IP: Projects like Krause House (DAO to buy an NBA team) allow fans to co-own and steer real-world assets.
- Composable Fandom: Your rep and assets from one community (e.g., FWB) become credentials in another, building a persistent social graph.
Persistent
Identity
Co-own
Real Assets
FROM COLLECTIBLES TO GOVERNANCE
The On-Chain Fandom Tech Stack: A Comparative Analysis
A technical breakdown of the core infrastructure enabling new fan engagement models, moving beyond static NFTs to dynamic, participatory ecosystems.
| Core Capability | Collectible-First (e.g., OpenSea, Blur) | Utility-First (e.g., Galxe, Layer3) | Protocol-First (e.g., FWB, Krause House) |
|---|---|---|---|
Primary Asset Type | ERC-721/1151 (Static NFT) | ERC-20 (Points/Social), SBTs | ERC-20 (Governance Token), NFTs |
On-Chain Proof Standard | Ownership (ERC-721) | Participation (EIP-712 Signatures, Proof of Attendance) | Contribution (Custom Reputation/Delegation) |
Governance Mechanism | None (Secondary Market Voting) | Off-Chain Snapshot (Token-Gated) | On-Chain Treasury & Proposals (e.g., Snapshot, Tally) |
Economic Model | Creator Royalties (0.5-10%) | Quest Rewards, Airdrop Farming | Treasury-Funded Grants, Revenue Share |
Interoperability Layer | Marketplace Aggregators (Gem) | Credential Networks (Ethereum Attestation Service) | Cross-Chain Governance (Hyperlane, Axelar) |
Avg. User On-Chain Tx Cost | $5-50 (Mint/Transfer) | < $1 (Signature Verification) | $10-100+ (Vote Execution, Proposal Submission) |
Sybil Resistance | Wallet-Level (Cost of Mint) | Credential Graph Analysis, Captcha | Token-Weighted, Delegated Reputation |
deep-dive
THE NEW FAN ECONOMY
Deep Dive: The Mechanics of Speculative Participation
Speculative participation transforms passive fans into active, financially-aligned stakeholders through on-chain assets and governance.
Speculation funds participation. Fans purchase tokens or NFTs not for pure profit, but to fund the creator or team they support, creating a direct economic feedback loop. This capital funds development, marketing, and community rewards, aligning financial success with project success.
Participation drives speculation. Active engagement—voting on proposals, creating content, or staking assets—increases the utility and scarcity of the fan asset. This creates a virtuous cycle where participation boosts asset value, attracting more capital and higher-quality contributors.
On-chain assets are the primitive. NFTs from platforms like Sorare or Chiliz encode fandom rights, while fungible tokens on Layer 2s like Arbitrum enable micro-transactions for governance and rewards. These assets are composable, programmable equity.
Evidence: Friend.tech demonstrated this model, where key purchases funded creators directly and granted exclusive access, generating over $50M in protocol fees in its first months. The activity was the speculation.
risk-analysis
THE FAILURE MODES
Risk Analysis: Why This Could All Go Wrong
On-chain fandom transforms passive consumers into active stakeholders, but this new paradigm introduces novel and systemic risks that could derail adoption.
01
The Speculation Trap
When fan tokens become primarily financial instruments, the community devolves into a mercenary capital pool. This alienates genuine fans, creates volatile boom-bust cycles, and attracts regulatory scrutiny as unregistered securities.
- Key Risk: Community becomes a pump-and-dump scheme, destroying long-term value.
- Key Risk: SEC/ESMA classification as a security could freeze major markets.
- Key Risk: >80% token price volatility during off-seasons or poor performance erodes trust.
>80%
Price Volatility
SEC/ESMA
Regulatory Target
02
The Governance Illusion
Voting on minor perks (e.g., jersey color) creates a facade of control while core IP and financial decisions remain off-chain. This leads to voter apathy and exposes the fundamental power imbalance between fans and rights holders.
- Key Risk: <5% voter turnout on "meaningful" proposals reveals systemic apathy.
- Key Risk: Sybil attacks and whale dominance distort "community" decisions.
- Key Risk: Legal liability for DAOs making commercial decisions remains a multi-jurisdictional minefield.
<5%
Voter Turnout
Sybil/Whale
Governance Capture
03
Infrastructure Fragility
Dependence on a specific L1/L2 chain creates single points of failure. If the underlying chain faces congestion, high fees, or a security breach, the fan experience collapses. Cross-chain interoperability for assets and votes remains a complex, risky endeavor.
- Key Risk: $10+ transaction fees during peak moments price out casual fans.
- Key Risk: Bridge hacks (e.g., Wormhole, Poly Network) could permanently destroy fan asset vaults.
- Key Risk: Chain-specific ecosystems (e.g., Flow for NBA Top Shot) create walled gardens and limit composability.
$10+
Peak TX Fee
Bridge Risk
Asset Loss
04
The Legal Black Hole
Intellectual Property law moves at geological speed versus blockchain's pace. Smart contracts that auto-execute royalties or IP licensing clash with real-world contract law, creating unenforceable or illegal obligations. Rights holders will litigate, not integrate.
- Key Risk: Irrevocable on-chain licenses conflict with termination clauses in traditional law.
- Key Risk: Global compliance for financialized fan access is impossible (see GDPR, OFAC).
- Key Risk: Class-action lawsuits from fans claiming token devaluation due to mismanagement.
GDPR/OFAC
Compliance Hurdle
IP Law
Fundamental Clash
future-outlook
THE FANDOM
Future Outlook: The 2025 On-Chain Arena
Fandom evolves from passive consumption to a speculative, participatory, and on-chain economic layer.
Fandom is an asset class. Fan tokens and collectibles transition from static NFTs to dynamic assets with cash flow rights, enabled by on-chain royalties and revenue-sharing pools via protocols like Chiliz Chain and Sorare.
Participation drives protocol growth. Communities will govern IP, fund projects, and curate content using DAO tooling from Syndicate or Tally, turning fans into active stakeholders rather than passive consumers.
The speculative layer dominates. The primary engagement shifts from watching games to trading player performance derivatives, a market propelled by prediction platforms like Polymarket and Azuro.
Evidence: Fantasy sports platform Sorare's $4.3B valuation demonstrates the market's valuation of on-chain, tradable fandom as a core business model.
takeaways
THE FUTURE OF FANDOM
Key Takeaways for Builders and Investors
The next wave of digital fandom will be built on programmable ownership, moving from passive consumption to active, on-chain participation.
01
The Problem: Fragmented, Illiquid Fan Assets
Today's fan tokens and collectibles are trapped in walled gardens with zero composability and ~90% illiquidity. This kills utility and long-term value.
- Solution: Build on open, interoperable standards like ERC-1155 and ERC-6551.
- Benefit: Enable assets to interact across platforms (e.g., gaming, DeFi, social) and accrue value through programmable royalties.
90%+
Illiquid Assets
ERC-6551
Key Standard
02
The Solution: On-Chain Participation as a Service
Fandom is about action, not just ownership. Protocols must abstract complexity to enable seamless fan engagement.
- Model: Look to Layer3 app-chains (e.g., Sorare, Krause House) for custom governance and economics.
- Tooling: Integrate account abstraction (ERC-4337) for gasless interactions and intent-based relays (like UniswapX) for optimal fan rewards.
ERC-4337
Gasless UX
L3
App-Chain Model
03
The Metric: Value Accrual to the Community Treasury
Sustainable fandom economies require value to flow back to the core community, not just speculators.
- Mechanism: Implement protocol-owned liquidity and revenue-sharing DAOs (see FWB, Nouns).
- Outcome: Shift from extractive NFT drops to perpetual funding models where >20% of secondary sales fund community initiatives.
20%+
Royalty to DAO
POL
Key Model
04
The Risk: Regulatory Overreach on Utility Tokens
Fan tokens that promise financial returns are a primary target for the SEC's Howey Test. Pure utility is the only defensible path.
- Strategy: Design tokens as non-transferable reputation/access passes (SBTs) or with strict utility gating.
- Precedent: Follow NBA Top Shot's model of emphasizing collectibility and experience over investment.
Howey Test
Key Risk
SBTs
Defensive Play
05
The Infrastructure: Dedicated Data Availability Layers
High-frequency fan interactions (voting, gaming) require cheap, fast data posting that Ethereum L1 cannot provide.
- Requirement: ~$0.01 per transaction and sub-2 second finality for a seamless experience.
- Stack: Build on Celestia, EigenDA, or Avail for scalable, modular data availability, keeping settlement on Ethereum.
<$0.01
Target Cost
Celestia
DA Example
06
The Blueprint: Look to Fantasy Sports & Prediction Markets
The most potent on-chain fandom will merge skill-based engagement with speculative skin-in-the-game.
- Convergence: Platforms like Sorare (fantasy) and Polymarket (prediction) show the model.
- Opportunity: Build vertical-specific oracles (e.g., SportX, Rage Trade) to power verifiable, real-world outcomes for fan leagues and contests.
Sorare
Live Model
Polymarket
Speculation Model
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$20M+
TVL Overall