August 2025: PEPPER8 Proposal
Governance Proposal is live! Hardfork date will be announced shortly.
Announcement: Transition of Paribu Net into the Chiliz Chain
This announcement constitutes an executive summary of the governance proposal submitted by the Chiliz Group for the transition of Paribu Net into the Chiliz Chain. This proposal is a coordination mechanism for a socially accepted upgrade path; as with any open network, any validator may elect not to upgrade, and canonicality ultimately rests on social consensus.
Purpose of the Proposal
In line with our commitment to ecosystem development and infrastructure efficiency, the Chiliz Group has reached an agreement that can lead to the integration of Paribu Net into the Chiliz Chain, if approved by the governance of the chain. This strategic move involves the discontinuation and deprecation of Paribu Net’s validator operations and native token ($PRB), with a corresponding migration of user balances and economic activity to the Chiliz Chain, using $CHZ as the unified native token. Acceptance of this transition is ultimately a social choice of the Chiliz Chain community, expressed through validator upgrades under delegated staking.
This process is governed by a formal governance proposal and, if successful, will be executed via a one-time, protocol-level state transition on the Chiliz Chain, ensuring a seamless user experience and long-term alignment with ecosystem goals. This proposal aims to provide Chiliz Group with the necessary $CHZ resources to complete the integration of Paribu Net within the Chiliz Chain and formally sanction the collaboration between Paribu and the Chiliz Group to enable sports fans all over the world to access enhanced utilities for Fan Tokens. By transitioning its blockchain network into the Chiliz Chain, Paribu joins the Chiliz Group’s efforts to make the Chiliz Chain the blockchain ecosystem where the future of SportFi will be built.
This new milestone in the development of the Chiliz Chain ecosystem implies the technical transition from $PRB tokens on Paribu Net to $CHZ tokens on the Chiliz Chain via an irregular state transition process, and the deactivation of Paribu Net by turning the network into a read-only archive, as described below.
What is Paribu Net?
Paribu Net is a public EVM-compatible Layer 1 blockchain network launched in March 2022 by Paribu, a centralized crypto-asset exchange. Paribu Net relies on a hybrid consensus mechanism based on the Delegated Proof of Stake (dPoS) and Proof of Authority (PoA) consensus mechanisms, where validators must stake $PRB, the native token of Paribu Net, to participate in the chain’s consensus mechanism and governance.
Transition of $PRB into $CHZ
The first step to ensure a smooth transition of Paribu Net into the Chiliz Chain consists of updating $PRB token holders' balances on Paribu Net to the equivalent balance of $CHZ tokens on the Chiliz Chain. To this end, the governance proposal aims to inflate the circulating supply of $CHZ tokens by the amount of tokens obtained after applying the fixed ratio determined for the conversion of $PRB to $CHZ via an irregular state transition process.
An irregular state transition process usually requires a snapshot to determine token holder balances, e.g., to determine $PRB token holder balances on Paribu Net. However, Paribu operates as a centralized exchange platform for crypto-assets and holds in custody the integral token supply of $PRB, which is exclusively tradable on the Paribu exchange and cannot be withdrawn from Paribu’s exchange platform. Hence, a snapshot would only reveal Paribu’s wallet addresses and balances on Paribu Net.
As part of the protocol integration of Paribu Net into the Chiliz Chain, balances corresponding to $PRB, held in custody by Paribu, will be updated on the Chiliz Chain to reflect their representation in $CHZ, as defined by the proposed conversion ratio and implemented via a governance-approved protocol state adjustment.
For this reason, the transition of $PRB tokens to $CHZ tokens does not require the execution of a snapshot; instead, to facilitate the transition, a fixed conversion ratio for the migration of $PRB to $CHZ was proposed by the integration parties and submitted for approval through the Chiliz Chain governance process, with the intention to apply this fixed ratio to the integral $PRB token supply.
If the governance proposal submitted to the Chiliz Chain’s validators is approved, an irregular state transition process will be implemented on the Chiliz Chain, through which the total amount of $CHZ tokens corresponding to the amount of $PRB tokens held by Paribu will be inflated and injected into the Chiliz Chain wallet address 0xE0d17A41C1A4Fe527e375C644F9D2A02e96111ED, according to the fixed conversion ratio agreed upon between Paribu and the Chiliz Group. The $CHZ token balance of this wallet address will be updated to reflect the full amount of $CHZ tokens inflated in the block height of implementation of the irregular state transition.
This logic will be encoded in a hard fork update to the Chiliz Chain’s consensus client, which will be scheduled as per the governance process (see Section below related to the Governance Process). No validator is compelled to upgrade; any party may run alternative client software. Canonicality follows the client adopted by the social majority of validators. This hard fork update is required because $CHZ was issued directly at the protocol level (not via smart contracts); hence, inflating and injecting the corresponding amount of $CHZ tokens implies modifying the state trie of the Chiliz Chain in the client software itself, without transaction execution.
Implications for $CHZ tokenomics
The 2024 “Dragon8” hard fork has introduced new tokenomics for $CHZ tokens and implemented a decreasing inflationary supply model, with an initial annual base inflation of 8.80% in year 1, dynamically decreasing over time until stabilizing at 1.88% (inflation floor) after 14 years. Hence, the inflation rate is dynamically decreasing over time as per the following schedule:
1
8,888,888,888
8.80%
2
9,670,766, 153
7.20%
3
10,367,481,346
5.96%
4
10,985,867,079
5.00%
5
11,535,073,210
4.25%
6
12,025,002,873
3.66%
7
12,465,325,130
3.21%
8
12,864,922,473
2.85%
9
13,231,636,833
2.57%
10
13,572,204,456
2.36%
11
13,892,300,200
2.19%
12
14,196,637,909
2.06%
13
14,489,093,265
1.96%
14
14,772,829,365
1.88%
+
+
1.88% ∞
The amount of $CHZ tokens issued at the protocol level in application of this governance proposal will be deducted from the total amount of new tokens inflated between Year 3 and Year 7 by decreasing the inflation rate applicable each year until the Initial Supply matches the Initial Supply schedule implemented by the Dragon8 hard fork, which will happen in Year 8. If this governance proposal is approved, the new inflation rates will be as follows:
1
8,888,888,888
8.80%
2
9,670,766, 153
7.20%
3
10,516,081,346
5.530%
4
11,097,672,571
4.654%
5
11,614,200,441
3.967%
6
12,074,978,847
3.430%
7
12,489,101,533
3.009%
8
12,864,922,473
2.85%
9
13,231,636,833
2.57%
10
13,572,204,456
2.36%
11
13,892,300,200
2.19%
12
14,196,637,909
2.06%
13
14,489,093,265
1.96%
14
14,772,829,365
1.88%
+
+
1.88% ∞
From Year 8 onwards, the amount of Initial Supply, the inflation rate, and the total supply of $CHZ tokens will be aligned with the original inflation schedule implemented in CHZ Tokenomics 2.0. This governance proposal will therefore have no long-term effects on the supply of $CHZ tokens, ensuring consistency with the Chiliz Group’s values and mission to develop the Chiliz Chain ecosystem.
Deactivation of Paribu Net
Following the protocol-level issuance of $CHZ corresponding to the custodial $PRB supply, Paribu will transition the Paribu Net into an inactive state by:
Publicly announcing the transition of Paribu Net into the Chiliz Chain.
Disabling validator consensus by pausing block production at a certain block height.
Disabling all token transfers and smart contract execution via a final protocol update.
Communicating with infrastructure providers and other third parties involved in economic and/or commercial activities concerning $PRB and the Paribu Net to ensure such activities are discontinued and $PRB and Paribu Net are no longer accessible via user interfaces.
Once fully implemented, the $PRB token will no longer be transferable on Paribu Net nor recognised in any active blockchain environment, although it will continue to exist on Paribu Net. All Paribu Net operations, staking, governance, and application activity will be conducted exclusively on the Chiliz Chain using $CHZ as the native token. Paribu will sunset Paribu Net’s brand and infrastructure, and the final state of Paribu Net will remain as a read-only archive.
Governance Process
Following this announcement, a formal governance proposal will be submitted to the Chiliz Chain’s validators according to the rules of the Chiliz Chain’s governance. The content of this proposal will notably include:
A description of the migration plan.
The inflation parameters.
The wallet address to which the inflated $CHZ supply will be injected.
The hard fork block height and upgrade schedule.
A statement that canonicality is a social-layer determination: the upgrade is recognized when a majority of independent validator voting power signals and runs the release implementing the state transition.
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