Technically speaking, a crowd contract is a digital contract offer to one recipient (eg, a player) from a large group of funders (eg, an entire fanbase). Like any contract, both sides have to fulfill their conditions for the contract to execute.

In the case of Nilli, if a player does not fulfill the conditions of the contract (such as playing another year for the team), then each fan will be automatically refunded their stake.

Every contract has a listed target, which is determined by the contract creator. This may be a set amount, or it may be calculated by Nilli to surpass a pro offer. For example, if a player is expected to be a mid 2nd round pick, the target may be their projected rookie salary of $1.4 (NFL) or $900K (NBA).

Most importantly: A better team!

But secondarily, as part of the process of signing their crowd contract offer, players issue an NFT to all of the contract’s signers. This digital asset might evolve into a certified digital “rookie card” that can be sold on marketplaces like OpenSea or a pass that players can use to drop merch to top fans. There are no standards – it is all up to each player’s imagination.

The contract length and expiration is entirely determined by the contract creator. For example, in a contract for a player to come back for football in the 2023 season, the contract may be set to expire as soon as a player is officially enrolled on another NCAA roster or an NFL roster. All expiration conditions will be clearly listed on the Nilli platform.

As soon as the refund condition of a contract is met (for example, a player is listed on an NFL roster), the smart contract technology will automatically refund the full amount back to each fan’s Nilli wallet. Fans can then use Nilli to convert and send those digital funds to a bank account of their choice.

As smart contracts on Ethereum, crowd contracts are not controlled by Nilli, the fans, or even the contract creators. Instead, the locking, unlocking, and refunding of funds are all managed by automated, irreversible code. This keeps everything safe and fair for fans and players.

No! It is always possible to sign a crowd contract without staking funds to it. This lets you become part of the movement for your players and team no matter what your situation. In fact, some contracts (like those for high school recruits) are totally non-monetary, and just about showing more love than the competition.

Crowd contracts are powered by blockchain smart contract technology. This means that not only digital versions of dollars, but other digital assets like Ethereum, Bitcoin, and NFTs can be staked to a players crowd contract. Besides allowing more fans to get in, this also produces a diversified portfolio for players who are increasingly interested in cutting-edge forms of assets.