MENGO MiCA White Paper
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| 00 | Table of content |
II. Summary Part A: Information about the offeror or the person seeking admission to trading Part B: Information about the issuer, if different from the offeror or person seeking admission to trading Part C: Information about the operator of the trading platform in cases where it draws up the crypto-asset white paper and information about other persons drawing the crypto-asset white paper pursuant to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114 Part D: Information about the crypto-asset project Part E: Information about the offer to the public of crypto-assets or their admission to trading Part F: Information about the crypto-assets Part G: Information on the rights and obligations attached to the crypto-assets Part H: Information on the underlying technology Part I: Information on the risks Part J: Information on the sustainability indicators in relation to adverse impact on the climate and other environment-related adverse impacts |
| 01 | Date of notification |
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| 02 | Statement in accordance with Article 6(3) of Regulation (EU) 2023/1114 |
The offeror of the crypto-asset is solely responsible for the content of this crypto-asset white paper. |
| 03 | Compliance statement in accordance with Article 6(6) of Regulation (EU) 2023/1114 |
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| 04 | Statement in accordance with Article 6(5), points (a), (b), (c), of Regulation (EU) 2023/1114 |
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| 05 | Statement in accordance with Article 6(5), point (d), of Regulation (EU) 2023/1114 |
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| 06 | Statement in accordance with Article 6(5), points (e) and (f), of Regulation (EU) 2023/1114 |
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| 07 | Warning in accordance with Article 6(7), second subparagraph, of Regulation (EU) 2023/1114 |
This summary should be read as an introduction to the crypto-asset white paper. The prospective holder should base any decision to purchase this crypto-asset on the content of the crypto-asset white paper as a whole and not on the summary alone. The offer to the public of this crypto-asset does not constitute an offer or solicitation to purchase financial instruments and any such offer or solicitation can be made only by means of a prospectus or other documents pursuant to the applicable national law. |
| 08 | Characteristics of the crypto-asset |
$MENGO is a crypto-asset used primarily to provide fans with access to exclusive experiences and rewards directly linked to fan engagement activities. Token holders can benefit from a range of Web3 utilities, including access to decentralized applications (dApps), the ability to collect NFTs and digital collectibles and , integration with connected merchandise, and enhancements to the club’s loyalty program. In addition, the token offers more traditional benefits such as hospitality and ticketing privileges, real-life experiences (e.g. Meet and Greets, Matchday access, Play on the Pitch), exclusive signed merchandise, stadium tours, and more. For the avoidance of doubt, the token is not used for payments or value transfer—holders retain full ownership when using its features. Similarly, holders of Fan Tokens do not acquire the right to receive any financial return, dividend, or any right to participate in any voting related to the management, corporate, or strategic matters of CR Flamengo, the Offeror or any affiliated entity. In light of the above, the $MENGO token is a crypto-asset other than asset-referenced token and e-money token. It does not qualify as a utility token under Article 3 of Regulation (EU) 2023/1114, as it is intended to provide access to goods and services that are not exclusively supplied by the Issuer or any entity associated with the Issuer. |
| 09 | Further information about utility tokens |
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| 10 | Key information about the offer to the public or admission to trading |
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| A.1 | Name |
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| A.2 | Legal form | N/A as LEI is provided in A.6 | |||||||||
| A.3 | Registered address | N/A as LEI is provided in A.6 | |||||||||
| A.4 | Head office | N/A as LEI is provided in A.6 | |||||||||
| A.5 | Registration date |
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| A.6 | Legal entity identifier |
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| A.7 | Another identifier required pursuant to applicable national law | N/A as LEI is provided in A.6 | |||||||||
| A.8 | Contact telephone number |
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| A.9 | E-mail address |
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| A.10 | Response time (days) |
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| A.11 | Parent company | N/A as LEI is provided in A.6 | |||||||||
| A.12 | Members of management body |
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| A.13 | Business activity |
The vision of the Socios Technologies AG (Offeror)'s Group is to support the continued growth of Fan Tokens into a world-recognised digital asset class by delivering a range of Fan Token services and features tailored to the global Web3 sports community. Products/Services The Socios.com platform (“Platform”), operated by Socios Europe Services Limited, a limited liability company incorporated and registered in Malta bearing company registration number C-108717 and holding a MiCA-authorization ID number SESL2-25081 (“Operator”), is a utility-centric platform offering a range of utilities and features in relation to Fan Tokens. By creating an account on the Platform and participating in the features it offers, users can earn off-chain reward points that can be redeemed for diverse rewards and in-real-life experiences, such as match tickets and exclusive partner team experiences. In addition, the Platform integrates the Socios.com Wallet, a non-custodial wallet infrastructure that allows users to remain in control of the crypto-assets they hold on the Chiliz Chain. Markets Served Our primary audience comprises individuals aged 18 and above, with intersecting interests in cryptocurrency, Web3 technologies, and sports. The Group’s target markets include the European Economic Area (EEA). Italy and Spain are currently our principal markets in Europe due to the partnership inroads we've made in the respective sports leagues and the growing interest in crypto assets. Beyond the EU, our global Platform aims to cater to fans worldwide, adhering to local regulatory standards. Brazil is particularly significant in our strategic plan. The country's deep football culture and the proactive stance of local authorities and regulators toward blockchain technologies make it an ideal target market. |
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| A.14 | Parent company business activity |
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| A.15 | Newly established |
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| A.16 | Financial condition for the past three years |
Over the past three years, Socios Technologies AG, has demonstrated a clear trajectory toward financial stability, driven by disciplined cost management, strategic growth initiatives, and operational improvements. Following a highly profitable year in 2021, the company faced a net loss in 2022 due to challenging market conditions, rising operating expenses, and significant investments in scaling its business. However, in 2023, decisive measures to enhance efficiency, optimize expenditures, and strengthen revenue streams led to a substantial reduction in losses. By 2024, these efforts had significantly improved financial performance, with key metrics reflecting a strong upward trend:
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| A.17 | Financial condition since registration |
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| N | Field | Content |
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| B.1 | Issuer different from offerror or person seeking admission to trading |
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| B.2 | Name | N/A |
| B.3 | Legal form | N/A |
| B.4 | Registered address | N/A |
| B.5 | Head office | N/A |
| B.6 | Registration date | N/A |
| B.7 | Legal entity identifier | N/A |
| B.8 | Another identifier required pursuant to applicable national law | N/A |
| B.9 | Parent company | N/A |
| B.10 | Members of management body | N/A |
| B.11 | Business activity | N/A |
| B.12 | Parent company business activity | N/A |
| N | Field | Content |
|---|---|---|
| C.1 | Name | N/A |
| C.2 | Legal form | N/A |
| C.3 | Registered address | N/A |
| C.4 | Head office | N/A |
| C.5 | Registration date | N/A |
| C.6 | Legal entity identifier | N/A |
| C.7 | Another identifier required pursuant to applicable national law | N/A |
| C.8 | Parent company | N/A |
| C.9 | Reason for crypto-asset white paper preparation | N/A |
| C.10 | Members of management body | N/A |
| C.11 | Operator business activity | N/A |
| C.12 | Parent company business activity | N/A |
| C.13 | Other persons drawing up the crypto-asset white paper according to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114 | N/A |
| C.14 | Reason for drawing the white paper by persons referred to in Article 6(1), second subparagraph, of Regulation (EU) 2023/1114 | N/A |
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| D.1 | Crypto-asset project name |
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| D.2 | Crypto-asset name |
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| D.3 | Abbreviation |
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| D.4 | Crypto-asset project description |
The $MENGO grants holders a variety of exclusive digital and real-world utilities with the potential of expanding to web3 and DeFi product functionality within the Chiliz Chain ecosystem, transforming passive supporters into active participants in the club's fan communities and digital ecosystems. They can vote on official Flamengo non-managerial decisions through polls on the Socios.com wallet and Platform or through other integrated channels, (with voting power proportional to their holdings). Holding $MENGO also unlocks access to exclusive rewards such as VIP matchday experiences, signed merchandise, and unique opportunities like play at Maracanã Stadium or Meet and Greet with Players of the first team, as well as access to digital experiences and rewards. Through the Socios.com app, fans earn loyalty points redeemable for rewards when engaging with the features of the Fan Token, such as through Fan Token stake and earn. Such reward points can be redeemed for limited-edition items and enhanced utilities available through the dedicated fan shop. $MENGO fan token holders can connect their non-custodial wallet to various dApps available through the integrated dApp browser to enable interaction of the $MENGO tokens with decentralised sports and DeFi platforms within the Chiliz ecosystem. The project's mission is to strengthen the bond between Flamengo and its global fanbase by leveraging Web3 technology to provide meaningful engagement, recognition, and rewards within a secure and transparent framework. As the world of sports and entertainment transitions to Web3, the $MENGO is more than just a crypto-asset—it serves as a gateway to a new era of fandom, enabling supporters to engage with the club in immersive and innovative ways within this new digital realm. Fully aligned with the evolving regulatory landscape, the project emphasizes transparency, user protection, and responsible digital engagement. |
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| D.5 | Details of all natural or legal persons involved in implementation of crypto-asset project |
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| D.6 | Utility token classification |
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| D.7 | Key features of goods or services for utility token projects | N/A | ||||||||||||||||||||
| D.8 | Plans for the token |
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| D.8 | Plans for the token |
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| D.9 | Resource allocation |
Additionally, marketing efforts of Socios Technologies AG and Flamengo in relation to the offering were deployed to drive awareness, foster community engagement, and ensure the successful adoption of the token. |
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| D.10 | Planned use of collected funds or other tokens |
group operational expenses and to ensure ongoing provisioning of utility on the Platform for the $MENGO Fan Token. |
| N | Field | Content |
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| E.1 | Public offering or admission to trading | |
| E.2 | Reasons for public offer or admission to trading |
Community Growth and Fan Engagement:
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| E.3 | Fundraising target |
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| E.4 | Minimum subscription goals | N/A |
| E.5 | Maximum subscription goals | N/A |
| E.6 | Oversubscription acceptance |
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| E.7 | Oversubscription allocation | N/A |
| E.8 | Issue price |
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| E.9 | Official currency determining issue price | |
| E.10 | Subscription fee |
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| E.11 | Offer price determination method |
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| E.12 | Total number of offered or traded other tokens |
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| E.13 | Targeted holders | |
| E.14 | Holder restrictions |
The Offering was only available to users who had created an account on the Socios.com platform at the time of the FTO. All participants were obliged to comply with Socios.com's Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) requirements, including completing all necessary customer due diligence procedures. Additionally, for eligibility purposes, the user must have been at least eighteen years old or of sufficient age to legally obtain and hold Fan Tokens in the user’s jurisdiction, and must not have been a citizen or resident of: (i) an Excluded Jurisdiction; or (ii) any other jurisdiction or territory as outlined in the applicable Terms and Conditions (TCs) for the respective FTO. The user should not have participated in the Fan Token Offering if there were any legal restrictions in the user’s country of residence or domicile. It was the sole responsibility of the user to ensure that their participation in the Fan Token Offering was not prohibited, restricted, curtailed, hindered, impaired, or otherwise adversely affected by any applicable law, regulation, or rule in the user’s country of residence or domicile. |
| E.15 | Reimbursement notice |
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| E.16 | Refund mechanism |
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| E.17 | Refund timeline |
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| E.18 | Offer phases |
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| E.19 | Early purchase discount |
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| E.20 | Time-limited offer |
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| E.21 | Subscription period beginning |
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| E.22 | Subscription period end |
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| E.23 | Safeguarding arrangements for offered funds or other tokens |
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| E.24 | Payment methods for other token purchase |
No other payment methods, including fiat currencies or any other cryptocurrencies, were accepted during the public offer. |
| E.25 | Value transfer methods for reimbursement |
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| E.26 | Right of withdrawal |
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| E.27 | Transfer of purchased other tokens |
FTO mechanics:
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| E.28 | Transfer time schedule |
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| E.29 | Purchaser's technical requirements |
Eligibility and Account Requirements for Participation:
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| E.30 | Other token service provider (CASP) name |
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| E.31 | CASP identifier |
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| E.32 | Placement form | |
| E.33 | Trading platforms name |
Notwithstanding this, STAG does not exclude the possibility of seeking admission to trading on MiCA-compliant trading platforms established in the EU at a future date. |
| E.34 | Trading platforms market identifier code (MIC) | N/A |
| E.35 | Trading platforms access | N/A |
| E.36 | Involved costs |
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| E.37 | Offer expenses |
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| E.38 | Conflicts of interest |
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| E.39 | Applicable law |
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| E.40 | Competent court |
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| N | Field | Content |
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| F.1 | Other token type |
asset-referenced tokens and e-money tokens based on the standard CAP20. This token is permissionless and was issued by Socios Technologies AG in collaboration with $MENGO, and can be used, among other digital platforms, on Socios.com. Its key utility and functionality is to serve as a digital fan engagement tool, granting holders access to token-gated experiences such as voting in club-related polls, earning loyalty rewards, and unlocking exclusive content and benefits—while fostering a closer, non-financial connection between Flamengo and its global fanbase. For the avoidance of doubt, when a user makes use of a $MENGO Fan Token Functionality on the Platform, the $MENGO used to access the token functionality will not be burned, consumed, transferred, or otherwise surrendered but will remain with the user. Accordingly, the $MENGO Fan Token does not function as a means of payment or value transfer, but rather serves as an eligibility criterion to unlock token functionalities made available for the Fan Token holder, subject to the conditions set forth on the Platform with respect to the particular token functionality. Crucially, the $MENGO Token has no legal or otherwise rights or obligations attached to it either by those purchasing the token or the Team the token is issued on behalf of, nor does it entitle holders thereof to participate in any decisions which are ordinarily reserved to corporate bodies or vested in directors and shareholders of either Flamengo or Socios Technologies AG , or their respective affiliates, nor shall it entitle holders to receive any sort of profits generated by Flamengo or Socios Technologies AG , or their respective affiliates. Token Classification: The $MENGO Token is designed as a fungible token that enhances fan engagement and interaction within the Flamengo community. Its primary purpose is to serve as a community-driven token, offering exclusive access, experiences, and participation opportunities within the Flamengo ecosystem. Therefore, $MENGO token falls within the definition of crypto-asset set forth in article 3 of Regulation (EU) 2023/1114) as it is a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology (Chiliz Chain). $MENGO does not purport to maintain a stable value and, thus, it should be classified as a crypto-asset other than asset-referenced token or e-money token. The $MENGO does not qualify as a utility token under Article 3 of the Regulation (EU) 2023/1114, as the associated utilities are not provided exclusively by the Issuer or an entity related to that Issuer. Blockchain: The $MENGO operates on the Chiliz Chain, a fully sovereign EVM-compatible layer 1 blockchain. Allocation and Distribution: A total of 1,500,000 $MENGO tokens were made available during a fair-launch public offer, with the focus of the initial launch being on equitable access for participants. |
| F.2 | Other token functionality |
The $MENGO Fan Token is a utility-based crypto-asset originally issued by Socios Technologies AG on the Chiliz Legacy Chain and subsequently migrated to the Chiliz Chain, an EVM-compatible Layer 1 blockchain designed specifically for the sports and entertainment industry. It is designed to increase community engagement between Flamengo and its global fanbase. The token serves as a digital membership credential that enables users to access token-gated features and exclusive non-financial experiences. Its issuance is linked to the engagement strategy of Flamengo and forms part of a broader initiative to integrate Web3 technology into the fan experience. Utility The functionalities of the $MENGO Fan Token on the Platform depend on the contractual arrangement with the Club’s rights’ holder. These functionalities may include, but are not limited to, participation in polls, access to exclusive content/experiences, and rewards mechanisms through the Platform. Importantly, token holders do not acquire any financial rights, ownership, or entitlements to revenues or intellectual property from Flamengo, Socios Technologies AG, or Socios Europe Services Limited or their respective affiliates. Fan Tokens are not intended to be used as a means of payment or value transfer but are intended for fan engagement purposes. Ongoing and Recurring Rewards for MENGO Fan Token Holders In addition to special activations, $MENGO Fan Token holders regularly enjoy:
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| F.3 | Planned application of functionalities |
decided in the future including the Socios.com fan engagement and rewards platform. The functionalities available shall include, but not be limited to, benefits to be availed of on the Flamengo own platforms. Over time, additional functionalities aimed at enhancing fan engagement with Flamengo may be introduced, further enhancing the token holder experience, on the Socios.com platform or on any other third party platform developed within the Chiliz Chain ecosystem that decides to integrate the $MENGO fan tokens. Such features are subject to change and may be added, modified, or removed at the discretion of the Issuer or the Operator or based on Flamengo instructions. |
| F.4 | Type of crypto-asset white paper | |
| F.5 | Type of submission | |
| F.6 | Other token characteristics |
Name: $MENGO. Type: Crypto-asset other than asset-referenced token or e-money token. Blockchain: Chiliz Chain. Overall Total Token Supply: 30,000,000 $MENGO. Public Offering Token Supply: 1,500,000 $MENGO. Token Standard: ERC-20 equivalent (CAP-20). Classification under MiCA (Regulation (EU) 2023/1114): The $MENGO is classified as a crypto-asset other than asset-referenced token or e-money token. Functionality To provide fans with access to exclusive experiences, rewards, and Web3 utilities, enhancing fan engagement with Flamengo. |
| F.7 | Commercial name or trading name |
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| F.8 | Website of the issuer |
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| F.9 | Starting date of offer to the public or admission to trading |
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| F.10 | Publication date |
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| F.11 | Any other services provided by the issuer |
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| F.12 | Language or languages of the crypto-asset white paper |
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| F.13 | Digital token identifier code used to uniquely identify the crypto-asset or each of the several crypto assets to which the white paper relates, where available |
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| F.14 | Functionally fungible group digital token identifier, where available |
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| F.15 | Voluntary data flag |
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| F.16 | Personal data flag |
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| F.17 | LEI eligibility |
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| F.18 | Home member state | |
| F.19 | Host member states |
| N | Field | Content |
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| G.1 | Purchaser rights and obligations |
Holding or trading the $MENGO Fan Token does not grant governance, profit-sharing, or any analogous economic or corporate rights. Within this framework, purchasers of the $MENGO Fan Token are nevertheless granted limited rights associated solely with the acquisition and use of the token, as described below: Token Allocation: Purchasers were entitled to receive $MENGO tokens in proportion to their $CHZ contribution during the public offer. Participation in a Fair-Launch Public Offer: Purchasers were guaranteed equal access to the public offer, ensuring fairness and preventing over-concentration. Token functionalities: Purchasers have the right to access specific fan engagement functionalities associated with their $MENGO token, as provided on the Platform, along with additional functionalities that may be provided by third parties within the Chiliz Chain ecosystem. Ownership Rights: Upon receipt of the $MENGO Fan Tokens, they could be used on the Platform to access the goods, services, and utilities associated with them. $MENGO Fan Token holders obtained full ownership rights over the tokens, granting them the freedom to either trade them once they were eventually listed and admitted to a trading platform, or continue to hold them and benefit from the utility rights attached to them at their discretion. For the sake of clarity, purchasers have the right to continue holding and trading their $MENGO even if the Fan Token functionalities are modified, expired, or removed as a result of the expiration or termination of the underlying commercial and licensing agreement with the Club’s rights holder. Obligations of the Purchaser:
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| G.2 | Exercise of rights and obligations |
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| G.3 | Conditions for modifications of rights and obligations |
The Offeror reserves the right to change or amend the Terms from time to time. In this case, the Offeror will inform the user about such changes in any manner it deems fit. The Platform operator will further change the “Last Updated” date at the top of the Terms. To the extent permissible by law, any amended Terms shall become effective immediately upon the date indicated in the Terms. The user’s continued use of the Platform after the publishing of the amended Terms constitutes user acceptance of such amended Terms. It is the users responsibility to regularly check to read through such notices and updates. |
| G.4 | Future public offers |
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| G.5 | Issuer retained other token |
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| G.6 | Utility token classification |
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| G.7 | Key features of goods or services utility tokens | N/A |
| G.8 | Utility tokens redemption |
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| G.9 | Non-trading request |
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| G.10 | Other tokens purchase or sale modalities |
As the $MENGO token is a CAP-20 token running on the Chiliz Chain, it is currently possible that $MENGO may also be traded on decentralized exchanges, such as Kayen.org, the largest decentralized exchange native to the Chiliz Chain. For the sake of clarity, such Decentralised Exchanges are not operated in any manner whatsoever by the Offeror or any of their Affiliates. |
| G.11 | Other tokens transfer restrictions |
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| G.12 | Supply adjustment protocols |
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| G.13 | Supply adjustment mechanisms |
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| G.14 | Token value protection schemes |
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| G.15 | Token value protection schemes description |
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| G.16 | Compensation schemes |
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| G.17 | Compensation schemes description |
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| G.18 | Applicable law |
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| G.19 | Competent court |
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| N | Field | Content |
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| H.1 | Distributed ledger technology (DTL) |
The migration was executed in phases between June and September 2023, with all Fan Tokens, including $MENGO tokens, being successfully transferred from the Legacy Chain to the Chiliz Chain by Q1 2024. The migration was split into three steps:
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| H.2 | Protocols and technical standards |
$MENGO is deployed on Chiliz Chain, an EVM-compatible layer-1 blockchain described in the official documentation as a fork of BNB Smart Chain, itself a derivative of go-Ethereum. This heritage means Chiliz Chain inherits Ethereum-style account management, transaction encoding and developer tooling, while operating as a distinct network. Token standard The network’s fungible-asset standard is CAP-20, defined in the Chiliz documentation as Chiliz Chain’s ERC-20-style token standard. CAP-20 is code-equivalent to ERC-20 but enforces zero decimals, so all balances and transfers represent whole-number units. $MENGO is treated as a standard CAP-20 Fan Token implementing the familiar ERC-20-style interface. Interfaces and client standards Wallets and applications connect to Chiliz Chain via standard JSON-RPC and WebSocket endpoints. At protocol level, this means Chiliz Chain follows standard Web3 RPC patterns. Any client that supports custom EVM networks can treat Chiliz Chain as another Ethereum-style chain, provided it uses the documented network parameters. |
| H.3 | Technology used |
The $MENGO token contract runs on the Chiliz Chain client implementation published as open-source software in the chiliz-chain/v2 repository, written in Go. A separate genesis-configuration repository defines the chain parameters and network configuration. Together, these components define the execution and consensus stack within which the $MENGO CAP-20 contract is deployed and executed. Smart-contract platform and execution environment Smart contracts on Chiliz Chain are written in Solidity 0.8.24 and compiled for the Shanghai-equivalent EVM introduced with the Dragon8 upgrade. Dragon8 implemented modern Ethereum proposals such as EIP-1559 and EIP-2718, aligning Chiliz Chain’s fee mechanics and transaction format with Ethereum. All transactions on Chiliz Chain are metered using the EVM gas schedule and settled in CHZ, the network’s native token. The deterministic EVM runtime ensures that, given the same inputs and state, contract execution produces identical results across all validator nodes. Transfer and interoperability technology Before transferring $MENGO, users must hold native CHZ to pay transaction fees. Once funded, the same wallet address receives or purchases $MENGO. Transfers are then executed as standard CAP-20 transactions on Chiliz Chain, with gas paid in CHZ and finality achieved upon block confirmation. Two smart-contract-based bridges maintain liquidity between Ethereum and Chiliz Chain:
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| H.4 | Consensus mechanism |
Chiliz Chain uses Proof of Staked Authority , a hybrid consensus mechanism that combines Proof-of-Authority-style validator rotation with Proof-of-Stake-based weighting and eligibility. A limited set of “Main Validators”, each required to bond CHZ and be approved through on-chain governance, is responsible for proposing and validating blocks, while additional validator candidates can remain in an active queue with bonded stake, ready to replace or supplement the main set as staking weights or governance decisions change. Main Validators take turns producing blocks in a deterministic rotation, rather than open competition, which keeps block times predictable. The Parlia consensus engine coordinates block production and interacts with system contracts that manage staking, validator-set updates, distribution of block rewards and penalties for misbehaving or offline validators. This PoSA design, adapted from BNB Smart Chain, is tuned for short block times, low transaction fees and fast practical finality suitable for consumer-facing applications such as Fan Tokens, while relying on a comparatively small validator set and therefore offering a lower degree of permissionless decentralisation than large, fully open validator networks. |
| H.5 | Incentive mechanisms and applicable fees |
At the network level, the Chiliz Chain employs a gas-based fee model denominated in $CHZ. Every transaction specifies a gas limit and gas price; the product defines the maximum fee the sender is willing to pay. Validators collect these fees as compensation for processing transactions and securing the network. A base-fee adjustment mechanism modulates prices according to block utilisation, keeping costs low and predictable. At protocol level, all on-chain transactions on Chiliz Chain, including $MENGO CAP-20 transfers, pay gas fees in CHZ, the native token. Transactions are priced using standard EVM gas semantics, and since the Dragon8 hard fork the network supports EIP-1559-style type-2 transactions with a dynamically adjusted base fee and optional priority fee. |
| H.6 | Use of distributed ledger technology |
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| H.7 | DLT functionality description | N/A |
| H.8 | Audit |
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| H.9 | Audit outcome |
Object: Core Chiliz Chain smart contracts used at mainnet launch, including the staking contract, governance contract and bridge contract. Findings: Minor risks were identified in these contracts, with no indication of unresolved high-severity issues at launch. Remediation: The necessary fixes were implemented before the 2023 mainnet launch, and the contracts remain subject to further audits when they are upgraded. CertiK’s Governance and Core Contracts Object: Smart contracts underpinning Chiliz governance and core V2 contracts, including the V2 Genesis Contracts and related upgradeable components, as well as the on-chain vote token implementation reviewed under the Chiliz project on CertiK Skynet. Findings: No critical issues, several major centralisation-type findings, plus medium, minor and informational issues, all marked as acknowledged. Remediation: The identified issues have been addressed. Halborn’s Chiliz Bridge Smart-Contract Audit Object: Smart-contract infrastructure for the Chiliz Bridge that connects CHZ between Ethereum and the Chiliz Chain. Findings: No critical, unaddressed issues. Remediation: Subsequent updates to bridge logic are tracked via blockchain code-change logs and outage reports. |
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| I.1 | Offer-related risks |
$MENGO Fan Token is being conducted nor an admission to trading is being sought at the time this White Paper is drawn up and notified to the competent authority. |
| I.2 | Issuer-related risks |
Operational Risks: These include risks related to the Issuer's internal processes, personnel, and technologies, which can affect their ability to manage crypto-asset operations effectively. Failures in operational integrity might lead to disruptions, financial losses, or Issuer’s reputational damage. Legal Risks: Legal uncertainties, potential lawsuits, or adverse legal rulings can pose significant risks to issuers. Legal challenges may affect the legality, usability, or value of a crypto-asset. Reputational Risks: Negative publicity, whether due to operational failures, security breaches, or association with illicit activities, can damage an Issuer's reputation and, by extension, the value and acceptance of the crypto-asset. Dependency on Key Individuals: The success of some crypto projects can be highly dependent on the expertise and leadership of Issuer’s key individuals. Loss or changes in the project’s leadership can lead to disruptions, loss of trust, or project failure. Counterparty Risks: Risks associated with the Issuer's partners, suppliers, or collaborators, including the potential for non-fulfillment of obligations that can affect the Issuer’s operations. |
| I.3 | Other tokens-related risks |
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| I.4 | Project implementation-related risks |
It should be noted that the project may face strong competition from other similar projects or the token may have low liquidity in the secondary market, which may hinder its success. Token Functionalities The User understands that the Partnership Agreements with CR Flamengo will eventually expire or may be terminated and the User acknowledges that $MENGO Fan Tokens may partially or fully lose their Token Functionalities as a result of such expiration or termination. |
| I.5 | Technology-related risks |
Blockchain Dependency Risk: The $MENGO token is built on the Chiliz Chain, making it inherently reliant on the stability, security, and long-term operation of the underlying blockchain. Any disruptions, protocol upgrades, or governance decisions on the Chiliz Chain could potentially impact the token’s functionality, transaction speed, and overall ecosystem integration. Changes to gas fees, validator incentives, or consensus mechanisms may also influence transaction costs and user adoption. Smart Contract Risks Despite thorough testing and audits, smart contracts are susceptible to vulnerabilities such as logic errors, reentrancy attacks, or integer overflows. If an exploit is discovered in the $MENGO token’s contract, it could lead to financial losses, token theft, or unintended behaviors. Private key management The security of crypto-assets heavily depends on the effective management of private keys, which serve as the only means to access and control digital funds. Losing a private key or engaging in poor security practices, such as sharing or storing keys insecurely, can result in the irreversible loss of assets. Additionally, theft or unauthorized access to private keys can lead to the complete loss of funds, emphasizing the importance of secure key storage solutions like hardware wallets and multi-signature schemes. Network Security Risks While Chiliz Chain benefits from robust blockchain security, it remains susceptible to network-level attacks such as Sybil attacks, 51% attacks, or DDoS attempts on validators. Transaction Finality Transactions on the Chiliz Chain achieve finality probabilistically, meaning their security increases as more blocks are confirmed. However, theoretical risks of transaction reversals exist, particularly in cases of blockchain reorganizations or consensus attacks. Furthermore, transactions sent to incorrect or unintended addresses are typically irreversible, making it crucial for users to double-check addresses and transaction details before execution. Scalability issues As blockchain networks experience increased adoption and usage, scalability challenges can arise. A higher number of transactions on the Chiliz Chain might lead to network congestion, resulting in increased transaction fees, slower confirmation times, and reduced usability. Consensus Failures Issues with a blockchain’s consensus mechanism can lead to serious disruptions such as network forks, operational halts, and a loss of trust among participants. Forks can result in duplicate transactions or diverging ledger states, causing confusion and potential financial losses. Ecosystem Dependency Risks The $MENGO token is currently compatible with many platforms across the Chiliz Chain or even the wider EVM Ecosystem. It is always best practice to only interact with reputable platforms. Evolving Technology Risks Blockchain technology is rapidly evolving, and new standards, protocols, or competitor chains could render existing token implementations obsolete. |
| I.6 | Mitigation measures |
Comprehensive Testing: The smart contracts were extensively tested in multiple scenarios to ensure reliability and correctness during token distribution and refunds. However, the User understands and acknowledges that complex software such as the smart contract system, and all other software applications that are used for the Fan Token Offering are never entirely free from defects, errors, bugs, and security vulnerabilities, and that the Issuer therefore does not warrant thatthe Fan Token will be free from defects, errors, and bugs. If any issues or problems arise in connection with the participation in the Fan Token Offering, it may take days, weeks or months to resolve, and some issues may not be resolved at all. Network Security Risks Validator Network Diversity: Chiliz Chain’s validator network continues to grow and diversify, enhancing resilience against potential centralization or targeted attacks. However, the User understands and acknowledges that any transaction of Fan Token may be delayed or not be executed due to the transaction volume on the blockchain, mining attacks and/or similar events. Tokens on blockchain platforms face multiple risks including software errors, network connectivity disruptions, hardware failures, security threats from hacking or unauthorized access, and changes in consensus rules. Additionally, forks, validator penalties, and fluctuations in token stability and value can affect tokens adversely. These issues can lead to token loss or negatively impact their value. Evolving Technology Risks Adoption of Updates: The $MENGO project team actively monitors advancements in blockchain technology and commits to adopting improvements in the Chiliz Chain ecosystem to maintain competitiveness. |
| N | Field | Content |
|---|---|---|
| S.1 | Name |
|
| S.2 | Relevant legal entity identifier |
|
| S.3 | Name of the crypto-asset |
|
| S.4 | Consensus mechanism |
Chiliz Chain uses Proof of Staked Authority, a hybrid consensus mechanism that combines Proof-of-Authority-style validator rotation with Proof-of-Stake-based weighting and eligibility. A limited set of “Main Validators”, each required to bond CHZ and be approved through on-chain governance, is responsible for proposing and validating blocks, while additional validator candidates can remain in an active queue with bonded stake, ready to replace or supplement the main set as staking weights or governance decisions change. Main Validators take turns producing blocks in a deterministic rotation, rather than open competition, which keeps block times predictable. The Parlia consensus engine coordinates block production and interacts with system contracts that manage staking, validator-set updates, distribution of block rewards and penalties for misbehaving or offline validators. This PoSA design, adapted from BNB Smart Chain, is tuned for short block times, low transaction fees and fast practical finality suitable for consumer-facing applications such as Fan Tokens, while relying on a comparatively small validator set and therefore offering a lower degree of permissionless decentralisation than large, fully open validator networks. |
| S.5 | Incentive mechanisms and applicable fees |
|
| S.6 | Beginning of period to which disclosed information relates |
|
| S.7 | End of period to which disclosed information relates |
|
| S.8 | Energy consumption |
|
| S.9 | Energy consumption sources and methodologies |
|
| S.10 | Renewable energy consumption | N/A as the energy consumption value (S.8) does not exceed 500,000 kilowatt-hours as set forth in article 4.2 of Commission Delegated Regulation (EU) 2025/422 of 17 December 2024 supplementing Regulation (EU) 2023/1114 of the European Parliament and of the Council with regard to regulatory technical standards specifying the content, methodologies and presentation of information in respect of sustainability indicators in relation to adverse impacts on the climate and other environment-related adverse impacts. |
| S.11 | Energy intensity | N/A (see S.10) |
| S.12 | Scope 1 DLT GHG emissions - controlled | N/A (see S.10) |
| S.13 | Scope 2 DLT GHG emissions - purchased | N/A (see S.10) |
| S.14 | GHG intensity | N/A (see S.10) |
| S.15 | Key energy sources and methodologies | N/A (see S.10) |
| S.16 | Key GHG sources and methodologies | N/A (see S.10) |
| S.17 | Energy mix | |
| S.18 | Energy use reduction | N/A |
| S.19 | Carbon intensity | N/A |
| S.20 | Scope 3 DLT GHG emissions - value chain | N/A |
| S.21 | GHG emissions reduction targets or commitments | N/A |
| S.22 | Generation of waste electrical and electronic equipment (WEEE) | N/A |
| S.23 | Non-recycled WEEE ratio | N/A |
| S.24 | Generation of hazardous waste | N/A |
| S.25 | Generation of waste (all types) | N/A |
| S.26 | Non-recycled waste ratio (all types) | N/A |
| S.27 | Waste intensity (all types) | N/A |
| S.28 | Waste reduction targets or commitments (all types) | N/A |
| S.29 | Impact of the use of equipment on natural resources | N/A |
| S.30 | Natural resources use reduction targets or commitments | N/A |
| S.31 | Water use | N/A |
| S.32 | Non recycled water ratio | N/A |
| S.33 | Other energy sources and methodologies | N/A |
| S.34 | Other GHG sources and methodologies | N/A |
| S.35 | Waste sources and methodologies | N/A |
| S.36 | Natural resources sources and methodologies | N/A |