Crypto Question: Is crypto assets Staking permissible?

Salaam alaekum @Mufti_Faraz_Adam;
Is it permissible to stake crypto assets and earn ROI on them? The companies use different wordings like Reward or Interest to describe the ROI to the asset owner who carried the risk of trusting the asset to the staking platform.

There are 2 forms of staking I have come across -

  1. crypto asset is locked and inaccessible to you for a period, with different ROi based on how long the asset is locked.
  2. crypto assets are not locked and you are allowed to withdraw the asset anytime (soft staking).

Example of these types are on crypto.com (which also has an exchange coin CRO) exchange.

To be specific on the crypto assets for staking, I am keen to know if staking CRO coin on crypto.com is permissible in either of the above forms.

Jazakallah

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Assalaamu alaykum,

I hope you are well.

Based on my understanding of staking, in and of itself, it is not an issue. However, you would have to ensure the crypto you are purchasing and staking is Shariah compliant.

You may read the following to get a better idea:

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Is staking with a fixed % return halal?

Although the fixed % remains variable based on demand and project factors.

Wa alaykum salaam,

The entire structure and particulars of the token would have to be addressed before being able to come to a conclusion to this query.

Jzk for the response.

Generally speaking, is a Mentioned fixed % (6% for eg) return guaranteed for a set period (per epoch in this instance) halal?

Or if an investment returned a set fixed amount every x days, would this be halal?

A fixed return can be structured in multiple ways. For example, in Ijarah and Murabaha, a fixed return is fine. But in other contracts like mudaraba, a fixed return is problematic, you can only have a fixed percentage of profit share and not a guaranteed return.