Hello dear Sheikhs & fellow investors,
I’m sure my question is in the minds of thousands of Muslim investors out there. And we’re extremely eager to find the final word on this matter. because regardless of the many many articles, posts and videos out there, things are still a bit shady and unclear.
It’s regarding Staking tokens, especially in the new Metaverse projects.
Most new projects (if not all) has a “treasury” as a main component of the projects, which they rely on to provide the necessary liquidity to run the project operations. and they offer users the option to stake their tokens in that treasury and earn rewards.
Lets take for example the No.1 ranked project in terms of market cap: Axie Infinity,
in their staking whitepaper they say:
The distribution parameters should foster a sustainable, healthy, and impactful play-to-earn/staking economy, whilealso catalyzing further player adoption.AXS stakers earn both staking and treasury yield. Staking yield consists of funds that move from the Axie staking multi-sig directly to stakers. Treasury yield consists of funds that move out of the Treasury to stakers. The underlying Treasuryfunds are made up of AXS tokens sent to the Treasury (from staking issuance) and exogenous network revenue(stablecoins and ETH).
(more details can be found here)
This same exact model goes on for most of the emerging metaverse projects.
Please dear sheikhs give us your take on this… we don’t wanna be missing these great opportunities if it is Halal to invest in.
Thank you so much Jazakum Allah Khairan Katheeran
Please note that we don’t screen tokens on this forum. We have our IFG Halal Crypto List (https://www.islamicfinanceguru.com/crypto/), where we share our own sharia screening of the top 50 cryptocurrencies. Check it out!