HALAL Screening Cryptocurrency
Is Polygon Halal?
Complete Shariah Compliance Screening of Polygon to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Polygon
MATIC, now known as Polygon, is a cryptocurrency that helps make transactions on the Ethereum blockchain faster and cheaper. Think of Ethereum as a busy highway where cars (transactions) can get stuck in traffic. Polygon acts like a side road that allows those cars to move more smoothly, so people can send and receive money or use apps without long waits or high fees. It’s designed to improve the overall experience for users and developers who want to build on Ethereum.
What makes Polygon unique is its ability to connect different blockchains, allowing them to work together seamlessly. This means that developers can create applications that can interact with multiple networks, making it easier to share information and value across different platforms. Plus, it’s built to be user-friendly, so even if you’re not a tech expert, you can still enjoy the benefits of faster transactions and lower costs. It’s like having a universal remote for your favorite devices, making everything work together effortlessly!
Transparent and Credible Team
The report identifies the co-founders (Sandeep Nailwal, Jaynti Kanani, Anurag Arjun, and Mihailo Bjelic) and details their experience and roles within the project. This suggests a transparent team with credible history. Score: 85
Clear Use Case or Purpose
The whitepaper clearly articulates Polygon's purpose as a layer-2 scaling solution for Ethereum to reduce transaction costs and increase transaction speed, while maintaining security. This demonstrates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
Polygon has undergone multiple third-party audits by firms like Hexens, Spearbit, and QuillAudits. These audits aim to ensure the security and reliability of the platform and its smart contracts. The report notes that vulnerabilities were identified and fixed. There are however, some claims about misappropriation of tokens, which raises some concern, so the score is reduced slightly. Score: 75
Ethical Practices
The project emphasises transparency, detailed documentation, and third-party audits. There are also efforts to comply with regulations and industry standards. However, there are also concerns about misappropriation of tokens and token dumping, which lowers the score. Score: 75
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Polygon Halal Project Screening
- Are the project’s purpose and operation Shariah Compliant.
- Does the project operate ethically and transparently, without harm to society.
- Does the project promote positive societal or environmental outcomes.
Polygon Financial Screening
- Does the revenue involve Riba (interest), Gharar (excessive uncertainty), or Haram activities.
- What red flags are hidden within the projects finances and are within permissible limits.
- Types of revenue generation activities and the percentage that may be Riba or interest based.
- Audits from reliable sources
Polygon Token Screening
- Is the Token governance fair and ethical?
- Are profit-sharing mechanisms (e.g., staking rewards, dividends) compliant with Islamic Finance?
- Does the token’s design, or unlock schedule raise unethical concerns?
- Halal underlying asset, and free from impermissible elements
Is Staking Polygon Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Polygon Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform