HALAL Screening Cryptocurrency
Is Axelar Halal?
Complete Shariah Compliance Screening of Axelar to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Axelar
AXL is a cryptocurrency that aims to make it easier for people to access and use decentralized finance (DeFi) services. Think of it as a digital token that helps you participate in various financial activities without needing a traditional bank. With AXL, you can lend, borrow, or trade assets directly on the blockchain, which means you have more control over your money and can often enjoy lower fees compared to regular financial services.
What makes AXL unique is its focus on community and accessibility. It’s designed to empower users by providing tools that are user-friendly, even for those who might not be tech-savvy. Plus, AXL often rewards its users for participating in the network, creating a sense of belonging and encouraging more people to join in on the fun of decentralized finance. So, it’s not just about the money; it’s about building a supportive community around financial freedom!
Transparent and Credible Team
The report provides details on the co-founders, Sergey Gorbunov and Georgios Vlachos, including their backgrounds and experience, notably with Algorand. This suggests a transparent team with credible history.
Score: 85
Clear Use Case or Purpose
Axelar aims to unify the fragmented blockchain ecosystem by providing a secure, scalable, and programmable cross-chain interoperability layer. This demonstrates a clear and legitimate use case. Axelar also aims to increase worldwide participation in new decentralized economies.
Score: 90
Absence of Fraudulent Behavior
The project has undergone multiple third-party audits by firms like Ackee Blockchain and Least Authority. While some issues were identified, they were addressed. There are no indications of scams or rug-pull risks.
Score: 90
Ethical Practices
The project emphasizes security features to protect user data and assets. It uses a proof-of-stake consensus mechanism and a dynamic, permissionless validator set to ensure security and decentralization. However, there are no explicit mentions of ethical practices beyond security and decentralization.
Score: 75
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Axelar 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.
Axelar 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
Axelar 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 Axelar Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Axelar Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform