If a halal crypto project has an illicit staking method, is investing in it becomes haram too or only stake it is haram?
Question submitted by user.
If a coin is halal but its staking mechanism is the only part that is considered haram then there is no harm in buying, selling or investing in such a coin. As long as you stay away from the staking aspect this should fine. It’s a bit like using a bank account to buy and sell things but not take interest from the bank. If you can separate the two, there should be no issue. The only other thing I can think of is to be sure the staking does not impact the value of the currency itself otherwise the haram activity may actually make the underlying currency haram as well.
We haven’t fully screened DAI, but it is listed as halal based on the opinions of 4 sources on this. Its worth noting that opinions are divided with half saying it is halal and the other half saying it may not be. We lean slightly towards the halal side, based on credibility of sources, but havent actually screened it yet.
If you have doubts too, you may want to just avoid it for the time being.
Jazak Allah. I understand, and I don’t personally invest in crypto or stocks myself, I work as a software engineer and when my workplace wants to allow certain tokens for our apps (so the users can use our apps using those tokens if they wish) or they want to collaborate with certain platforms, I have to research these topics!
Sometimes I wish there were guidelines and forums for working professionals working in such conditions to ask and discuss.
@Thanvir Please forgive my ignorance, but does that make DAI token halal to use? I’m asking because some scholars say the creation process for DAI involves interest (Maker DAO), so its haram, some say it’s permissible to use for quick transactions, but stay away from staking etc.