Proof of Stake (PoS) coins: are they halal?

What is Proof of Stake (PoS)?

Proof of Stake coins secure their network by having validators lock up native tokens as collateral, rather than by expending computational work, and reward them for doing so.

How CryptoUmmah screens Proof of Stake (PoS) coins

PoS is a riba-dominant category in our scoring specifically because staking rewards are the single easiest place for a lending-like structure to hide inside a "reward." Our staking criteria explicitly classify each project's mechanism against Islamic contract models — a reward that behaves like Wakalah or Mudarabah (variable, tied to genuine validation performance, with real slashing risk) scores favorably, while a fixed, guaranteed APY disconnected from real network performance reads as Qard — a loan with a guaranteed return — and is scored as a riba concern accordingly. This is why two PoS coins with near-identical technology can land on very different riba scores: the deciding factor is the reward structure, not the consensus mechanism itself. Across the 79 Proof of Stake (PoS) coins we've screened, the average Shariah compliance score sits at 68.9/100, with 52% classified Halal, 42% Mashbooh, and 6% Haram.