Is Avalanche Halal: Is AVAX Halal?

What is Avalanche: AVAX?

Avalanche is an open source platform for launching decentralized finance applications and business blockchain deployments in one interoperable, scalable ecosystem. Developers who build on Avalanche can build applications and custom blockchain networks with complex rules or build on existing private or public subnets.

Avalanche was first conceived and shared on InterPlanetary File System (aka IPFS) in May 2018 by an anonymous group named “Team Rocket.” Later, it was developed by a team of researchers at Cornell University.

Emin Gun Sirer led the research along with Maofan “Ted” Yin and Kevin Sekniqi, postdoctoral researchers in computer science and software engineers. Following the completion of the research, the Computer Science department’s academic group Ava Labs was founded to create a network for the financial sector. In March 2020, the source code for the Avalanche consensus protocol was made available to the public on Ava Labs’ website, as open source.

Further details can be found on Avalanche website.

Who Invests In Avalanche?

MetaStable Capital

NGC Ventures

Polychain Capital

SNZ

Three Arrows Capital

a16z Crypto 

Avalanche Technology

Avalanche is a cross-platform, interoperable system for launching decentralized finance apps and enterprise blockchain applications. Avalanche uses Proof-of-Stake, allowing validators to have a first-hand say in the system while using minimal power. Avalanche is not a single chain network.

It comes with multiple chains, some of which perform core functions while others are application-specific. Avalanche chains that are not core are called subnets. Validators on noncore Avalanche chains must be a member of the primary network. Optional Avalanche chains are called chains.

The primary network contains three blockchains: Platform Chain (P-Chain) Contract Chain (C-Chain) Exchange Chain (X-Chain)

Legitimacy Screening of AVAX

Avalanche is a legitimate blockchain project, having been developed by researchers from an internationally recognised university. It is also backed by some of the largest VC’s in the world.

This gives us the confidence to confirm that AVAX has an underlying fundamental value, that can be considered as “Mal” under Islamic rulings. Therefore, as a project it has legitimacy in terms of Shariah.

Is AVAX project aligned with Islamic values?

Yes, AVAX project does align with Islamic values so it has a big tick as far as the project screening is concerned. Avalanche is a decentralized platform that enables users to build personal decentralized applications that run on blockchain technology.

Financial Screening of AVAX:

Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. AVAX is not backed by any equity, although VC’s own around 16% of the organisation, this was not through traditional interest based lending so there is no financial screening required on this coin/ token. Or any concern in this regard.

AVAX Token Screening for Shariah Compliance

Avalanche utilizes a novel family of Proof-of-Stake consensus protocols collectively called Snow. The family consists of three components   Slush, Snowflake, and Snowball. Snowflake and Snowball are BFT protocols built around Slush, a non-BFT metastable mechanism.

Avalanche’s consensus is leaderless by design, which facilitates transactions and consensus. Nodes are encouraged to determine consensus by forming a dialogue at random until they reach a predetermined percentage.

AVAX tokens are used for security and serves as the base unit of account for an exchange. Therefore, the token would be considered halal.

Is Staking AVAX Halal?       

50% of the generated tokens were released at the startup. The remainder are used as staking rewards to be filled over decades. Validators are rewarded for securing the Avalanche network, creating new block vertices, and processing transactions.

This method of staking is in line with Islamic guidelines, so staking Avalanche: AVAX is Halal and permissable.

What Does The Muslim Crypto Community Think of Avalanche?           

Islamic Finance Guru (IFG) believes Avalanche: AVAX is a halal cryptocurrency based on its method of Shariah complaince screening.

Sharlife considers AVAX as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.

Practical Islamic Finance (PIF) is comfortable about Avalanche: AVAX meeting its Shariah screening.

Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks AVAX is a Halal digital asset based on its Shariah complaince screening.

If you know of other academic or scholarly views on this, please add in comments and we will update accordingly. Alternatively, you may want to join our community of Muslims crypto investors and traders, to share, learn and profit from halal digital assets.          

Is Avalanche Halal: Is AVAX Halal?

Yes, majority of the Muslim Crypto community beleive Avalanche: AVAX is Halal and can be part of your investment portfolio. offers cloud based storage solutions using blockchain technology. Think of Avalanche as another Ethereum. It operates and functions as a store of value and offers a platform to build Dapps through smart contract, with a proof of stake consensus mechanism.

We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.