Is DASH Halal?
In this article we do a complete Shariah screening of DASH cryptocurrency. From investing, trading to staking, we’ve got your halal crypto investments covered.
What is Dash?
Dash is a Payment-centric fork of Bitcoin. It has added a variety of features to the sector, including its MasterNode network, Capital Lock feature, InstantSend, and LLMQs, which boost scalability, speed, reliability, cost-effectiveness, and user experience.
Decentralized autonomous organization, Dash is also the oldest of its type, providing on-chain governance to allocate network resources toward projects and organizations that support the network.
Dash was created by Evan Duffield and a team of others who set out to create a better alternative to Bitcoin that seemed to angle toward everyday use while also optimizing user control over transaction privacy.
Further details on Dash website
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Dash provides holders with a feature called InstantSend, which can be used to allow holders to send Dash on the Network and receive confirmation of their transactions instantly. Another feature Dash provides is PrivateSend, which can be used for even more private transactions by blending Dash of several holders before publicly transmitting the Dash, which effectively conceals its source.
Legitimacy Screening of Dash
Dash has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that DASH 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 Dash project aligned with Islamic values?
Yes, DASH project does align with Islamic values as the projects main focus is making a more credible, fast, and highly secure cryptocurrency for public use. DASH is a hard fork of LTC with several similar features to the ecosystem from which it was originally derived. There is nothing against Islamic ruling within this project.
Financial Screening of DASH:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Dash is not backed by any equity, so there is no financial screening required on this coin/ token. Here we would typically look at things like debt to income ratio to ensure borrowing is limited to a tolerable level.
DASH Token Screening for Shariah Compliance
Similar to Bitcoin or fiat money, a token is required by Dash as a measurement for the value exchanged on the Dash network. Dash is a pure monetary token, and users interact with it by sending it to one another, by selling and buying on exchanges or the OTC market, or through DeFi for lending and staking.
Masternode owners also use their Dash as funding collateral to set up masternodes, to help ensure that the network is properly distributed.
Based on this the token is permissable so DASH token is considered halal.
Is Staking DASH Halal?
Yes, staking Dash is Halal. Proof of steak method used by this project for staking is permissable and in line with Islamic law.
What Does The Muslim Crypto Community Think of DASH?
Islamic Finance Guru (IFG) believes DASH is a halal cryptocurrency based on its method of Shariah complaince screening.
Sharlife considers DASH as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Dash 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 DASH Halal?
Yes, DASH is Halal as it is similar to Bitcoin or fiat money. A token is required by Dash as a measurement for the value exchanged on the Dash network. Fairly straight forward and permissable for Muslims to trade and invest in as it is not against Shariah.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.